In fact, tech stocks have outperformed the wider market since the coronavirus (COVID-19) pandemic spurred record sell-offs in March. The FANG+ index, a set that includes the likes of Apple, Alibaba, Tesla, and Twitter, is actually up by almost 10% year-to-date. On the other hand, the S&P 500 index — a popular collection of 500 stocks that represents the overall US market — is down by just under 14% over the same period. “[Big tech stocks] are the old reliable and old standby for portfolio managers,” one portfolio manager told the WSJ. “Nobody is going to get fired for adding Apple stock in a downturn like this.” However, Hard Fork reported that Wall Street gurus Goldman Sachs had recently downgraded Apple stock to a “sell.” The firm’s analysts predicted that iPhone shipments would slow by 36% later this year, which could see its stock price drop nearly 20% from current prices. So, the markets generally appear confident that tech’s biggest can thrive in the new coronavirus-inspired consumer landscape, but the truth will only come out in their Q1 earnings reports, which are scheduled to start dropping over the next few weeks.
