Reboot: Tech stocks can’t escape market hammering despite some being more in demand now than ever
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Shareholders are selling everything but COVID-19 connected stocks. And tech companies are starting to become the latest beneficiaries, with many saying they haven’t seen a drop-off in demand and others saying they are witnessing greater demand for their services.
Joel Camissar, a regional director at cyber security firm McAfee, told Stockhead cyber security was more important than ever now that many employees are working remotely.
He believes the broader infrastructure-as-a-service (IaaS) market will be $74.1bn by 2022.
But despite the increased demand for tech services, over the last fortnight the sector has lost 27 per cent. On a yearly basis it has retreated by 33 per cent.
Here are all the ASX small cap tech stocks and their performance in the past fortnight:
Swipe or scroll to reveal the full table. Click headings to sort
One substantial gainer was AI play Flamingo AI (ASX:FGO), which is up 50 per cent in the past two weeks.
Another winner is edtech Readcloud (ASX:RCL). The company has a platform for e-textbooks and while it has not commented specifically on the coronavirus situation, it previously said it expected growth this year.
Some stocks had major news in the last fortnight but were unable to escape the downward drag of the market.
Despite Italy going into lockdown, virtual reality player Vection Technologies (ASX:VR1), which counts the European country as a major market, said it was pretty much business as usual.
Managing director Gianmarco Biagi said virtual reality could help in these challenging times where firms had no other choice but to operate remotely.
“We believe that the use of real-time technologies such as virtual and augmented reality have the potential to ensure collaboration between people staying at home,” he said.
De.Mem (ASX:DEM) witnessed solid growth last year in demand for its water filtration tech and now it’s getting into hand sanitisers using the very same technology.
One particularly hit sub-sector are credit providers, from SME lenders to buy now, pay later stocks. It has been speculated that the crisis will lead to slower growth in new customers and an increase in bad debt from existing customers.
Personal lender Wisr (ASX:WZR) has dropped over 80 per cent but it says its loan book is still rising.
Even former market darling Afterpay (ASX:APT) has plunged by over 75 per cent. But yesterday CEO Anthony Eisen wrote to shareholders reminding them of the company’s liquidity position and reassuring them that Afterpay is well positioned to manage any losses well before they become a threat to the company.
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