Technology companies experienced an unprecedented boom during the coronavirus pandemic, as it allowed people and companies to operate without major negative impacts, even with restrictions. And they have been duly rewarded by investors on the stock markets. They ended last year at their all-time highs.

But there was probably some overestimation of their strength. Already in the final days of 2021, there were signs that investors were about to take profits on the technologies. The first days and weeks of trading in the new year only proved this, and the technology sector went en bloc into the red. The war in Ukraine impacts European players in particular. Of the BCM Top 10 European Technology Companies, the value of only one of the ten largest technology companies in Europe rose in value, namely Medtronic from Ireland. In March, it took over the leadership of the ranking, when at the end of 2021, according to BCM Begin Capital Markets, the most valuable European technology company was the German software company SAP.

SAP has lost more than 18 percent of its market value since the beginning of the year, while Medtronic has added 8.6 percent. While SAP's market capitalization was more than 152 billion euros, it is now just over 125 billion. In contrast, Medtronic enjoyed an increase in its market value from 123.1 to 133.7 billion euros. *

Winners and losers among European technology companies (development of market capitalization since the beginning of 2022, in %)

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Source: BCM Begin Capital Markets based on data from individual stock exchanges

Other companies such as Siemens, Spotify and BioNTech have also fallen. Perhaps the biggest surprise is the decline in the market capitalization of the biotech company BioNTech, which has lost over 30 percent of its value since the beginning of the year. Only Spotify has fared worse, losing 36.6 percent. On the other hand, among those that have suffered the smallest losses are the electrical engineering group ABB (-3.5 percent) and the Czech software company Avast (-6 percent). *

It will be very interesting to see how the sector develops further in the context of the war conflict in Ukraine. What is certain is that one day the war will end. And when it is over, it will not only be Europe that will be dealing with the reconstruction of this country. And this will be a huge opportunity for companies that demonstrate their ability to participate effectively in the reconstruction of Ukraine. Technology companies will undoubtedly be among them [1].

Market capitalization of selected European technology companies

Source: BCM Begin Capital Markets based on data from individual stock exchanges

* Past performance is no guarantee of future results

[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or the current economic environment, which may change. Such statements are not guarantees of future performance. They include risks and other uncertainties that are difficult to predict. The results may differ materially from those expressed or implied in any forward-looking statements.