The 170% Stock-Price Rise Leading European Equities This Year
Covid-19 changed many things in the stock market. The meteoric rise of cloud-based platform provider Sinch AB wasn’t one.
After a brief interruption to the stock’s ascent when the novel coronavirus began its global spread in February, Sinch shares have continued to climb, hitting record highs almost daily and being the best performer in Europe’s Stoxx 600 Index this year with a gain of more than 170%. At 778 kronor, the stock is about 13 times higher than when it was sold in a 2015 initial public offering under the name CLX Communications AB, boosting the Swedish company’s market value to about 46 billion kronor ($4.9 billion).
So what’s to like? As a provider of the automated messages that tell you that a taxi or a parcel are on the way or remind you of a doctor’s appointment, Sinch operates in a high-growth market. Its customers include eight of the top 10 U.S. technology companies by market value, along with airlines, ride-sharing firms and delivery companies, for whom its cloud platform supports messaging, voice and video. And it’s expanding fast: this year alone, the company has made four acquisitions, including SAP SE’s digital interconnect business.
Chart Of The Day
Yahoo Finance’s Edmund Heaphy reports on the lasted market news from Europe as stocks come under pressure and coronavirus infections increase.