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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 +2.78%  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 +1.06%  closed up 0.8% and the tech-heavy Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +0.90%  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 +1.07%  and RingCentral Inc. /zigman2/quotes/204236620/composite RNG +5.68% , 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 +1.91% , ServiceNow Inc. /zigman2/quotes/202729495/composite NOW +1.86% , Splunk Inc. /zigman2/quotes/203060494/composite SPLK +3.96% , Twilio Inc. /zigman2/quotes/205796518/composite TWLO +1.62% , Atlassian Corp. /zigman2/quotes/207177221/composite TEAM +5.39% , Dynatrace Inc. /zigman2/quotes/213490072/composite DT +3.98%  , Coupa Software Inc. /zigman2/quotes/209884077/composite COUP +4.15% , Avalara Inc. /zigman2/quotes/204268432/composite AVLR +1.19% , Bill.com Holdings Inc. /zigman2/quotes/215406166/composite BILL +3.41% and Everbridge Inc. /zigman2/quotes/202832262/composite EVBG +3.87% ,  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 +6.17%  , PagerDuty Inc. /zigman2/quotes/210571191/composite PD +2.62%  , Cloudera Inc.  , FireEye Inc.  , Fortinet Inc. /zigman2/quotes/205733290/composite FTNT +1.40% , Palo Alto Networks Inc. /zigman2/quotes/207599953/composite PANW +2.90%  , Proofpoint Inc.  and SailPoint Technologies Holdings Inc. /zigman2/quotes/208922889/composite SAIL +0.59% all finished higher than the broader market Monday.

For the year, the ETFMG Prime Cyber Security ETF /zigman2/quotes/207892345/composite HACK +2.05%  is up 5%, the First Trust Cloud Computing ETF /zigman2/quotes/205187458/composite SKYY +1.29%  is up 17%, and the iShares Expanded Tech-Software Sector ETF /zigman2/quotes/201870252/composite IGV +1.64%  is up 16%, while the S&P 500 index /zigman2/quotes/210599714/realtime SPX +1.06%  is down 5%, and the tech-heavy Nasdaq Composite Index /zigman2/quotes/210598365/realtime COMP +0.90%   is up 8%.

