The stock of business intelligence solutions provider ZoomInfo Technologies (NASDAQ:ZI) had yet another smashing day on Monday.
The shares have doubled and then some from their IPO price, since making their stock market debut last Thursday just after the company's IPO.
IPOs are all the rage with investors these days. One reason is that there have been precious few of them in the wake of the SARS-CoV-2 coronavirus pandemic -- in fact, ZoomInfo is the first post-lockdown IPO in the tech sector, an ever-fertile field of investor interest. Meanwhile, a resurgent stock market of late has led investors to seek out novel and undervalued companies.
ZoomInfo also ticks several boxes popular with business tech investors -- it operates a proprietary platform, it utilizes artificial intelligence (AI) and machine learning, and its solution is cloud-based. Solid fundamentals help too, like a sizable customer base of roughly 202,000 paid users, and a top line that zoomed 103% higher on a year-over-year basis in 2019.
On the minus side, ZoomInfo had total long-term borrowings of just over $1.2 billion at the end of 2019. However, the roughly $935 million raised in the IPO should help solve that problem.
Investors don't seem concerned that in a post-coronavirus world, some companies will likely trim costs like business intelligence. There are clearly many fervent believers in this company, so we could be witnessing the birth of a new tech star on the market.