Shares of teleconferencing software company Zoom Video rose in trading as investors looked to the stock as one of the few beneficiaries from the outbreak of coronavirus.
The stock climbed 3.2% on strong volume on Monday and hit new record high levels. Zoom Video shares traded inversely to the rest of the U.S. market, which sold off sharply as the number of confirmed coronavirus cases outside China surged over the weekend. Zoom Video's stock is up more than 50% this year, while the Dow Jones industrial average is down about 1.4%.
"Zoom Video's going to go up every day since they can barely meet their orders," CNBC's Jim Cramer said on "Squawk on the Street."
The company's CEO Eric Yuan told CNBC earlier this month that demand for the cloud-based video conferencing service has surged, with U.S. employees in China forced to work remotely due to coronavirus. Zoom Video offers videoconferencing, online meetings, chat and mobile collaboration services.
"That's why our usage is very, very high since the last of the month, last week. Almost every day, that's a record usage," Yuan said a few weeks ago.
Zoom Video is expected to report fourth-quarter results after the market closes on Mar. 4. Goldman Sachs, which has a sell rating on the stock, said in a note to investors that it expects Zoom Video's results will see revenue come "roughly in line" with Wall Street's average estimate of $176 million.
"We continue to view ZM as the leading video communication platform, with a product that is gaining significant traction and changing the way its customers communicate," Goldman Sachs analyst Heather Bellini said. "However, we believe market expectations from a valuation perspective have gotten ahead of themselves."
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