Wednesday reminded investors about the potential downside of the stock market. Market participants got a dose of economic reality from the chair of the Federal Reserve, as Jerome Powell emphasized the need for further fiscal stimulus in order to prevent what could otherwise be a prolonged period of deep economic retrenchment. After having opened near the unchanged mark, the Dow Jones Industrial Average (DJINDICES:^DJI), S&P 500 (SNPINDEX:^GSPC), and Nasdaq Composite (NASDAQINDEX:^IXIC) finished with losses of as much as 2%.

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Yet even in the downdraft for the broader market, a couple of stocks stood out by setting new all-time record highs. RingCentral (NYSE:RNG) and Chegg (NYSE:CHGG) are both taking advantage of changing business conditions, and both are reaping the rewards.

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Image source: Getty Images.

Big gains calling

RingCentral's stock finished higher by 2% on Wednesday, adding to its big gains recently. The company is working hard to give its enterprise customers greater ability to communicate using multiple methods in a single platform, and so far, shareholders like what they're seeing from RingCentral.

At first glance, RingCentral's primary software product looks a lot like what you've seen more prominently from companies like Zoom Video Communications (NASDAQ:ZM). Yet RingCentral's platform looks to integrate chat-based messaging, telephone, video conferencing, and file sharing into a single location that enterprises can use across their worker base. Moreover, RingCentral is also moving into customer service-based communications, helping clients interact more effectively with their own customers.

RingCentral recently came out with its own video solution, intending to keep more of its capabilities within its own ecosystem. In its quarterly financial report last week, RingCentral revealed how popular its platform has been during the coronavirus pandemic, as more businesses seek to get access to its affordable tools.

RingCentral's stock has doubled just since September and is up sharply over the past five years. That makes some investors leery about how much more potential the company has, but RingCentral's addressable market is getting bigger every day.

Schooling the competition

Meanwhile, shares of Chegg gained 5%. The online education specialist has continued to gain ground after a strong quarterly report last week highlighted the opportunity ahead of the company right now.

Chegg's revenue jumped 35% in the first quarter of 2020, lifting adjusted earnings by 40% year over year. Many investors know Chegg best for its textbook rental services, but the company gets far more of its sales from its educational support services, which include tutoring and studying-assistance tools to help with writing, math, and other subjects.

Some investors were initially skeptical of Chegg's surge, figuring that any coronavirus-related disruptions would prove short-lived. Yet now, many universities and public school districts are thinking twice about whether they'll open for conventional class studies this fall. With programs designed to help not only traditional students but also those hoping to acquire valuable work skills, Chegg is covering all the bases.

Technology is answering the call in many ways to help people make it through the COVID-19 outbreak, and investors are recognizing the innovative companies that have developed the best solutions for important problems. Both Chegg and RingCentral have already seen impressive gains, but they could still climb further if they keep executing the way they have lately.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.