Shares of Zendesk (NYSE:ZEN) have popped today, up by 14% as of 3:15 p.m. EDT, after the company announced a new strategic partnership. Meanwhile, the broader market has soared on hopes of a stimulus package to mitigate the economic impact of COVID-19.
Zendesk said it was partnering with India-based Tata Consultancy (TCS) in order to offer greater customer relationship management (CRM) solutions to large organizations. That would help leverage each company's respective strengths, allowing Zendesk's software solutions to complement Tata's experience in helping companies manage digital transformations. Shares of Tata were also up on the National Stock Exchange of India.
"We are excited to work with TCS to better support the needs of enterprise companies," Zendesk President of Worldwide Partners Ricardo Moreno said in a statement. "With the combination of TCS' long-standing history of providing information technology (IT) services, consulting and business solutions to many of the world's largest businesses in their transformation journey and our service-first CRM offerings, we look forward to helping companies foster a transparent, responsive and empowered customer experience."
The broader market also rallied on hopes that U.S. lawmakers would agree on a stimulus package designed to help bolster the economy, as key sectors are imploding due to the ongoing pandemic. State governments have been taking various drastic measures in an effort to curb the disease's spread, including stay-at-home orders that are hurting local businesses like restaurants and bars. The travel industry is also completely collapsing. Many companies are seeking massive bailouts from the federal government.