Shares of Zoom Video Communications (NASDAQ:ZM) rose today even as the broader market tumbled. Zoom's stock jumped on news that European coronavirus outbreaks could bring more restrictions, which could lead to more use of Zoom's video service.
Zoom's stock gained as much as 6.8% today and was up 6% as of 1:12 p.m. EDT.
The broader market fell today as inventors continued to process news that rising COVID-19 cases across Europe could spur increased restrictions and potential lockdowns. Additionally, many investors are concerned that U.S. lawmakers have failed to agree on more financial assistance for those who have lost their jobs because of the pandemic.
But Zoom's stock rose today because so-called stay-at-home stocks benefit when there are increased social distancing measures. Zoom's business has benefited over the past six months as schools, companies, and friends and families have used the company's video service to communicate with each other.
Zoom's stock price bump today has added to the company's 255% gains over the past six months.
Zoom continues to be a bright spot in the stock market and the company could continue to experience share price gains in the coming months. If Europe imposes more lockdowns or even brings back some earlier restrictions, people are going to rely more on video calls to keep in touch once again. Additionally, the U.S. could experience spikes in virus cases as we enter the fall and winter months, which could increase demand for Zoom's services as well.