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June 15, 2020, 4:13 p.m. EDT

Zoom Video closes at record as tech stocks benefiting from pandemic rally on infection rebound

Broader market pressured as COVID-19 cases surge in China, U.S.

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By Wallace Witkowski, MarketWatch


Zoom Video

Shelter-in-place stocks rallied Monday, outperforming the broader market, with shares of Zoom Video Communications Inc. closing at a new record on a resurgence of new COVID-19 cases both at home and abroad.

Zoom Video /zigman2/quotes/211319643/composite ZM -2.43%  shares closed at a record $239.02 for a 8.9% gain Monday, after touching an all-time intraday high of $239.59. In the meantime, the S&P 500 index /zigman2/quotes/210599714/realtime SPX -0.04%  closed up 0.8% and the tech-heavy Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP -0.30%  finished up 1.4%, rebounding from losses early in Monday’s session.

In the U.S., COVID-19 deaths topped 115,000 amid a new spike in cases in states like Florida and Texas, where shelter-in-place measures have been gradually relaxed, while in China, a spike in new cases in Beijing prompted the closure of the city’s largest wholesale food market.

In a note Monday, BofA Securities highlighted tech stocks that were benefiting from higher spending because of COVID-19 and singled out Zoom as leading in terms of name recognition when it comes to videoconferencing software.

“Modern and video-first solutions like Zoom quickly rose to the occasion and have become household names,” BofA said. “Zoom has virtually achieved verbal dominance over an entire category of digital experience, similar to Google’s dominance of the search market.”

In addition to Zoom, BofA highlighted Microsoft Corp. /zigman2/quotes/207732364/composite MSFT -0.98%  and RingCentral Inc. /zigman2/quotes/204236620/composite RNG -2.38% , both of which also compete in the videoconferencing space.

Other beneficiaries from the COVID-19-prompted tech migration are Salesforce.com Inc. /zigman2/quotes/200515854/composite CRM -0.69% , ServiceNow Inc. /zigman2/quotes/202729495/composite NOW -0.16% , Splunk Inc. /zigman2/quotes/203060494/composite SPLK -1.09% , Twilio Inc. /zigman2/quotes/205796518/composite TWLO +0.86% , Atlassian Corp. /zigman2/quotes/207177221/composite TEAM -0.20% , Dynatrace Inc. /zigman2/quotes/213490072/composite DT -1.34%  , Coupa Software Inc. /zigman2/quotes/209884077/composite COUP +0.15% , Avalara Inc. /zigman2/quotes/204268432/composite AVLR +1.28% , Bill.com Holdings Inc. /zigman2/quotes/215406166/composite BILL +1.61% and Everbridge Inc. /zigman2/quotes/202832262/composite EVBG +0.49% ,  according to BofA.

Based on a survey of 500 representatives in IT, engineering, sales, marketing and management, BofA said that about 47% of respondents said they expect remote work to become more of a normal practice post-pandemic.

Shares of other cloud-based software companies and cybersecurity companies that support shelter-in-place/work-from-home infrastructure also outperformed the broader market.

Shares of Okta Inc. /zigman2/quotes/210420951/composite OKTA -2.41%  , PagerDuty Inc. /zigman2/quotes/210571191/composite PD +0.74%  , Cloudera Inc. /zigman2/quotes/209152367/composite CLDR -0.09%  , FireEye Inc. /zigman2/quotes/204730283/composite FEYE -1.72%  , Fortinet Inc. /zigman2/quotes/205733290/composite FTNT -1.55% , Palo Alto Networks Inc. /zigman2/quotes/207599953/composite PANW +0.07%  , Proofpoint Inc. /zigman2/quotes/207816916/composite PFPT -0.06%  and SailPoint Technologies Holdings Inc. /zigman2/quotes/208922889/composite SAIL -1.69% all finished higher than the broader market Monday.

For the year, the ETFMG Prime Cyber Security ETF /zigman2/quotes/207892345/composite HACK -0.56%  is up 5%, the First Trust Cloud Computing ETF /zigman2/quotes/205187458/composite SKYY +0.15%  is up 17%, and the iShares Expanded Tech-Software Sector ETF /zigman2/quotes/201870252/composite IGV -0.76%  is up 16%, while the S&P 500 index /zigman2/quotes/210599714/realtime SPX -0.04%  is down 5%, and the tech-heavy Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP -0.30%   is up 8%.

