San Jose — Silicon Valley tech companies are gaining value at a dramatic pace, demonstrating the prosperity of the region’s technology and life sciences industry despite the economic turmoil of the coronavirus.
From late March 2020, when the stock market hit its lowest point at the time of the COVID-19 outbreak, to the end of June 2021, when the most recent quarter ended, the combined market value of Silicon Valley companies more than doubled.
An amazing turnaround of the value of Silicon Valley and San Francisco public enterprises (a list dominated by technology and biotechnology companies) was revealed in a new report by the Silicon Valley Regional Institute, a research arm of joint venture Silicon Valley. .. A think tank based in San Jose.
“The pandemic wasn’t a retreat in Silicon Valley. It only increased the profitability of these companies,” said Russell Hancock, CEO of joint venture Silicon Valley. “Quarantine has become great for tech companies.”
Silicon Valley companies have plagued the leisure, hospitality, and personal services sectors such as restaurants, hotels, retail, salons, and the fitness industry by offering a range of services such as remote and conference calls. I was able to avoid.
“There was no recession in Silicon Valley,” Hancock said. “What happened is that we introduced artificial interventions to shut down parts of the economy. It’s a sad story and we haven’t recovered yet. But this amazing market The economy that created the increase in value was there before the closure began. “
The report measured changes in the value of public companies in Santa Clara County, Southern Alameda County, San Mateo County, and San Francisco. The survey period was from March 23, 2020 to June 30, 2021. The report was produced by Rachel Masaro, Head of Research at the Silicon Valley Area Studies Institute.
During this period of just over 15 months, the market value of public companies in these regions, roughly defined as Silicon Valley and San Francisco, surged 129.1%. This is more than double the value increase.
On the day of market lows in late March 2020, Silicon Valley and San Francisco companies plunged to $ 5.5 trillion in COVID era lows, derived from the combined value of these organizations.
By the end of the trading day on June 30, this year, the total market value of companies in these regions had skyrocketed to $ 12.6 trillion.
If the stocks of companies in the two regions could be purchased as a single entity, investors would have made far greater profits during the study period compared to the two major Wall Street indexes.
In the same 15 months, the technology-focused Nasdaq Composite index rose 111.4%, more than doubling. The value of the extensive S & P 500 has increased by 92%.
“It was more than a Silicon Valley tech company,” Hancock said. “Keep in mind that our biotechnology and life sciences industry is at the forefront of vaccines, large-scale computing, contact tracing, and quarantine.”
The market value boom was driven by some of the largest Silicon Valley-based companies, a report by an area studies institute determined.
“Almost three-quarters of the region’s market capitalization is concentrated in just 7% of public companies, 23 out of more than 300,” Massaro wrote in the report. “Apple and Google each have a market capitalization of about $ 2 trillion.”
https://www.siliconvalley.com/2021/07/16/covid-boomtown-silicon-valley-company-tech-value-soar-stock-economy/ Silicon Valley’s corporate value soars, supported by technology – Silicon Valley