Shares of technology companies fell as investors rotated into sectors considered less richly valued.
Skeptics warn that the robust growth rate and Covid-resistant business models of the technology sector cannot justify stratospheric valuations and could soon falter.
"Several technology mega caps...not only haven't seen a slowdown but are experiencing an acceleration in growth," said Lorenzo Di Mattia, manager of hedge fund Sibilla Global Fund, in a note to clients.
"Besides more online shopping, employees working from home needed to upgrade their hardware and software, companies needed to implement new software initiatives to be able to continue to do business online, and lastly lockdowns led the majority of people to spend more time on computers and phones."
But Mr. Di Mattia warned that the "upgrade cycle" of corporate IT systems facilitating "work-from-home" options may soon be completed.
"Now, with respect to cloud revenues, for example, there has been 'double counting' in the sense that people working from home have upgraded their technology, while offices have still been paying for this service as if people worked from the office."
As corporations rationalize office space and work forces, the Shares of electric-vehicle maker Nikola rallied after it secured an order for 2,500 electric garbage trucks from refuse giant Republic Services, less than a week after analysts complained about a lack of clarity on the business plan and order book. Shares of Nikola rival Tesla fell.
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