Tech stocks are holding up relatively well during today’s market selloff, and quite a few of the names seen as winners in the current environment are actually rallying.
While the Dow and the S&P 500 at this writing are down 2.8% and 2.2% respectively, the Nasdaq Composite is down 1.3%. And the Nasdaq 100 index, the weighting of which skews heavily toward big-cap tech companies, is down just 0.9%.
Worries about a recent spike in global covid-19 cases and related concern about the virus’s economic impact in the coming months are apparently weighing on equity markets today.
Against that backdrop, many investors are once more treating companies whose products and services help consumers work, learn and/or entertain themselves remotely like safe havens -- despite the high valuations many of them carry.
Zoom Video Communications (ZM) - Get Report is up 6.1%, Fastly (FSLY) - Get Report is up 8.9%, Peloton (PTON) - Get Report is up 6.3%, Twilio (TWLO) - Get Report is up 5.1%, Chegg (CHGG) - Get Report is up 4.9%, Okta (OKTA) - Get Report is up 4% and DocuSign (DOCU) - Get Report is up 4.2%.
Roku (ROKU) - Get Report, meanwhile, is up 16% after the company said after Friday's market close that it reached a deal with NBCUniversal. Under the terms, the Peacock streaming service will become available on Roku’s platform and NBC content will be added to Roku’s ad-supported streaming service, The Roku Channel. On Monday morning, Roku said the Peacock app had launched on its platform.
Gaming companies are also faring well today, perhaps with an assist from news of Microsoft’s (MSFT) - Get Report $7.5 billion deal to buy the parent of game publisher Bethesda Softworks. Take-Two Interactive (TTWO) - Get Report is up 2.8%, Electronic Arts (EA) - Get Report is up 1.8% and Activision Blizzard (ATVI) - Get Report is up 1.6%.
On the flip side, tech companies whose businesses depend heavily on sectors such as travel and hospitality -- which are thus seen as reopening plays -- are having a harder time today.
Booking Holdings (BKNG) - Get Report is down 5.6%, Expedia (EXPE) - Get Report is down 2.7%, Uber (UBER) - Get Report is down 2.3%, Lyft (LYFT) - Get Report is down 5.5% and Eventbrite (EB) - Get Report is down 4.9%.