Tech stocks are trying to make hay while the sun isn’t shining
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In the last month tech stocks have been plunging right alongside their non-tech peers. This week some adopted a new tactic to help stem the losses.
Some have merely said things are fine, nothing to see here, while others have been spruiking the potential benefits from the change that is occurring thanks to the coronavirus pandemic.
Take fintech lender Wisr (ASX:WZR), for example, which has gained over 40 per cent today.
The company said it had not seen a material impact to its business. It has written $31.6m in loans so far this quarter and its growth targets are on track.
But this didn’t mean it was business as usual — all staff worked from home on Fridays and Wisr is reviewing its credit policy and proprietary decision engine rules in line with changes to economic forecasts.
Nevertheless CEO Anthony Nantes said,”the company is well structured to withstand and succeed through any potential economic softening”.
Another potential beneficiary of the pandemic is software-based communications workflow platform Whispir (ASX:WSP). While many other companies have suspended their forecasts, Whispir reaffirmed its forecasts.
“Whispir’s platform is providing a business-critical communications solutions during this evolving pandemic, enabling our customers to effectively inform their staff, customers and suppliers as the situation continues to rapidly change,” CEO Jeromy Wells said.
Even if business is interrupted, it may be the wakeup call needed to realise that businesses have to be profitable in the long term to be sustainable.
This morning Linius Technologies (ASX:LNU) released an update and despite it being clear it was not business as usual it rose 10 per cent.
The company announced cost reduction strategies in addition to those announced in its last quarterly. The board and senior management put their hands up to take pay cuts of up to 80 per cent of total compensation.
Linius also updated shareholders on its current clients and mentioned it had made positive inroads in recent months.
Other tech stocks are taking advantage of the increasing number of people now working from home. Business-focused telco Spirit Telecom (ASX:ST1) today launched packages specifically designed for ‘work from home’ situations.
The company has also developed a solution specifically for the health and aged care sectors. It has a platform enabling practitioners to diagnose and treat patients from their own home.