Zoom Video Communications (ZM) - Get Free Report shares surged to a fresh all-time high Monday as businesses and consumer seek alternatives to face-to-face meetings while coronavirus lockdowns keep one in three American at home.
Zoom had said earlier this month that COVID-19 had driven significant usage increases in China, its ninth-largest market, as businesses closed and factories shuttered under strict government restrictions on travel and gatherings. Similar shutdowns in the United States, particularly in New York and California, are also driving similar increases at home as remote work demands increase.
Zoom was the top performer in Apple Inc. (AAPL) - Get Free Report AppStore sales last week, while analysts at KeyBanc Capital Markets suggest it continues to take market share from conferencing rival GoToMeeting (LOGM) - Get Free Report.
"Following the COVID-19 outbreak globally, conferencing companies have seen a significant increase in app downloads and usage the past few weeks from elevated work from home activity," said KeyBanc analyst Alex Kurtz, who has boosted his revenue targets for this year and next, to $914 million and $1.23 billion respectively.
"Our data suggest a 35% y/y increase in the first two weeks of March vs. the first two weeks of March 2019 with outsized growth in the second week of March vs. the first (when WFH became more standardized)," he added. "Most of the growth upside was driven by Zoom and Bandwidth is a key beneficiary of this increased usage."
Zoom shares were marked 26.2% higher in mid-day trading Monday to change hands at $164.42 each after hitting an all-time high of $164.94 earlier in the session. Monday's move, in fact, extends the stock's year-to-date gain to around 165% and values the San Jose, California-based group at just over $45 billion.
Six U.S. states -- California, New York, Illinois, Michigan, New Jersey and Connecticut -- representing more than a third of U.S. economic output have issued 'stay-at-home' orders amid the coronavirus outbreak.
Domino's Pizza Inc. (DPZ) - Get Free Report, was marked 6.75% higher Monday at , extending its one week gain to around 10%, as the pizza delivery chain ramps up hiring amid a rush for in-home dining. Rival Papa John's (PZZA) - Get Free Report, was also on the move, rising 4.5% Monday to $53.30.
Streaming entertainment service Netflix (NFLX) - Get Free Report, meanwhile, was last seen 6.4% higher at $354.18 while meal-kit delivery group Blue Apron Holdings (APRN) - Get Free Report surged 13.2% to $11.40 each.