Do You Have These Top Software Stocks On Your Watchlist?
Amongst the divisions of the broader tech industry, software continues to be a prominent area of interest. This would be the case for investors and organizations alike. As most would know by now, the pandemic lit a spotlight on the importance of proper digital infrastructure in the current age. Moving forward, it seems that even the major players in the field are confident of their long-term viability as well. According to Twilio (NASDAQ: TWLO) CEO Jeff Lawson, “companies that upped their digital game during the pandemic are not going back.” Should this be the case, I could see investors keeping an eye on the best software stocks now.
For one thing, the industry continues to press forward regardless of how software stocks are doing. Yes, software stocks are among the stocks affected by the recent pullbacks. But, the likes of IBM (NYSE: IBM) and Zendesk (NYSE: ZEN) have not slowed down regardless. Firstly, IBM announced that its hybrid cloud services are now available across all environments. This would mean that cloud services are continuously being expanded to even more mediums, making them more accessible.
Aside from that, Zendesk also revealed that it would be integrating its software with artificial intelligence (AI) company, Jio Haptik. As a result, it is now working on AI-driven chat services. These are but two instances of the constant developments going on in the field. Could one of these stocks be your next big software investment?
Best Software Stocks To Watch
- Salesforce.com Inc. (NYSE: CRM)
- DocuSign Inc. (NASDAQ: DOCU)
- Amesite Inc. (NASDAQ: AMST)
- C3Ai Inc. (NYSE: AI)
For starters, we will be looking at leading customer relationship management (CRM) company Salesforce. In brief, the company offers cloud-based CRM services to its customers. Alongside that, it also provides a suite of related enterprise applications that help with marketing automation, analytics, and application development. As I mentioned earlier, the cloud is not only becoming more advanced, it is also expanding rapidly. With that in mind, Salesforce’s services would likely continue to cater to organizations’ CRM needs post-pandemic. Likewise, the company’s shares, adequately named CRM stock, would be in the limelight now. This is because investors are watching the industry closer than ever amidst the current tech selloffs.
On top of that, Goldman Sachs (NYSE: GS) analyst Kash Rangan praised CRM stock in a research note yesterday. Rangan suggests that Microsoft (NASDAQ: MSFT) and Salesforce are buys right now. He cites both companies being “well-positioned to capitalize on digital transformation spending” as a key factor behind this update. Particularly, Rangan also believes that CRM stock trades at a “sizeable discount” to its peers. In terms of business highlights, Salesforce also expanded its existing alliance with marketing analytics giant Proof Analytics yesterday. Essentially, the duo is bringing more comprehensive marketing performance management services to the Salesforce platform. With the company firing on all cylinders, will you be watching CRM stock?
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Another top software company to know now would be DocuSign. The San-Francisco-based company is in the business of electronic agreement management. Through a subscription model, customers get access to the DocuSign Agreement Cloud (DAC). The main pull for DOCU stock would be the viability of DocuSign amidst the current pandemic. Its flagship service which many know it for would be eSignatures, a means of signing documents electronically. Not only has this simple service enabled countless businesses during the pandemic, but it has also brought investors big gains. Notably, DOCU stock is looking at gains of over 130% over the past year. With the company slated to release its fourth-quarter fiscal after Thursday’s closing bell, could it be worth watching?
If anything, DocuSign appears to be keen on keeping up its current momentum. In a blog post released earlier today, the company announced a new update to its software. Namely, the DocuSign eSignature browser add-on is now integrated with several key Google (NASDAQ: GOOGL) services. Thanks to this update, users can now access DocuSign through Gmail, Google Drive, and Google Docs by installing one add-on. With Google’s office software being a go-to for millions of homebound individuals, this is a fantastic play by DocuSign. Given all of this, will you be watching DOCU stock now?
Next, Amesite is an educational tech company that operates via a Software-as-a-Service model. For some context, the company mainly operates via an advanced AI-driven online learning platform. Through the platform, Amesite provides both content creation and top-of-the-line infrastructure for the online learning market. Its main end markets include the business and education industries. Therefore, you could say that it would be a key player in addressing the physical barriers in education faced throughout the world today. In fact, AMST stock jumped by over 9% during intraday trading yesterday, could investors be taking the chance to buy it on the dip?
Well, the company has been making plays lately. Last week, Amesite successfully implemented its whole enterprise solution for the Henry Ford (NYSE: F) Museum of American Innovation. Simply put, Amesite launched a complete online learning platform, inHub, for the museum. By doing so, the company has brought all the educational content from the museum to the cloud. With legacy points of education still making the transition towards the digital medium, Amesite would be playing a crucial role. Not to mention, the global online education market is estimated to grow to $319 billion by 2025. This could make for a long growth runway for AMST stock moving forward. Would you agree?
C3Ai as its name suggests is an AI company. For the most part, the company provides AI-based solutions for enterprise businesses. In a nutshell, C3Ai’s main services involve AI machine learning and data science. The company’s clients employ its services to vastly improve business performance and efficiency. Speaking of clients, the company caters to industrial giants such as 3M (NYSE: MMM) and Raytheon (NYSE: RTX). Moreover, it also serves the U.S. Air Force alongside oil and gas players like Baker Hughes (NYSE: BKR) and Shell (NYSE: RDS.A). Given its clientele and position in the growing AI industry, it would make sense if investors are watching AI stock right?
To begin with, the company beat consensus earnings estimates in its recent quarter fiscal posted last week. However, it fell short in terms of loss per share estimates. This paired with the current movement of tech stocks would likely contribute to AI stock’s current losses. But, investors may be overlooking the fact that C3Ai is sitting on a large backlog of existing non-cancelable contracts. In theory, this would make for growth prospects in the foreseeable future as most of its key clients were affected by the pandemic. Furthermore, the company also formed a strategic partnership with cloud software company Infor yesterday. The duo will be expanding Infor’s machine learning capabilities to provide customers with more industry-tailored services. With C3Ai kicking into high gear, will you be adding AI stock to your watchlist?