The current measures taken to protect people during the coronavirus pandemic have altered business models around the world. Virtually all sectors are affected, some almost crippled. Sectors like travel and tourism have cut close to 80% of their workforce amid travel restrictions. While both the private and public sectors rush to slow the spread of coronavirus, the effects on businesses are inevitable, if not permanent.
Interestingly, Information Technology firms are experiencing a rather different vibe. After announcing a 12 percent drop in the beginning weeks of the pandemic, current statistics show a dramatic reversal of this trend.
Jason Kulpa – a net worth expert and serial entrepreneur, believes in shifting cultures during tough times. The tech industry is a generally volatile market, and new trends emerge by the day. If the pandemic persists, we can expect to see significant shifts in the sector. Below, Kulpa comments on the effects of coronavirus on the net worth of tech companies in 2020.
As businesses shut down across the United States at the onset of the pandemic, close to 16.8 million Americans claimed unemployment benefits in a span of fewer than three weeks. Meanwhile, tech giants like Facebook are vamping up their capacity to an excess of 10,000 “high-skilled” positions this year.
Valued at US$1.2 trillion, Microsoft is the largest company in the world, and they, too, are in an enviable position at the moment. For instance, the Xbox gaming console recently gained more subscriptions on its Xbox Live online gaming. Microsoft is also set to rebrand Office 365, and it’s predictable the company will incorporate the adoption of teams in a remote work environment.
Tech companies that are offering services for remote communication and team management are expecting considerable momentum. Zoom founder, Eric Yuan’s net worth was US$1.9 billion during the company’s initial public offering back in April 2019. Since the beginning of 2020, Zoom’s stock more than doubled, increasing Yuan’s net worth up by 77 percent to US$7.8 billion.
The current working situation is also a big opening for Slack, a group collaboration software for employers and employees. The company recently announced a significant acceleration in paid subscribers since mid-March. Slack is also looking to work on integration with related firms like RingCentral and Zoom.
The American software company Citrix is valued for integrating desktop virtualization. During times like this, the company’s technology might be useful in the current work-from-home status. Employees will be able to continue working as they could in the office. Indeed, the company has already reported six Buy ratings as opposed to two Holds in the past weeks.
Tech analysts and investors still believe that consumer habits will continue to shape the market, potentially for the long-term. More startups will emerge to fill in gaps, and new tech giants will be born. As the medical sector fights to find a cure for COVID-19, the outbreak will undoubtedly have a significant impact on the net worth of tech industries.
About Jason Kulpa:
Jason Kulpa is a net worth expert and the founder and former CEO of UE.co, the innovative marketing platform and service provider that has been rated as an Inc. Fastest Growing Company. While he has been at UE.co’s helm for over nine years, Mr. Kulpa has been stimulating creativity and growth-oriented problem solving ever since graduating from Arizona State University. Years in operations roles at different tech companies have taught him that exciting company culture is one of the most important ingredients for success.