The Dow Jones Industrial Average hit a record high on Monday while the Nasdaq gained ground, but some of 2020’s hot technology growth stocks — such as Zoom Video Communications (ZM) and Square (SQ) — fell on profit-taking. Zoom stock fell 4.1% to near 360 while Square stock slipped a fraction.
Shopify (SHOP) and Square also were among tech growth stocks that pulled back. Shopify stock retreated 4% to near 1,178. Square stock dipped to near 227.
Can Zoom Stock, Others Outperform In 2021?
Helped by the likes of Zoom stock, software outperformed the market for the fourth straight year during the coronavirus pandemic. Analysts are debating whether the sector makes it five in a row in 2021, with many software growth stocks trading at high multiples.
Cybersecurity stocks have rallied amid reports that Russian hackers accessed U.S. government computer networks via network management software provided by SolarWinds (SWI). Cybersecurity stocks such as Palo Alto Networks (PANW), Zscaler (ZS) and Okta (OKTA) pulled back on Monday.
Payment stocks PayPal Holdings (PYPL) and Square wavered on Monday despite Bitcoin’s surge to $28,000. PayPal and Square have enabled customers to trade the cryptocurrency. PayPal and Square also have been battling in digital wallet technology.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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