Are These The Best Software Stocks To Invest In Right Now?
Software stocks are in an interesting position in the stock market today, to say the least. Why? Well, for one thing, a prominent chunk of the top tech firms around offer software services. This is by no coincidence. After all, like it or not, software acts as the metaphorical glue to our tech-reliant world today. Wherever there is tech, there is likely software running in the background to ensure it remains working right. From the ever-growing cloud, data center, and artificial intelligence (AI) markets to newer areas like the metaverse, this is apparent. Accordingly, for investors looking to ride the current momentum in tech, software stocks could be a go-to.
For instance, we could look at companies such as Alibaba (NYSE: BABA) and Uber (NYSE: UBER). At face value, both firms may seemingly have different core businesses. However, they share a core reliance on software. This would be through Alibaba’s cloud computing or Uber’s consumer app. Even now, both companies continue to refine and expand their operations. Just last week, Alibaba upsized its $15 billion share buyback program by a whopping $10 billion. As of earlier today, Uber is working with oil giant BP (NYSE: BP) on a global delivery partnership. Evidently, there seems to be plenty of exciting developments in the software space now. Could that make one of these software stocks top picks in the stock market now?
Software Stocks To Buy [Or Sell] Ahead Of April 2022
- Nielsen Holdings (NYSE: NLSN)
- Sony Group Corporation (NYSE: SONY)
- PayPal Holdings Inc. (NASDAQ: PYPL)
- Shift4 Payments Inc. (NYSE: FOUR)
Nielsen Holdings
To begin with, we will be taking a look at Nielsen. In essence, it is a global leader in audience data, measurement, and analytics. What this means is that Nielsen operates by compiling viewership data across a variety of mediums. This includes TV, digital platforms, and even radio. Through the data it compiles, Nielsen enables advertisers among its other clients by allowing them to better connect with their audiences. It achieves this by providing actionable insights into consumer viewing habits. As brands and businesses interact with consumers digitally more than ever, Nielsen’s offering would be in-demand.
Likewise, this appears to be the case for NLSN stock today as well. The company’s shares are in the spotlight now following news of its agreeing to go private. Simply put, Brookfield Asset Management (NYSE: BAM) is leading a $10.06 billion deal to purchase Nielsen. As it stands, the current deal offers $28 for each of Nielsen’s shares. This values the firm at a whopping $16 billion including debt. This would be an improvement over a prior offer of $25.40 per share that the company declined just last week. By Brookfield’s estimates, the deal will likely close by the second half of 2022. As such, it would not surprise me to see investors piling onto NLSN stock today. Would you agree?
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Sony Group Corporation
Sony is a multinational conglomerate with headquarters in Tokyo, Japan. The company is one of the world’s largest manufacturers of consumer electronic products. It is known for its video game consoles, the PlayStation series, and its Xperia line of smartphones. Through its Sony Entertainment, it is also one of the largest music companies in the world. Today, the company announced an exciting piece of news for its gaming subscription service.
The company is bundling its existing PlayStation Plus and PlayStation Now services into one single subscription service called PlayStation Plus. The new subscription will arrive in June and comes in three tiers; Essential, Extra, and Premium. The higher tiers also represent a major evolution for PlayStationPlus as it will offer hundreds of games that include the best quality content. It will include titles like God of War and Marvel’s Spider-Man, which have millions of players all over the globe. With that in mind, is SONY stock worth adding to your list of software stocks?
PayPal Inc.
PayPal is a software company that provides a digital payment service. With over 20 years in the field, the company continues to leverage technology to make financial services and commerce more convenient, affordable, and secure. In fact, the company empowers more than 425 million consumers and merchants in more than 200 markets around the globe. Last month, the company reported its fourth-quarter and full-year 2021 financials.
Diving in, total payment volume (TPV) for the quarter was $339.5 billion, growing by 23% year-over-year. Net revenues for the quarter were a nice $6.9 billion, growing 13% compared to a year earlier. The company also reported an earnings per share of $0.68 for the quarter. For its full-year 2022, the company expects TPV to grow by a topline of 22% year-over-year. PayPal also expects revenue to grow by 15% to 17% on a spot basis. For these reasons, is PYPL stock worth investing in right now?
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Shift4 Payments
Following that, we have Shift4 which processes payments for over 200,000 businesses in the retail, hospitality, leisure, and restaurant industries. The company has redefined commerce for these companies by simplifying complex payments ecosystems across the world. As a leader in the field, Shift4 powers billions of transactions annually for its businesses. On March 1, 2022, the company announced two acquisitions to expand on international payments and its cryptocurrency capabilities.
In detail, the company will acquire both Finaro and The Giving Block. Finaro is a cross-border e-commerce payments provider with a large European presence while The Giving Block specializes in cryptocurrency fundraising for nonprofits. These acquisitions support Shift4’s ambitious goals and better position the company to pursue a multi-trillion-dollar addressable market across the world, including accelerating growth in eCommerce, gaming, stadiums, restaurants, hospitality, specialty retail, charitable giving, and a new capability with cryptocurrency enablement. Finaro in particular will provide the global infrastructure and cutting-edge technology needed to drive Shift4’s international ambitions to deliver a unified commerce experience. All things considered, is FOUR stock a buy today?
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