Swissquote, a multi-asset online trading firm, has introduced the Tech Giants theme. The new product is the second announcement by the company in as many days, after yesterday’s debut of the Semiconductor Industry Portfolio. These moves show the company’s focus on growing its Themes Trading services. Companies with a large market valuation and a stronghold in their particular technological niches are the focus of the Tech Giants investment strategy.
Examples of these companies are in the fields of e-commerce, online advertising, software development, consumer electronics, gaming, cloud computing, media streaming, autonomous vehicles, artificial intelligence, the Internet of Things, the smart home, and social networking.
Swissquote Tech Giants Theme and a global tech lull
When making a theme investment, investors consider future trends and predictability to better position their portfolio for sustainable growth and profits. The technology sector’s importance to the world economy guarantees that it will continue to draw capital in the years to come. Recent advances in these areas have positioned cloud computing, artificial intelligence, machine learning, autonomous mobility, healthcare, quantum computing, drone delivery, and the metaverse as promising new areas of technological exploration.
Despite Swissquote’s emphasis on technology, 2022 has not been a banner year for the tech industry as a whole. The global economy has felt the repercussions of Russia’s invasion of Ukraine and the delayed recovery following Covid 19. Also, the stock market’s ups and downs can be attributed to inflation worries, rising interest rates, and geopolitical concerns. According to Crunchbase News, more than 38,000 people have lost their jobs in the U.S. tech industry since the beginning of the year.
Few large IT firms have avoided layoffs in the past year. Twitter, Tesla, Shopify, Microsoft, and Netflix are just some of the major tech companies that have had layoffs, and some of them have done it more than once. Even startups are under stress this year, as investor enthusiasm cools. Startups are reporting that it is much harder to attract new capital in this climate.
Also, valuations have begun to fall, especially at the late stage. Nonetheless, Swissquote and other firms believe that the current slowdown is just temporary and that the industry will resume its upward trend. The company is bullish that the tech industry will soon turn around.
Peter Rosenstreich, Swissquote’s Head of Investment Product comments:
“Market conditions and overvaluations prevented us from launching an AMC directly on Big Tech. However, the recent correction has made fundamentals more attractive; second-quarter results were solid despite consumer demand worries, and expectations that the Federal Reserve will slow interest rate hikes suggest risk-taking will return.”