Wednesday’s Headlines: Zoom’s Earnings Spark A Market Rally
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Zoom Communications (ZM) +40.8%
DocuSign (DOCU) +20.5%
Nautilus (NLS) +16.9%
Stitch Fix (SFIX) +9.3%
Moving Down ⬇️
Nordstrom (JWN) -5.1%
Tesla Motors (TSLA) -4.7%
Diageo (DEO) -2.7%
IMAX (IMAX) -2.1%
Pure Storage (PSTG) -1.6%
1. Not only has it become a stalwart of our current everyday lives, but Zoom’s (ZM) 40.8% leap on Tuesday following knockout earnings proves that it’s still a market favorite. The massive move sparked a tech rally which helped the Dow Jones (DIA) jump 200 points, while the Nasdaq (QQQ) and S&P 500 (VOO) both hit all-time highs. The momentum on Wall Street is well and truly with tech right now, with the Nasdaq up 39% year-to-date (YTD), far surpassing the other major indexes and led by its heavy reliance on FAANG and other tech stocks. Read more here.
2. Zoom wasn’t just a catalyst for the Nasdaq, as individual growth stocks soared on the optimism behind its earnings, and none more so than Docusign (DOCU), which rose 20% on Tuesday. Ahead of its earnings on Thursday, investors are likely betting that some of the drivers behind Zoom’s extraordinary revenue growth, i.e. working from home, will help Docusign beat expectations. DocuSign has been one of Wall Street’s big winners so far in 2020, with the electronic signature software maker's stock climbing an impressive 254% YTD. Read more here.
3. Shares in at-home exercise equipment maker Peloton (PTON) soared 9% to all-time highs on Tuesday, continuing the growth stocks tremendous recent performance. Tuesday’s gains come following the introduction of Peloton’s new Health and Wellness Advisory Council, which will guide its product development as a means to "positively impact the physical, mental, and emotional wellbeing" in members. This new science-focused approach from Peloton is an impressive step in allowing the business to maintain its premium image, with investors clearly pleased with the company’s new direction. Read the full story here.
There are two companies in the MyWallSt shortlist that will report earnings today:
Brown Forman (BF.B)