Bank of America Suggests Investing In Smaller Tech Companies Due To Pandemic
Although large tech companies have received lots of attention for their growth during the pandemic, Jill Carey Hall, Bank of America’s head of small- and mid-cap strategy, believes that smaller tech companies also have a large opportunity for growth.
There are a wide range of tech companies that are set to benefit from the “new normal” established by the coronavirus. Those companies that focused on streaming, e-commerce, social media and in tele-health are expected to increase in share value, according to Business Insider.
Companies that provide services associated with facilitating remote working are set to benefit. Western Digital is a leader in providing hard disk drives to companies, which is essential to helping companies transition to “the cloud” and further facilitate remote working. Additionally, Proofpoint is expected to serve a sustained demand in email security services.
"Proofpoint is the leader in the healthy and stable Email Security market. The vendor dominates with larger enterprises where spending will likely remain relatively resilient during COVID-related macro pressures," Carey Hall said.
Additionally, companies that are helping consumers adapt their shopping practices to adhere to social distancing guidelines are predicted to grow.
"We are challenged to find another company in our coverage universe with as large of a market opportunity ahead of it ... We see CVNA as a beneficiary of the likely post-COVID "new normal" as more consumers may shift to a digital car shopping experience," Carey Hall said.