/zigman2/quotes/211319643/composite
US : U.S.: Nasdaq
$ 428.90
-10.70 -2.43%
Volume: 4.98M
Nov. 23, 2020 11:45a
P/E Ratio
546.97
Dividend Yield
N/A
Market Cap
$125.03 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,556.22
-1.32 -0.04%
Volume: 909.16M
Nov. 23, 2020 11:45a
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
11,818.99
-35.98 -0.30%
Volume: 2.40M
Nov. 23, 2020 11:45a
loading...
/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 208.33
-2.06 -0.98%
Volume: 8.73M
Nov. 23, 2020 11:45a
P/E Ratio
33.67
Dividend Yield
1.07%
Market Cap
$1590.65 billion
Rev. per Employee
$877,393
loading...
/zigman2/quotes/204236620/composite
US : U.S.: NYSE
$ 287.45
-7.02 -2.38%
Volume: 667,644
Nov. 23, 2020 11:45a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$26.39 billion
Rev. per Employee
$382,081
loading...
/zigman2/quotes/200515854/composite
US : U.S.: NYSE
$ 256.26
-1.78 -0.69%
Volume: 2.08M
Nov. 23, 2020 11:45a
P/E Ratio
100.44
Dividend Yield
N/A
Market Cap
$234.82 billion
Rev. per Employee
$379,486
loading...
/zigman2/quotes/202729495/composite
US : U.S.: NYSE
$ 517.24
-0.82 -0.16%
Volume: 714,191
Nov. 23, 2020 11:43a
P/E Ratio
146.59
Dividend Yield
N/A
Market Cap
$101.07 billion
Rev. per Employee
$333,665
loading...
/zigman2/quotes/203060494/composite
US : U.S.: Nasdaq
$ 196.78
-2.16 -1.09%
Volume: 257,492
Nov. 23, 2020 11:44a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$31.91 billion
Rev. per Employee
$563,441
loading...
/zigman2/quotes/205796518/composite
US : U.S.: NYSE
$ 300.86
+2.55 +0.86%
Volume: 1.24M
Nov. 23, 2020 11:45a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$45.04 billion
Rev. per Employee
$390,523
loading...
/zigman2/quotes/207177221/composite
US : U.S.: Nasdaq
$ 208.02
-0.42 -0.20%
Volume: 776,081
Nov. 23, 2020 11:45a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$51.94 billion
Rev. per Employee
$328,953
loading...
/zigman2/quotes/213490072/composite
US : U.S.: NYSE
$ 36.09
-0.49 -1.34%
Volume: 791,410
Nov. 23, 2020 11:45a
P/E Ratio
130.28
Dividend Yield
N/A
Market Cap
$10.32 billion
Rev. per Employee
$243,336
loading...
/zigman2/quotes/209884077/composite
US : U.S.: Nasdaq
$ 314.69
+0.48 +0.15%
Volume: 216,481
Nov. 23, 2020 11:43a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$21.63 billion
Rev. per Employee
$312,564
loading...
/zigman2/quotes/204268432/composite
US : U.S.: NYSE
$ 170.29
+2.15 +1.28%
Volume: 164,655
Nov. 23, 2020 11:44a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$14.22 billion
Rev. per Employee
$263,375
loading...
/zigman2/quotes/215406166/composite
US : U.S.: NYSE
$ 111.06
+1.76 +1.61%
Volume: 529,142
Nov. 23, 2020 11:44a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$8.59 billion
Rev. per Employee
$255,016
loading...
/zigman2/quotes/202832262/composite
US : U.S.: Nasdaq
$ 124.28
+0.61 +0.49%
Volume: 70,814
Nov. 23, 2020 11:41a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.32 billion
Rev. per Employee
$211,901
loading...
/zigman2/quotes/210420951/composite
US : U.S.: Nasdaq
$ 227.04
-5.61 -2.41%
Volume: 727,866
Nov. 23, 2020 11:45a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$29.80 billion
Rev. per Employee
$260,706
loading...
/zigman2/quotes/210571191/composite
US : U.S.: NYSE
$ 31.39
+0.23 +0.74%
Volume: 235,190
Nov. 23, 2020 11:43a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$2.48 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/209152367/composite
US : U.S.: NYSE
$ 11.29
-0.01 -0.09%
Volume: 1.10M
Nov. 23, 2020 11:45a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$3.53 billion
Rev. per Employee
$291,226
loading...
/zigman2/quotes/204730283/composite
US : U.S.: Nasdaq
$ 14.89
-0.26 -1.72%
Volume: 3.56M
Nov. 23, 2020 11:45a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$3.45 billion
Rev. per Employee
$261,515
loading...
/zigman2/quotes/205733290/composite
US : U.S.: Nasdaq
$ 116.29
-1.83 -1.55%
Volume: 277,047
Nov. 23, 2020 11:43a
P/E Ratio
43.34
Dividend Yield
N/A
Market Cap
$19.17 billion
Rev. per Employee
$304,462
loading...
/zigman2/quotes/207599953/composite
US : U.S.: NYSE
$ 292.21
+0.20 +0.07%
Volume: 441,057
Nov. 23, 2020 11:44a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$27.80 billion
Rev. per Employee
$425,306
loading...
/zigman2/quotes/207816916/composite
US : U.S.: Nasdaq
$ 97.22
-0.06 -0.06%
Volume: 290,968
Nov. 23, 2020 11:44a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$5.61 billion
Rev. per Employee
$263,714
loading...
/zigman2/quotes/208922889/composite
US : U.S.: NYSE
$ 43.09
-0.74 -1.69%
Volume: 325,388
Nov. 23, 2020 11:45a
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$3.98 billion
Rev. per Employee
$247,016
loading...
/zigman2/quotes/207892345/composite
US : U.S.: NYSE Arca
$ 48.76
-0.27 -0.56%
Volume: 57,512
Nov. 23, 2020 11:33a
loading...
/zigman2/quotes/205187458/composite
US : U.S.: Nasdaq
$ 85.31
+0.13 +0.15%
Volume: 243,859
Nov. 23, 2020 11:39a
loading...
/zigman2/quotes/201870252/composite
US : U.S.: Cboe BZX
$ 324.40
-2.50 -0.76%
Volume: 258,978
Nov. 23, 2020 11:44a
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,556.22
-1.32 -0.04%
Volume: 909.16M
Nov. 23, 2020 11:45a
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
11,818.99
-35.98 -0.30%
Volume: 2.40M
Nov. 23, 2020 11:45a
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Wallace Witkowski is a MarketWatch news editor in San Francisco. Follow him on Twitter @wmwitkowski.

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