/zigman2/quotes/211319643/composite
US : U.S.: Nasdaq
$ 110.97
+3.00 +2.78%
Volume: 2.78M
July 1, 2022 4:00p
P/E Ratio
26.92
Dividend Yield
N/A
Market Cap
$32.22 billion
Rev. per Employee
$621,398
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,825.33
+39.95 +1.06%
Volume: 2.18B
July 1, 2022 4:20p
loading...
/zigman2/quotes/210598365/realtime
US : Nasdaq
11,127.85
+99.11 +0.90%
Volume: 4.11M
July 1, 2022 4:27p
loading...
/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 259.58
+2.75 +1.07%
Volume: 21.65M
July 1, 2022 4:00p
P/E Ratio
27.08
Dividend Yield
0.96%
Market Cap
$1920.84 billion
Rev. per Employee
$928,663
loading...
/zigman2/quotes/204236620/composite
US : U.S.: NYSE
$ 55.23
+2.97 +5.68%
Volume: 1.96M
July 1, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.96 billion
Rev. per Employee
$436,350
loading...
/zigman2/quotes/200515854/composite
US : U.S.: NYSE
$ 168.20
+3.16 +1.91%
Volume: 4.48M
July 1, 2022 4:00p
P/E Ratio
163.25
Dividend Yield
N/A
Market Cap
$164.21 billion
Rev. per Employee
$379,924
loading...
/zigman2/quotes/202729495/composite
US : U.S.: NYSE
$ 484.36
+8.84 +1.86%
Volume: 1.50M
July 1, 2022 4:00p
P/E Ratio
440.89
Dividend Yield
N/A
Market Cap
$95.32 billion
Rev. per Employee
$370,653
loading...
/zigman2/quotes/203060494/composite
US : U.S.: Nasdaq
$ 91.96
+3.50 +3.96%
Volume: 961,839
July 1, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$14.23 billion
Rev. per Employee
$406,528
loading...
/zigman2/quotes/205796518/composite
US : U.S.: NYSE
$ 85.17
+1.36 +1.62%
Volume: 2.85M
July 1, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$15.23 billion
Rev. per Employee
$397,510
loading...
/zigman2/quotes/207177221/composite
US : U.S.: Nasdaq
$ 197.51
+10.11 +5.39%
Volume: 1.71M
July 1, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$47.85 billion
Rev. per Employee
$404,567
loading...
/zigman2/quotes/213490072/composite
US : U.S.: NYSE
$ 41.01
+1.57 +3.98%
Volume: 1.79M
July 1, 2022 4:00p
P/E Ratio
227.33
Dividend Yield
N/A
Market Cap
$11.31 billion
Rev. per Employee
$258,179
loading...
/zigman2/quotes/209884077/composite
US : U.S.: Nasdaq
$ 59.47
+2.37 +4.15%
Volume: 1.14M
July 1, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$4.31 billion
Rev. per Employee
$245,361
loading...
/zigman2/quotes/204268432/composite
US : U.S.: NYSE
$ 71.44
+0.84 +1.19%
Volume: 674,531
July 1, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$6.20 billion
Rev. per Employee
$167,952
loading...
/zigman2/quotes/215406166/composite
US : U.S.: NYSE
$ 113.69
+3.75 +3.41%
Volume: 1.60M
July 1, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$11.46 billion
Rev. per Employee
$374,324
loading...
/zigman2/quotes/202832262/composite
US : U.S.: Nasdaq
$ 28.97
+1.08 +3.87%
Volume: 697,291
July 1, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.10 billion
Rev. per Employee
$198,052
loading...
/zigman2/quotes/210420951/composite
US : U.S.: Nasdaq
$ 95.98
+5.58 +6.17%
Volume: 2.42M
July 1, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$14.26 billion
Rev. per Employee
$291,081
loading...
/zigman2/quotes/210571191/composite
US : U.S.: NYSE
$ 25.43
+0.65 +2.62%
Volume: 927,379
July 1, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$2.18 billion
Rev. per Employee
$319,133
loading...
/zigman2/quotes/205733290/composite
US : U.S.: Nasdaq
$ 57.37
+0.79 +1.40%
Volume: 2.63M
July 1, 2022 4:00p
P/E Ratio
74.90
Dividend Yield
N/A
Market Cap
$45.41 billion
Rev. per Employee
$351,810
loading...
/zigman2/quotes/207599953/composite
US : U.S.: Nasdaq
$ 508.25
+14.31 +2.90%
Volume: 1.17M
July 1, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$49.21 billion
Rev. per Employee
$493,679
loading...
/zigman2/quotes/208922889/composite
US : U.S.: NYSE
$ 63.05
+0.37 +0.59%
Volume: 947,817
July 1, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$5.91 billion
Rev. per Employee
$276,618
loading...
/zigman2/quotes/207892345/composite
US : U.S.: NYSE Arca
$ 46.74
+0.94 +2.05%
Volume: 109,236
July 1, 2022 4:00p
loading...
/zigman2/quotes/205187458/composite
US : U.S.: Nasdaq
$ 66.75
+0.85 +1.29%
Volume: 328,594
July 1, 2022 4:00p
loading...
/zigman2/quotes/201870252/composite
US : U.S.: Cboe BZX
$ 274.03
+4.42 +1.64%
Volume: 925,403
July 1, 2022 4:00p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,825.33
+39.95 +1.06%
Volume: 2.18B
July 1, 2022 4:20p
loading...
/zigman2/quotes/210598365/realtime
US : Nasdaq
11,127.85
+99.11 +0.90%
Volume: 4.11M
July 1, 2022 4:27p
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Wallace Witkowski is a MarketWatch news editor in San Francisco. Follow him on Twitter @wmwitkowski.

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