What happened

Shares of DocuSign (NASDAQ:DOCU), Fastly (NYSE:FSLY), and Roku (NASDAQ:ROKU) all jumped on Tuesday, spiking as much as 20%, 6%, and 7%, respectively.

The companies' shares are likely getting a boost from optimism in the market on Tuesday for growth stocks, fueled by Zoom Video Communications' (NASDAQ:ZM) blowout earnings report that sent its shares soaring more than 30%.

A chart showing stocks rising on higher trading volume

Image source: Getty Images.

So what

After their initial big gains early in the trading day, all three of these stocks' gains have cooled off a bit. As of 11:45 a.m. EDT today, DocuSign was up 13% and Fastly and Roku were both up about 3%.

E-signature specialist DocuSign's big move higher notably comes ahead of its earnings report, set to be released after market close on Thursday. Some investors may be betting that some of the same drivers propelling Zoom's extraordinary revenue growth, namely work-from-home trends, may help DocuSign beat analyst expectations, too.

Zoom Video reported revenue of $663.5 million for its fiscal second quarter. This more than quadrupled revenue in the year-ago quarter and soared past analysts' average estimate for $500.5 million. Similarly, adjusted earnings per share jumped from $0.08 in the year-ago period to $0.92, obliterating analysts' average forecast for $0.45.

"Organizations are shifting from addressing their immediate business continuity needs to supporting a future of working anywhere, learning anywhere, and connecting anywhere on Zoom's video-first platform," said Zoom CEO Eric Yuan in the company's earnings release.

Also impressing investors was the company's boosted outlook for the full year. Management said it now expects revenue for the full fiscal year to be between $2.37 billion and $2.39 billion. It was previously guiding for full-year revenue between $1.775 billion and $1.8 billion.

It's not surprising to see growth stocks DocuSign, Fastly, and Roku, all of which benefit from stay-at-home trends, moving higher on Tuesday as broader-market optimism for technology growth stocks continues. The three stocks have been rising in recent weeks, and Tuesday's big jumps extend that rally.

Now what

DocuSign and cloud-native cybersecurity company CrowdStrike (NASDAQ:CRWD) are two growth stocks on deck for helping determine whether cloud software stocks are truly deserving of their high valuations. CrowdStrike reports its fiscal second-quarter results after market close on Wednesday, and DocuSign will report its results after market close the following day.

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.