The Atomos Ltd (ASX: AMS) share price is up 27.4% since Friday's closing bell. That far outpaces the 1.2% gain for the All Ordinaries Index (ASX: XAO) over that same time.
The global software and hardware technology company's share price was savaged by the COVID-19 market selloff in February and March. From 25 February to its low on 19 March, the Atomos share price plunged 75%.
Since that low, Atomos shares have gained an impressive 80%. Although that's not nearly enough to recoup its losses earlier in 2020. Year-to-date, the Atomos share price is still down 61%.
At its current share price of 54 cents per share, Atomos has a market cap of $117 million.
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What does Atomos do?
Atomos is an Australian-based software and hardware technology company. It develops and markets products involved with video monitoring, processing and recording technologies.
Atomos was founded in 2010 after it created the world's first video monitor-recorder. This enabled users to alter the quality of the editing and production output of their video camera at a lower cost. Today Atomos works with some of the biggest names of technology providers including Apple, Adobe, Sony, Canon, JVC Kenwood, Nikon, FUJIFILM and Panasonic.
What's driving Atomos' huge weekly share price gain?
Atomos released a business trading update on 30 July. While that saw the Atomos share price jump 5.6% higher on the day, it lost ground heading into last Friday, falling 12.5% from 31 July to 7 August.
There was no specific news out of Atomos that would drive its 28% share price rise this week. I expect investors are realising the shares may have been oversold earlier this year. That's particularly relevant with the rapid rise of video streaming as much of the world shifts to working, shopping and socialising from home during the pandemic lockdowns.
In its 30 July update, Atomos did cite that the video market in July had started to open up and was showing positive signs. There may well be other positive signs emerging in the market that warrant this week's share price gains.
The Atomos share price is likely also benefitting from the broader rally in technology shares. Overnight the tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) closed up 2.1%, less than 1% off its record high set last week.
