3 Beaten-Down Tech Stocks That Will Outlive Coronavirus
As of this writing, the stock market (as measured by the S&P 500 index) is down 29% from all-time highs. What started as just another potentially worrisome infectious disease in China has sent the world into lockdown mode. The economy is up in the air, and it's anyone's guess when the spread of coronavirus and investor panic will ease up.
For some high-growth technology stocks, the drop has been even more dramatic. That makes sense as investors reduce risk in companies that were valued as if the good times were going to last forever. However, while some of these high-growth firms' investment theses may wind up with serious holes in them, some could wind up in an even stronger position post-COVID-19 crisis than they were before. Three that could fit that bill are The Trade Desk (NASDAQ: TTD), Twilio (NYSE: TWLO), and Fastly (NYSE: FSLY).
On one hand, major global events like the one created by COVID-19 means it's great to be in advertising. Fear sells like nothing else, and audience engagement is going through the roof as people tune in to get the latest updates. But on the other hand, it's terrible timing to be in the advertising industry, as spending on ads tends to plummet when the economy is under duress.
Source Fool.com
