3 Tech Stocks To Buy With COVID-19 Infections Soaring

Pfizer Inc.’s (PFE) revelation on November 9th that its COVID-19 vaccine, which it developed in collaboration with German biotechnology firm BioNTech SE (BNTX), demonstrated over 90% efficacy in preventing the infection, sent technology stocks down significantly. Investors rushed into buying shares of energy utilities, airlines, cinema companies, and hotels with the expectation that normalcy will return soon. The interim results from the Phase 3 trial raised hopes that the vaccine could become available by the end of 2020.

Tech stocks soar with COVID-19 infections

The pandemic resulted in investors picking up technology stocks as all other parts of the economy remain at a standstill. This has led to significant overbought conditions of ‘stay-at-home’ technology stocks. Year-to-date, Zoom Video Communications, Inc. (ZM) and Amazon.com, Inc.’s (AMZN) stock prices have skyrocketed 546% and 68%, respectively. In the two days following PFE’s announcement, AMZN and ZM fell as much as 5.6% and 15.5%, respectively, as some investors took profits.

However, investors soon returned to technology stocks as the world witnessed a second wave of infections. Several European nations have either gone into another lockdown or increased restrictions as the number of COVID-19 cases have surged. These countries include the U.K., Germany, Italy, Belgium, Spain, France, and the Netherlands. The new round of restrictions means there is still time before we return to normalcy.

Working, studying, or even simply staying at home is only going to increase people’s dependence on technology. This is likely to lead to a further rise in the demand for technology stocks. Paypal Holdings, Inc. (PYPL - Get Rating), CrowdStrike Holdings, Inc. (CRWD - Get Rating), and Twilio Inc. (TWLO - Get Rating) are three technology stocks worth considering in the current scenario. All three stocks have posted year-to-date gains in the double digits.

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