The coronavirus pandemic has wreaked havoc across the global economy, and the technology sector has not been immune. Supply chains have come under pressure, and demand for many types of hardware and services has contracted as businesses postpone investment and consumers struggle. We have been meeting and collaborating—more recently, virtually—with the management teams of many of our holdings more than ever before as they seek to adjust to these unprecedented challenges.
But along with challenge has come opportunity—both for companies and investors. Many leading technology firms have continued to grow revenues and profits during the crisis, and some have even seen their stock prices reach new highs. As individuals around the globe work, shop, and consume entertainment at home, companies that provide the infrastructure for the online economy have seen demand for their services boom, allowing them to extend their dominance.
While some of the shift online is likely to reverse as shopping malls, offices, and movie theaters reopen, we suspect that many of the changes we have seen in recent months will remain permanent. Working from home full time will likely become more common, for example, especially now that 300 million people have experienced videoconferencing through Zoom. And many millions more have had their first experiences shopping for groceries online and seem likely to value the convenience even after health concerns have abated. In our view, the current crisis—like many before it—has only accelerated changes that were already underway.
For professional clients only. Not for further distribution.
This material is being furnished for general informational purposes only. The material does not constitute or undertake to give advice of any nature, including fiduciary investment advice, and prospective investors are recommended to seek independent legal, financial and tax advice before making any investment decision. T. Rowe Price group of companies including T. Rowe Price Associates, Inc. and/or its affiliates receive revenue from T. Rowe Price investment products and services. Past performance is not a reliable indicator of future performance. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.
The material does not constitute a distribution, an offer, an invitation, a personal or general recommendation or solicitation to sell or buy any securities in any jurisdiction or to conduct any particular investment activity. The material has not been reviewed by any regulatory authority in any jurisdiction.
Information and opinions presented have been obtained or derived from sources believed to be reliable and current; however, we cannot guarantee the sources' accuracy or completeness. There is no guarantee that any forecasts made will come to pass. The views contained herein are as of the date noted on the material and are subject to change without notice; these views may differ from those of other T. Rowe Price group companies and/or associates. Under no circumstances should the material, in whole or in part, be copied or redistributed without consent from T. Rowe Price.
The material is not intended for use by persons in jurisdictions which prohibit or restrict the distribution of the material and in certain countries the material is provided upon specific request.
It is not intended for distribution to retail investors in any jurisdiction.
This material is issued and approved by T. Rowe Price International Ltd, 60 Queen Victoria Street, London, EC4N 4TZ which is authorised and regulated by the UK Financial Conduct Authority. For Professional Clients only.
© 2020 T. Rowe Price. All rights reserved. T. ROWE PRICE, INVEST WITH CONFIDENCE, and the bighorn sheep design are, collectively and/or apart, trademarks or registered trademarks of T. Rowe Price Group, Inc.