London- Prices of information and technology shares stabilized this week, following seven trading sessions that witnessed consecutive rise by which the index sector reached a new historic level.
S&P index of this sector recorded an unprecedented level of 995 points last week before it dropped on Thursday to around 987 points, thus the index rose around 22 percent since the beginning of 2017 until August 2.
Silicon Valley analysts stated that the “sector has overcome the tension that resulted from the election of Donald Trump as the US president, especially when he revealed his intention to reduce the number of immigrants entering the US. Tech and internet firms were the first to object over this because their development and innovation depend on attracting talents from abroad.”
Analysts added that after the relapse of this threat, Silicon Valley firms shares witnessed additional rise that is still ongoing, because there is a clear vision in this sector unlike others. This is also supported by the growing profits not to mention optimistic forecasts made by analysts for the upcoming years.
S&P index, however, has changed in shape and content in 17 years – some firms went bankrupt, others lost its relative significance such as computers and phones industry firms while other firms integrated together. Meanwhile, firms of artificial intelligence, smartphones, social network, online payment, e-commerce and cloud computing were advancing.
Analysts saw that there has been a radical transformation in 17 years from the economy of computers and telecommunications industry to the internet of things. Intel value is now three times less and Cisco is less with 60 percent compared to its value in 2000.
In one year, Apple value rose 50 percent, Alphabet’s Google increased 18 percent, Microsoft inched up 28 percent, Facebook rose 37 percent and Amazon 31 percent.