The Nasdaq Composite (NASDAQINDEX: ^IXIC) continued to outperform the broader market on Friday, responding in its own way to alarming news about the COVID-19 pandemic and new measures aimed to stop the spread of the disease. Even as most major market benchmarks lost ground, the Nasdaq was up modestly as of just after noon EST.
Yet underneath what seemed like a relatively calm day on the Nasdaq, there were some big winners and losers. Even among top software-as-a-service names, Zoom Video Communications (NASDAQ: ZM) and Workday (NASDAQ: WDAY) stood out as they moved sharply in different directions. Below, we'll look at what sent these SaaS stocks on diverging paths and what it means for investors.
Zoom shares were up 6% at midday on Friday. The video collaboration software platform provider has been one of the big winners in the past year, and the usefulness of its product in helping people cope with the business and personal impacts of the pandemic has been the biggest reason.