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Worried About a Stock Market Crash? Buy These Recession-Proof Tech Stocks

Worried About a Stock Market Crash? Buy These Recession-Proof Tech Stocks

Sure, the stock market is booming now, but remember that it was also booming in January of this year — right before the quickest market crash of all time. Meanwhile, Congress is at an impasse on a new stimulus deal, even though leading Federal Reserve officials are pleading for more fiscal help.

A sudden market turnaround isn’t out of the realm of possibility. You can prepare for it and reduce your risk by investing in recession-resistant businesses. Investing in recession-proof stocks lets you sleep well at night and hold for the long-term, no matter what craziness is going on in the real economy. While no stock is 100% immune to the real economy, some companies have better business models for dealing with downturns, even in the high-flying technology sector.

Some recession-resistant companies offer needed goods or services that must be bought in good times and bad. Others cater to a mass-market audience, providing a good or service at lower costs than competitors. That second type of stock may actually benefit during recessions by scooping up market share.

That’s why the following four recession-resistant tech stocks look like fine buys today, even if the stimulus lags and the economy double-dips.

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Amazon

It’s Prime Day! That means deals, deals, deals on a wide variety of goods and services from Amazon (NASDAQ: AMZN), the dominant player in U.S. e-commerce. Amazon was the first mover in e-commerce. Today, its massive scale and distribution network allow it to offer unbeatable selection, prices, and one-day delivery, which the company rolled out last year.

Even in tough times, it’s really hard to give up your Amazon Prime membership, which counted more than 150 million members worldwide as of last year. Given the importance of Amazon’s services amid the pandemic, that number is

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Rakuten Mobile signs deal with STC to boost OpenRAN tech

Rakuten Mobile signs deal with STC to boost OpenRAN tech

 

Japanese operator Rakuten Mobile has signed a Memorandum of Understanding (MoU) with Saudi Telecom Company (STC) with the aim of collaborating in the field of innovation and strategic mobile technology.

Under the terms of the deal, the two companies will explore future opportunities to collaborate in various technology domains, including, fully autonomous digital platform serving telecommunication cloud network and OpenRAN deployment options for greenfield and brownfield use cases.

Both operators said they aim to accelerate the delivery of mobile network services through the use of OpenRAN mobile access technology.

“This MoU aims to expand our global partnerships and help diversify our strategic growth. We are confident this MoU will bring tangible results in terms of developing a new advance technology strategy and accelerating the early deployment of novel and sophisticated services,” said Nasser Al Nasser, Group CEO of STC.

“We are very excited about collaborating with STC and sharing our know-how of building new-generation telecommunication infrastructure,” said Mickey Mikitani, chairman and CEO of Rakuten and CEO of Rakuten Mobile. “We believe that our open architecture and advanced OpenRAN technologies will help define a new generation of operators who are ideally positioned to place advanced customer experience and differentiated profitable services at the center of their offering.”

Last month, Rakuten Mobile inked an agreement with Spanish carrier Telefonica to research and conduct lab tests and trials to support OpenRAN architectures, including the role of the AI in the RAN Networks. Under the partnership, both companies will also jointly develop proposals for optimal 5G RAN architecture and OpenRAN models.

Rakuten Mobile launched its commercial mobile operations in April this year, becoming the fourth mobile operator in Japan.  Rakuten offers its mobile services through a cloud-native, software-centric and fully virtualized mobile network.

In September, Rakuten Mobile announced the availability of its commercial 5G

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Nasdaq soars as tech stocks lead a market rally

Nasdaq soars as tech stocks lead a market rally

Wall Street rallied Monday with tech stocks leading the way. All three major stock indexes soared higher.



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© Michael Nagle/Bloomberg/Getty Images


The Nasdaq Composite was the strongest performer, rallying 3.2% in the mid-afternoon.

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The Dow was up 1.1%, or 300 points, and the S&P 500 climbed 2%.

All three benchmarks inched closer to record territory once again. The Nasdaq and S&P 500 stand to beat their closing level from early September, the Dow’s last record finish was in pre-pandemic times.

Shares of Apple were among the top performers in both indexes. The tech giant is slated to announce its new iPhone on Tuesday after weeks of pandemic-related delays. Apple stock traded nearly 7% higher.

