Page 20 - MUFG Spring 2021

Effects of COVID-19 pandemic on tech and telecom companies
REMOTE WORK, HOME SHELTERING, STORE CLOSURES, SUPPLY-CHAIN DISRUPTIONS, AND DECLINING AD EXPENDITURES AMONG LARGEST DRIVERS
By Ari Bensinger, Director
The coronavirus pandemic is affecting the revenue streams of technology and telecommunications companies in divergent ways, leading some to adopt new business models.
While COVID-19 adds a layer of uncertainty over the short- and medium-term outlook of many tech and telecom companies, secular trends for the overall sector remain favorable in the long term. We see rapidly rising wireline (cable- based) and wireless data traffic—as well as growing demand for semiconductors for use in electronic goods—as strong underlying growth drivers.
THE BENEFICIARIES OF REMOTE WORK, REMOTE LEARNING, AND HOME SHELTERING
The need for remote work and learning capabilities has fueled substantial growth in the use of Internet servers, cloud-based applications, online communication tools, and telecommunication infrastructure. This trend has benefited manufacturers, developers, and providers of related hardware, software and services, including data-center companies that operate and manage server hubs; developers of videoconferencing, online collaboration and
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messaging companies.
applications;
and telecom
MUFG TRANSACTION BANKING AMERICAS GROUP / SPRING 2021