If there is a single sector that should be thankful to the coronavirus outbreak (though sadly), it is technology. The sector’s rally has known no bound in recent weeks as the contagion is mandating social distancing and boosting the appeal for work-learn-play from home.
There has been an unprecedented rise in Internet usage due to work-and-learn-from-home, online retailing of daily essentials, mobile payments to avoid contact transactions and socializing. Now, the rampant usage of Internet has raised the risks of cyber threats, which in turn, benefited cyber security stocks.
Overall, the sector is thriving with bright possibilities, especially with coronavirus cases surging globally. Within this booming sector, four of the five big names — Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) , Apple (AAPL - Free Report) and Alphabet (GOOGL - Free Report) — surpassed a trillion-dollar market capitalization each for the first time since the COVID-19 pandemic. This is largely thanks to growing demand for digitization.
U.S. e-commerce sales surged 92.7% in May, according to a new SpendingPulse report from Mastercard. In April and May, consumers spent more than $53 billion via e-commerce in the United States. Not only this, many countries are gradually returning to physical offices and workspaces, 60% of IT leaders are continuing to increase their overall cloud usage and 91% are changing their cloud strategy to survive this new Covid world, per an article published on helpnetsecurity.
No wonder, on Jul 8, the tech-heavy Nasdaq hit a record high with Microsoft, Apple, Amazon, Facebook, Netflix and Alphabet rallying 2%, 2.3%, 2.7%, 1.1%, 2% and 0.73%, respectively. The Amazon stock hit the $3000-mark for the first time.
Along with Amazon, many other COVID-19-specific stocks hit a record high on Jul 8. These stocks will continue to gain as long as coronavirus threat remains rife. ETF investors can also access these winning stocks in a basket form. Below we highlight those stocks and the related ETFs in detail.
Winning Stocks & Related ETFs With Stock-Specific Weights
Amazon.com– Fidelity MSCI Consumer Discretionary Index ETF (FDIS - Free Report) (34.8%), Consumer Discretionary Select Sector SPDR Fund (XLY) (24.9%)
Amazon is a superb beneficiary of its mega-cloud exposure as well as online retailing. Amazon Web Services also launched a new business segment last week in order to serve the aerospace and satellite industry.
Datadog (DDOG) – TrueMark AI & Deep Learning ETF (LRNZ - Free Report) (5.85%) and Renaissance IPO ETF (IPO) (4.63%)
Datadog is a monitoring service for cloud-scale applications, providing monitoring of servers, databases, tools and services. Notably, the company is monitoring the severity of the virus spread through the Centers for Disease Control and Prevention and the World Health Organization by keeping a tab on local governments’ formation. DOG was up 6.7% on Jul 8.
DocuSign Inc (DOCU - Free Report) – Invesco Dynamic Software ETF (PSJ - Free Report) (6.88%) and Tortoise Digital Payments Infrastructure Fund (IPO) (6.20%)
DocuSign allows organizations to manage electronic agreements.The need for businesses to operate remotely made such services very useful amid the pandemic. DOCU was up 4.4% on Jul 8.
Crowdstrike Holdings Inc (CRWD - Free Report) – First Trust NASDAQ CEA Cybersecurity ETF (CIBR - Free Report) , Global X Cybersecurity ETF (BUG) (5.81%) and LRNZ (5.54%)
It is a cloud-based cybersecurity company. Amid the confusion regarding cybercrime at the time of the pandemic, the company is trying to keep pace with hackers and bolster offerings against cybercrimes. It was up 7.6% on Jul 8.
Peloton Interactive Inc (PTON - Free Report) – Amplify Online Retail ETF (IBUY - Free Report) (3.34%)
Peloton is an American exercise equipment and media company that was founded in 2012 and launched with help from a Kickstarter funding campaign in 2013. Shares of Peloton are soaring as demand for the company's connected home-fitness gear and classes remains high. It added 2.8% on Jul 8.
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