Will QQQ Stock and Tech Sector Go Hand in Hand?

As humans have evolved, technology has progressed at a much faster pace. The current state of the planet is that everything we come in contact with, has something to do with some kind of tech. This holds a bright future for ETFs like Invesco QQQ Trust, Series 1 (NASDAQ: QQQ). QQQ stock has lost 30% in its value since January 2022 and currently trades at $280.53 at the publication time.

The company has a prime focus on the IT industry with over half of their holdings comprising stocks belonging to this sector, followed by the communication industry. Their top holdings in the portfolio include Apple (12.8%), Amazon (5.13%), Tesla (3.08%), Nvidia (3.21%), Meta Platforms (2.21%) and more.

Invesco was founded in 1978 in Atlanta. The company reported $1.6 Trillion Assets Under Management in December 2021. Currently, the QQQ ETF has around $153 Billion AUM. In March 2020, the pandemic triggered the market crash which affected the QQQ stock considerably.

QQQ Stock Price Action

QQQ stock went through a bumpy path this year which raises the question for company’s performance in 2023. If we take a closer look at the chart, it shows how the price changed support from around $280 – $285 range in May 2022 to around $270 – $275 the following month. 

It maintained a positive momentum for a couple of months and started declining in August 2022 after trading at the monthly high of $334. The slippage led the QQQ stock price to change hands at a monthly low of $254 in October 2022. Price volatility stuck with the ETF in November 2022 and ended the month at $293. Currently, it has entered an active buyers zone according to the regression analysis which indicates a positive future momentum in the value.

Moving Ahead With Tech Advancements

As we have mentioned above, the ETF is more focused on the tech industry which hopefully leads the price to roll upwards in the market. According to the Bureau of Economic Analysis (BEA) data, the entire US market grew by 18% and tech between Q1 2020 to Q1 2021. Tech industry accounts for 47% of this growth in the nation. Consumer spending on the IT sector is estimated to reach $4.6 Trillion by 2023 out of which $1.36 Trillion is expected to go into new technologies.

Metaverse is another aspect where the companies are investing heavily, most notably Meta (NASDAQ: META), Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA) and more. Though many are still skeptical of the sector as there is no exact definition of the concept to this date.

Still, companies like Meta are highly optimistic on the metaverse, thanks to the vision Mark Zuckerberg, company’s CEO, holds. The organization is actively involved in the metaverse development. According to Business Insider, a media company, they have spent around $36 Billion on metaverse research.

They released their Meta Quest Pro in October 2022 for a price of $1,500 per piece. Apple is working on a similar technology and is expected to launch their VR goggles sometime in 2023. Nvidia unveiled the Omniverse cloud in September 2022 for developers and artists to design, operate and experience metaverse applications. Currently, Microsoft remains the biggest company by net worth working on metaverse development.

The organization holds $2.15 Trillion in net worth followed by Nvidia ($396 Billion), Meta ($325 Billion), Roblox ($18.42  Billion) and Unity ($13.82 Billion).

Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.