Shares of Zoom Video Communications (ZM -1.09%), Square (SQ 3.19%), and DocuSign (DOCU 0.47%) jumped 7.1%, 8.1%, and 12.8% on Wednesday, as investors began to weigh the results of the U.S. elections.
With Democratic candidate Joe Biden looking increasingly likely to become the new U.S. president, investors are likely factoring in the possibility of more and stricter social distancing guidelines. This could bode well for Zoom and DocuSign, as the video communications platform and e-signature leader would continue to enjoy booming demand for their services in such a scenario.
Investors may also be pricing in the likelihood of a larger economic stimulus package under a Biden presidency. Much of this stimulus money would likely go to small businesses and consumers, which comprise the majority of Square's customers and end users.
While a Biden victory would probably benefit Zoom, Square, and DocuSign, all three of these growth stocks have performed very well with President Trump in office, so they're not dependent upon any particular political outcome. This helps to lessen the risk for investors.
Moreover, Zoom, Square, and DocuSign are all poised to profit handsomely from powerful long-term trends -- such as remote work and e-commerce -- which should help fuel their growth for many years to come.