Meanwhile, shares of Nasdaq-listed software company Twilio rallied more almost 8% after the company announced its intention to buy data start-up Segment for $3.2 billion.

Software stocks look to be getting out of the rut that dominated tech stocks in September, said Paul Hickey from Bespoke, and Monday’s rally is proof of that.

Otherwise, the Columbus Day holiday on Monday meant a more quiet day in terms of economic news, but third quarter earnings season is just around the corner. The season kicks off with America’s big banks, including Citigroup and JPMorgan starting to report on Tuesday.

Analysts at Goldman Sachs think earnings will paint an uneven picture of corporate America, as some businesses recovered from a disastrous second quarter while others are still struggling.

Besides earnings, the election is also fast approaching with only three weeks left to go.

“Investors are focused on the implications of a ‘Blue Wave’ election given that the probability of a Democratic sweep has climbed to 60% from 47% one month ago,” the analysts said in a note to clients.

Investors will also have to keep an eye

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Global economic watchdog says talks on taxing big tech will stretch into 2021

Global economic watchdog says talks on taxing big tech will stretch into 2021

A global economic watchdog on Monday said talks on how to overhaul taxes on big tech companies will stretch into 2021 after the coronavirus pandemic and “political issues” prevented the group from wrapping up by its end of the year deadline. 

The Organization for Economic Cooperation and Development (OECD) on Tuesday announced a two-pillar proposal to overhaul how big tech companies are taxed. The proposal was approved by a group with participants from 137 countries and jurisdictions. 

The proposal’s first pillar includes a blueprint to establish rules on where taxes should be paid and a way of sharing taxing rights between countries. The second pillar proposes establishing a global minimum tax for tech companies. 

The plan will be presented to Group of 20 finance ministers next week with the goal of putting the plan in place by the middle of next year if an agreement is reached, said Angel Gurria, the OECD’s secretary-general. 

Gurria, during a press conference from Paris, cited difficulties that arose from the coronavirus pandemic, including restrictions on in-person meetings, as well as “political issues” for the delay in the plan which OECD had previously said would be done before the end of 2020. 

The Trump administration reportedly pulled out of negotiations in June and threatened to impose tariffs on imports from countries that impose the taxes.

On Monday, however, Gurria said that “every single country” is participating in the effort, with “no exceptions.” 

He warned that if a proposal is not agreed on by countries it could lead to a trade war, which he said would cause issues for countries, especially amid ongoing economic recovery efforts due to the coronavirus pandemic. 

“The alternative to finding an agreement would be a trade war,” he said. “Now, a trade war is always bad, a trade war is always

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Consumer tech startup boAT powers ahead as India goes vocal for local

Consumer tech startup boAT powers ahead as India goes vocal for local

When Sameer Mehta and Aman Gupta launched boAt in 2016, the goal was to avoid another me-too sourced from China product “without having a clear vision on the design and Intellectual Property”.

Today, boAt is present in 5,000 retail stores, supported by 20 distributors. The startup claims to be clocking sales of over 10,000 units a day, and four million units per year, and says it has served 20 million Indians so far.

In FY 2020, it clocked a revenue of Rs 500 crore, up by 108.8 percent from Rs 239.44 crore in FY 2019, while the business has been profitable for five years straight.

Behind boAt’s growth is a consumer-first approach, which has made the startup one of the most sought-after youth brands in India. Almost 80 percent of its sales coming from ecommerce channels such as Amazon and Flipkart.

By paying heed to millions of customers’ reviews online, boAt was able to learn what other brands did not want to learn —that Indians loved a product that can be part of their lifestyle.

“Our hypothesis was to listen to the consumer and to address their needs. In the D2C world, the consumer’s feedback is instant and that is what we listen to build our brand,” Aman tells YourStory.

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According to Aman, at the time boAt launched, Indian players couldn’t compete with Chinese brands and their financial muscle.

“That is why we focused on product quality and starting with small numbers. We started our business by launching indestructible charging cables in 2015, and realised that owning the IP in a brand is very important rather than just sourcing products from China, which a lot of other brands

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