Are These The Best Software Stocks To Invest In Today?
As the broader stock market seems to chug along after this solid week, tech stocks are thriving. Because of the current momentum in the tech-heavy Nasdaq composite, investors may want to look at the top software stocks around now. Why? Well, for one thing, the software industry has and continues to grow at breakneck speeds. For the most part, this would be due to the increasing reliance on software services across the board.
We could take a look at industrial software firms such as UiPath (NYSE: PATH) for instance. Thanks to the advancements in modern tech, companies like UiPath now offer robotic process automation services to manufacturers globally. Just this week, PATH stock is already up by over 14%. At the same time, there are plenty of emerging names in the field to consider as well. Just yesterday, NerdWallet (NASDAQ: NRDS), a personal finance platform, went public via an initial public offering (IPO). The company’s shares surged by over 50% throughout its first day of trading. All this could suggest that investors are already keeping an eye out for the best software stocks around.
Not to mention, companies such as Alphabet (NASDAQ: GOOGL) and Microsoft (NASDAQ: MSFT) are also seeing their software divisions flourishing. With all this in mind, could one of these software stocks be top picks in the stock market today?
Top Software Stocks To Buy [Or Sell] In November 2021
- Cloudflare Inc. (NYSE: NET)
- Meta Platforms Inc. (NASDAQ: FB)
- Pinterest Inc. (NYSE: PINS)
- Mercadolibre Inc. (NASDAQ: MELI)
- Fortinet Inc. (NASDAQ: FTNT)
Cloudflare
Starting us off today is Cloudflare. In brief, the company is a web infrastructure and website security solutions provider. Cloudflare primarily offers content delivery network and DDoS mitigation services. Simply put, the company acts as a mediator between website visitors and businesses. Notably, the importance of Cloudflare’s services as client interactions in the digital space increase should not be overlooked. Investors appear to be well aware of this given the NET stock is up by a whopping 169% year-to-date.
To highlight, the latest growth catalyst for the company’s shares would be its latest quarterly earnings figures. Yesterday, Cloudflare posted a total revenue of $172.3 million for the quarter. This marks a solid year-over-year surge of 51%. For comparison, analysts projected a total revenue of $165.7 billion.
Throughout the quarter, Cloudflare also saw strong large customer growth. In detail, it added a record 170 large customers to its client list during the quarter, a 71% year-over-year increase. The likes of which are essentially contributing upwards of $100,000 in annualized sales each. Given Cloudflare’s strong growth this quarter, will you be adding NET stock to your portfolio?
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Meta Platforms
Another company shaking things up in the software space now would be Meta Platforms. Formerly known as Facebook, Meta is a multinational tech conglomerate that is leading the industry towards the metaverse. As the name suggests, the tech giant is actively shifting its focus towards creating virtual spaces where people can interact in numerous ways. This ranges from casual social meetings to gaming and even work interactions. All of which, Meta hopes to offer via a combination of artificial intelligence (AI), virtual reality (VR), and augmented reality (AR) tech.
Now, FB stock is currently looking at gains of over 120% since its pandemic era low. Understandably, the company’s social media portfolio would be in focus as consumers turn to social networking. Moving forward, Meta appears keen on providing more ways for content creators to monetize content on Facebook. Namely, creators can now create community fundraisers, activate e-commerce shops within their groups, and offer subscription packages for special subgroups. All things considered, will you be investing in FB stock anytime soon?
Following that, we will be taking a look at Pinterest. Similar to our previous entry, the company’s software expertise is also in the field of social media. The company’s flagship social media platform of the same name serves as a virtual pinboard for users. Through Pinterest, users can compile inspirations and ideas for virtually any project they are undertaking. Whether it is vacations, occasions, or house furnishings, Pinterest provides a perfect platform for brainstorming individuals.
More importantly, PINS stock seems to be gaining traction among investors in the stock market this week. Accordingly, this could be on account of the company’s quarterly earnings update yesterday. Diving right into it, Pinterest posted an earnings per share of $0.28 on revenue of $633 million for the quarter. This exceeds Wall Street’s estimates of $0.23 and $630.9 million respectively. Could all this make PINS stock a buy for you?
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Mercadolibre
Following that is MercadoLibre. It is an Argentinian e-commerce firm with a market cap of over $77.38 billion. As you can imagine, the company primarily operates via its proprietary online marketplaces. MercadoLibre’s digital commerce platforms are among the largest in the Latin American market to date. Also, MercadoLibre currently operates in 18 countries. With that said, could MELI stock be worth watching now?
To help answer this question, we could look into the company’s latest fiscal quarter report posted yesterday. In essence, MercadoLibre posted solid figures across the board. The company saw its net revenue and total payment volume soar by 73% and 59% year-over-year respectively. Additionally, MercadoLibre also reported a gross merchandise volume of $7.3 billion, a record high. With the company seemingly firing on all cylinders, would you consider buying MELI stock?
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Fortinet
Topping off our list today is Fortinet, a major player in the booming cybersecurity industry. In brief, the company mostly focuses on developing and marketing cybersecurity solutions. Through its Fortinet Security Fabric (FSF) platform, businesses and organizations of all sizes can access the company’s comprehensive digital security services. The FSF provides comprehensive protection across digital attack surfaces and critical devices. Furthermore, it also secures connections between data centers, the cloud, and home offices.
Overall, considering the relevance of Fortinet’s offerings in today’s digital work environments, investors could be eyeing FTNT stock now. This is apparent as the company’s shares are sitting on year-to-date gains of over 130%. Thanks to its third-quarter earnings report after yesterday’s closing bell, we could see this trend continue. To highlight, the company saw an earnings per share of $0.99 on revenue of $867.2 million for the quarter.
For reference, this is versus consensus projections of $0.94 and $809.9 million respectively. In the long run, CEO Ken Xie sees the total addressable market for network security rapidly growing. As a result, Fortinet remains focused on leveraging its current momentum to “drive long-term growth”. All in all, would you consider FTNT stock a top software stock to invest in?
