Buy Microsoft: Covid-19 is no crisis for big tech stocks

The global lockdowns have greatly accelerated changes in how we live and work. Tech stocks are set top profit – with Microsoft leading the way.

Woman walking in front of a Microsoft shop © Eduardo MunozAlvarez/VIEWpress via Getty Images
Microsoft: having a good lockdown © Getty
(Image credit: Woman walking in front of a Microsoft shop © Eduardo MunozAlvarez/VIEWpress via Getty Images)

As Covid-19 spread, the world went remote. People were forced into isolation, physical interaction outside households was outlawed and everything had to be done from afar. This disruption has offered investors their clearest view yet of how the world will adapt and integrate technology. And given tech stocks are trouncing everything else this year, they like what they’re seeing.

To appreciate tech right now means recognising that it’s serving two needs. There’s the immediate surge in demand so that things can still get done. Online videoconferencing is an obvious one, because people can’t get together for business meetings. Then there’s the more far-reaching paradigm shift in which the way we’ve been doing things changes for good across an industry or society as a whole. Working from home, for example, will become the norm for many because it’s effective and cheaper than renting office space. So tech companies are needed to help businesses bring together staff, documents and processes anywhere to build virtual offices.

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Investment columnist

Stephen Connolly is the managing director of consultancy Plain Money. He has worked in investment banking and asset management for over 30 years and writes on business and finance topics.