On April 2, Donald Trump announced a heightened trade war, which led to a sharp decline in stock and cryptocurrency markets. Between the market close on April 2 and April 8, the S&P 500 fell by 12% and the NASDAQ tumbled by 13%. Given that domain registrars and hosting companies primarily deal in digital goods, one might expect them to withstand the market turmoil better than companies dealing with physical products.
Interestingly, some domain companies have shown resilience compared to the broader market decline. Despite this, there’s a concern that they could still be adversely affected by the trade war.
The performance of key domain stocks between April 2 and April 8 was as follows:
- Tucows (NASDAQ: TCX): Down 16%, with this company also owning a broadband subsidiary.
- GoDaddy (NYSE: GDDY): Down 10%.
- Team Internet Group (London AIM: CNIC): Down 10%.
- Verisign (NASDAQ: VRSN): Down 8%.
- NameSilo (OTC: URL.CN): Down 2%.
As of the recent trading day, Tucows has dropped another 5%, with Verisign and GoDaddy also experiencing further declines. These shifts highlight the ongoing volatility in the market and the challenges domain companies face amid economic uncertainties.
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