The Best Work From Home Stocks: Slack, Zoom Or DocuSign? – Forbes - Freelance Rack

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Thursday, April 30, 2020

The Best Work From Home Stocks: Slack, Zoom Or DocuSign? – Forbes

Technology stocks focused on cloud-based collaboration and productivity have fared well this year, as the coronavirus pandemic has forced people to work and learn from home. Our indicative theme of five work and learn from home stocks – which includes Zoom, and Slack among others – has gained a solid 50% year-to-date on an equally weighted basis, compared to the broader S&P 500 which is down by about 14% over the same period. It’s likely that the crisis will cause a structural shift as well, benefiting these stocks well past the pandemic, as employers could encourage their workforces to continue to work from home for at least a couple of days a week even after the health crisis abates, as they look to cut travel and real-estate-related costs. See our dashboard analysis on Work And Learn-From-Home Theme. We provide an overview of some of the stocks and their returns below.

Zoom (+130% YTD, $44 billion market cap) has emerged as the video conferencing platform of choice through the pandemic, thanks to its easy user interface and simple sign-up process, although concerns have lingered around its security. The company had about 300 million daily users as of mid-April, up from just about 10 million in December.

DocuSign (+40% YTD, $ 19 billion market cap) a company that offers e-signature solutions enabling companies to sign and manage contracts and agreements digitally, avoiding time cumbersome, and inefficient manual process. With employees and teams separated due to the pandemic, the trend toward document digitalization is only likely to grow, benefiting the company.

Slack (+20% YTD, $ 15 billion market cap) is best known for its collaboration platform that is positioned as an alternative to email. The company’s product is seeing a stronger uptake as companies look at improving communication and collaboration among remote teams. For instance, as of March 25, Slack indicated that it added about 9,000 new paid customers over ~8 weeks, compared to about 5000 customers added in each of the prior two quarters.

Did you know healthcare companies working on Coronavirus vaccines have fared better still, gaining an average of 130% year-to-date? See our dashboard analysis COVID Vaccine Stocks for a list of U.S. listed companies developing Coronavirus vaccines.

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