The All Ordinaries index has been in fine form recently and has managed to narrow its year to date decline to just 1%.
Considering how far we fell at the height of the pandemic, this certainly is an incredible turnaround.
While the All Ords is still down slightly in 2020, the same cannot be said for some index constituents.
Two ASX shares that have more than doubled in value this year are listed below. Here's why they are on fire:
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Macquarie Telecom Group Ltd (ASX: MAQ)
The Macquarie Telecom share price is up a massive 130% since the start of the year. Investors have been buying the data centre and telecom company's shares this year due to its strong performance in FY 2020 and positive outlook. This has been driven largely by increasing demand for cloud and cyber security services, particularly in the government sector.
In FY 2020, Macquarie Telecom delivered an 8% increase in revenue to $266.2 million and a 25% lift in earnings before interest, tax, depreciation, and amortisation (EBITDA) to $65.2 million. Management is expecting further growth in EBITDA in FY 2021. And this guidance was prior to the recent announcement earlier this month of a major contract for the provision of approximately 10MW of capacity at its Macquarie Park Data Centre Campus.
Whispir Ltd (ASX: WSP)
The Whispir share price has been a very stronger performer in 2020. Despite trading well below its 52-week high, the communications workflow platform provider's shares are up a sizeable 108% since the start of the year. This has been driven by a surge in demand for its services during the pandemic which led to stellar growth in FY 2020.
For the 12 months ended 30 June 2020, the company delivered a 25.5% increase in revenue to $39.1 million and annualised recurring revenue (ARR) growth of 34% to $42.2 million. This was driven by increased usage from existing customers and a greater than forecast increase in net new customers.
Pleasingly, more strong growth is expected in FY 2021. Management provided guidance for ARR of $51.1 million to $55.3 million and revenue of $47.5 million to $51 million. The high end of these guidance ranges represent year on year growth of 31% and 30.4%, respectively.
