Since the start of the Coronavirus pandemic 6 months ago, and most companies and educational institutions have moved to work remotely from home, the share of the "Zoom" company for video conference services increased from $ 90 in mid-February to $ 457.69;

That is, the company's share achieved an increase of 311%.

The company achieved profits estimated at $ 663 million in the second quarter of this year, and the market value of the company reached about $ 129 billion, compared to about $ 16 billion at the public offering in April 2019, and thus Zoom exceeded the market value of "IBM" The legacy, which amounted to $ 109.9 billion.

Zoom added its market value of $ 37 billion after its share rose by more than 40% at the close of trading on Tuesday, to $ 457.69, but the stock fell, as happened with most technology companies ’shares, by the end of last week, to $ 370 per share.

That is, it lost about 20% of its value within two days, until the end of trading on Friday, September 5.

Corona positive effect

Zoom Takes Advantage Of The Growing Demand For Online, Work From Home, And Tele Teleconference Services;

Due to the general lockdown that accompanied the Corona pandemic, and is still continuing with the start of the new school season.

Zoom was not alone in its successes. Shares of the major technology sector companies have made great profits during the past 6 months. Apple’s share rose from $ 80 in mid-February to $ 120 last week.

That is, it achieved 50% profits, and Microsoft’s shares rose from $ 180 to $ 214.

That is, more than 20%, and the stock of the company "Amazon" (Amazon) rose from 2134 dollars in mid-February to reach 3294 dollars last week;

That is, it recorded an increase of 54%.

Google recorded the lowest percentages among its counterparts from the tech giants, and its share rose from $ 1,513 in mid-February to $ 1581 last week, an increase of only 4.5%.

The "Nasdaq" index of technology stocks witnessed a strong rally due to the collapse of the stock markets;

Due to the economic shutdown in the United States on 19 March, during that period the index achieved a rise of 70%.

The Zoom company has taken advantage of the growing demand for teleconferencing services via the Internet, work from home and remote education (Reuters)

Fluctuation may persist

Many observers considered that the sudden drop that the markets witnessed on last Thursday and Friday, reaching 6%, expresses "a period of rest, and could be considered a natural development."

Stocks witnessed their worst day since June, with a sudden drop on Thursday and Friday in shares of big tech companies such as Apple and Amazon pushing the Standard & Poor's 500 Index to a 3.5% drop and the Dow Jones Index. Jones Industrial Estate Company, 2.8%.

The drop in technology stocks comes after a series of record-breaking trading days, largely fueled by some of the tech giant's shares, such as Facebook, Apple and Amazon.

It was these same technology companies that led the decline in the market, with Apple dropping by 8%, Microsoft losing more than 6%, and electric car maker Tesla, which had become favored by speculators, losing 9%.

In an interview with Al-Jazeera Net, Sherif Othman, an investment and financial markets expert at Washington Analytica, said, "The market simply stopped after rising for months, and this often happens in September with the end of the summer holidays."

"The stock market has come a long way from the rise in stock prices in a short period of time, especially in the technology sector, and what happened is a breathtaking pause, which is normal and healthy," he said.

Contrary to the decline in technology stocks, some stocks hit hard by the pandemic shutdowns rose sharply, such as Macy's and the Carnival Cruise Line.

Market volatility comes at a time when concern continues about the impact of the epidemic on the economy, and the positive jobs report for August did not leave any positive impact on the technology stock market.

Now, in the short term, the overall market is believed to be at risk of falling 10% to 15% in the coming days and weeks.

But in the medium and long term, and with the continuing consequences of the spread of the new Corona virus on the education sector and the service sector in the economy, it is expected that the technology sector will continue to rise, albeit at rates lower than what the markets witnessed during the last 6 months, according to the opinion of the majority of financial experts.