6 Reasons This Tech Bubble Is Bursting
Some of the hottest stocks on the market are technology stocks that have had years of potential growth brought forward by the COVID-19 pandemic. Zoom Video Communications (NASDAQ: ZM) became a household name, Shopify (NYSE: SHOP) has exploded onto the scene, and names like Tesla (NASDAQ: TSLA), Square (NYSE: SQ), and Wayfair (NYSE: W) have all seen their stock prices at least double this year. And it's partly because investors think the pandemic is accelerating the adoption of key technologies in society.
Before you assume these companies will grow for the foreseeable future, it's worth considering what the downside could be if life returns to a more normal state in 2021. Will you still be excited to set up a Zoom happy hour with friends and order a burger and fries from DoorDash before an at-home workout on your Peloton (NASDAQ: PTON) bike? Or are you going to cancel your Zoom subscription and go to your local watering hole to hang out with friends again, just like you did in February?
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Source Fool.com
