Our daily habits and relationships or behaviors in investment have been altered by the containment measures implemented by several countries in the world to try to avoid the coronavirus spread. To the point that greater interest has been shown towards some of the companies linked to new technologies, and due to the fact that in some of the cases they have revalued in this very complex period in the equity markets around the world. In business lines that have benefited from new consumption habits and that have become real business opportunities.
We cannot forget that in these moments applications and software that some of these listed companies show revaluations above 20%. Although for this you have to go to carry out your operations in the stock market in the US technology index, the Nasdaq. With a higher volume of contracts even than in other more normal periods of the year. This is the positive side of investing in buying and selling shares on the stock market. And from where the available capital can be made profitable from these difficult moments. It is true that there are few values, but enough to bet on these financial markets.
Within this general context, we can make the odd movement from these moments. But knowing very well where we invest our money so that in this way we do not have unwanted surprises. Because in effect, not all the stocks in the new technologies sector have had the same behavior these days. To the point that some of them have collapsed in their valuation on the stock market, with falls very close to 50%, as in the more traditional or conventional stock market indices. With few differences from BBVA, ACS, Telefónica or Banco Santander, to give just a few examples of this trend.
Tech: Netflix time
This platform for the leisure and entertainment It has been reinforced in its positions as a result of the confinement implemented by several countries in the world to try to prevent the spread of the coronavirus. To the point that it is tending in these complex days a greater demand from all users by requiring its services on a recurring basis. And what has led to their shares having appreciated since the first days of March. Being one of the proposals that is being advised mainly by the different agents or financial intermediaries. To be part of our investment portfolio for the coming months and for any kind of profile in small and medium investors.
While on the other hand, it is necessary to emphasize the fact that this company has been immersed in corporate movements as a result of the appearance of the coronavirus. In this regard, it should be noted that the European Commissioner for the Internal Market, Thierry Breton, on March 18 asked telecommunications operators and streaming platforms to take measures to lighten the networks in order to facilitate telework and online education to distance. As a collateral effect on Netflix of this event that affects a good part of the population on the planet. And that in a certain way it will condition its valuation in the international equity markets.
Better performance on the Nasdaq
The US technology index, the Nasdaq, has surprised many small and medium investors by performing better these days than the Dow Jones. While this has depreciated in a month around 25%, the Nasdaq at just slightly less than 20%. This fact has generated many monetary flows to this financial market. Not surprisingly, and to the surprise of many, it has become a safe haven to carry out investments. To replace some very traditional sectors, such as electricity companies, since they have shown better performance since March 1. Where some very relevant investment funds in the sector have also taken refuge.
As well as the fact that in some cases they belong to lines of business that are highly demanded by users around the world. As in the specific case of technological applications, audiovisual content and leisure and training programs which are having very high sales these days and which were not obtained in the preceding periods. Being one of the emerging segments and to the surprise of a good part of the small and medium investors. Although in Spain the offer is practically minimal and is only present in the alternative stock markets and under very modest business models.
New business opportunity
The world of innovation is growing by leaps and bounds. Perhaps that is why technology companies are conquering the equity market in recent weeks by offering products and services that are being popular. First need. For this reason, it is not surprising that these companies are the target of purchases by stock market users. And this increase in sales has been translated into a change in its valuation in international equity markets. Although it remains to be verified whether this trend will be specific or if on the contrary it will continue from now on in a recurring manner and with progress in its valuation in the financial markets in the medium and long term.
On the other hand, no less important is the fact that in the end it may be the solution for a good part of the small and medium investors in the decision that they are going to make in these special days for everyone. Above such conventional sectors, such as banking, construction, telecommunications, industry and even the energy companies themselves. Despite the fact that you can show greater volatility in their prices with very high divergences between their minimum and maximum prices and that in some cases they can even exceed levels of 10%. But with a less negative trend than in the rest of the stock market offer, which is what it is all about in this period of the year.
Greater consumption of online content
The Internet sector in the United States collects the price of the main companies in this technology sector in this variable income market, and in which they are included from consolidated companies to others in the process of expansion, although the offer offered by this stock market segment is clearly below those currently offered by the Chinese or Japanese stock exchanges, especially in terms of quantity, rather than quality. While on the other hand, it cannot be forgotten that the possibilities of revaluation are enormous due to the special characteristics of these values, but beware, also the losses that can be incurred. To verify this danger, it is enough to remember that two of the members of this index have had losses in the first four months of listing that are close to 40%.
On the other hand, they are companies that generally they do not usually distribute any dividend payment, which reduces competitiveness against the values that do. And that in a certain way, they are aimed at a more aggressive small and medium investor profile, which previously distinguished itself by seeking higher returns in a very short space of time. With greater risks in operations since, although it is true that in these values you can earn a lot of money, it should also be considered that you can leave large amounts of money for the path of these investments. But it seems that this trend has changed these days and has been revealed in the habits of stock users,
Increase in your stock offer
While finally, it is very important to highlight that this class of securities will increase in its offer in the coming years. To the extent that according to some reports it is found that will represent almost 60% of the supply of these financial assets. Covering more business segments than where they are located at this precise moment. For example, engaging in financial activities that until now were only carried out by financial groups.
So that in the long run its value on the stock market is increasingly important from all points of view. Like its innovation in all the products and services offered to customers or users and as a differentiating element with respect to the more traditional lines of business. They are more than enough reasons to look at new technologies with a different look when shaping our next investment portfolio. Where there must be a gap to include this kind of technological values. It can be a very profitable operation from this moment on investments in the stock market, with a simple change in strategy.