Tech stocks carried the stock market higher in 2020 as the COVID-19 pandemic caused billions of people to shelter in place and gather in cyberspace instead, but experts say to expect more uneven performance in 2021 as organizations transition from crisis mode to long-term plans.
The forecast looks a lot less cloudy going into 2021, Lopez said, as many businesses reconsider the moves they made during 2020’s rush into the cloud. Big tech winners in 2020 Experts told MarketWatch that cloud computing and software will continue to be a focus for investors and enterprise customers, but returns will likely be less predictable. Here’s what they expect for the hottest tech sectors:
“We think some people have made some less-than-optimal decisions in 2020,” Guarini told MarketWatch. “If you’re not making the right decisions, if you’re just making rash decisions so you just keep operating, eventually those are going to catch up with you.” As the world moves to get out from under the shadow of COVID-19, Bernstein analyst Stacy Rasgon said he’s “more constructive on the long-term prospects for semis given the increasing importance of the sector, both functionally and strategically.”