Are These The Best Software Stocks To Buy Right Now?
Software stocks could be an interesting play in the stock market now as valuations continue to take a breather across the board. Overall, the industry continues to play a role in the tech world as a home to businesses with generally higher business margins. Accordingly, this would be thanks to the emerging Software-as-a-Service (SaaS) model where companies can offer crucial digital services across industries. Some of which require minimal investments in physical infrastructure. Not to mention, there is also growing demand for SaaS offerings linked to cloud computing, digital transformation, big data analytics, and artificial intelligence. Because of all this, I could understand the appeal of software stocks now.
On top of that, there are plenty of new developments in the space to consider as well. Take for instance Roku (NASDAQ: ROKU), which recently announced its partnership with Walmart (NYSE: WMT). All in all, this partnership will allow viewers to directly purchase items from Walmart ads while streaming television programs on Roku. At the same time, analysts over at Credit Suisse (NYSE: CS) recently noted that Microsoft’s (NASDAQ: MSFT) Azure cloud computing offering is growing “faster and bigger” than Wall Street expects it to. With all this in mind, here are four more software stocks to check out for your watchlist.
Software Stocks To Watch Today
- Adobe Inc. (NASDAQ: ADBE)
- Snowflake Inc. (NYSE: SNOW)
- Spotify Technology SA (NYSE: SPOT)
- Snap Inc. (NYSE: SNAP)
First and foremost, we have a leading developer of desktop publishing software, Adobe. All in all, a substantial portion of its sales are mainly derived from three of the company’s software products, Photoshop, Illustrator, and PageMaker. Additionally, the company has also developed and distributed Acrobat Reader, a software to view and print portable document format (PDF) for its users. Following this, the company’s latest offering is the Adobe Document Cloud. In summary, the software uses Acrobat and other software to make a digital workspace for collaboration and communication.
Last week, Adobe announced its fiscal second-quarter results. Among the highlights in the press release, the company achieved a record revenue of $4.39 billion, a 14% year-over-year growth. Besides, the company has recorded income from operations of $2.04 billion. Regarding their business segment, the Digital Media segment revenue was $3.20 billion, a growth of 15% from a year ago. Meanwhile, the Digital Experience segment revenue was $1.10 billion, an increase of 17% year-over-year. Notably, Adobe repurchased approximately 1.9 million shares during the quarter. With its strong quarter, is ADBE stock worth adding to your portfolio?
Snowflake is a cloud computing-based data warehousing company. The company provides a cloud-based data storage and analytics service, named the Data Cloud. In short, it is a network of thousands of enterprises that seamlessly mobilize data across public clouds as data consumers, suppliers, and service providers. By leveraging the performance of the public cloud, the company’s platform enables users to unify and query data to serve a range of use cases. Furthermore, it provides frictionless and controlled data access. This allows users to securely communicate data within and outside of their companies without copying or relocating the underlying data.
Last week, Snowflake held its annual user conference, known as the Snowflake Summit 2022. During the conference, the company launched the Native Application Framework. In summary, developers can build applications and monetize them on their Snowflake Marketplace. Moreover, consumers can install and run these applications securely on their platform, reducing the need for data to be moved. On that same day, the company also launched Unistore. In brief, Unistore is a new workload that creates a modern approach to working with transactional and analytical data together in a single platform. With these new innovations, is SNOW stock a buy right now?
Spotify is a software company that has a proprietary audio streaming and media services platform. In fact, it is one of the largest music streaming companies in the world, with over 400 million active users. Out of which, over 180 million are active paying subscribers. Furthermore, the company has millions of tracks and episodes on its platform and has media that is personalized for every individual. Last week, the company was upgraded by Wells Fargo (NYSE: WFC) to equal-weight from underweight, saying that the company has room to improve its margin.
It also recently completed the acquisition of Findaway, a leader in audiobooks. Findaway works across the entire audiobook ecosystem with a platform and offerings that serve authors, publishers, and consumers. The company will help propel Spotify into the rapidly growing audiobooks industry with substantial market opportunity. In fact, the audiobook market is expected to grow from $3.3 billion to $15 billion by 2027. In addition to offering the largest catalog of distributed titles, Findaway has actively worked to democratize audiobooks through leading technology tools that independent authors can use to publish and distribute their stories to new audiences. Given this piece of news, is SPOT stock worth paying attention to?
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Snap is a social media company that develops services like Snapchat, Spectacles, and Bitmoji. The company has reinvented how people communicate with the camera and has over 300 million daily active users on its Snapchat application. Also, it has over 6 billion AR Lens plays per day on average, with over 250,000 Lens creators having used Lens Studio.
Last week, there were reports that the company is moving into a paid subscription model. Snap will be testing a model that would give users access to exclusive and pre-release features. This would include the ability to pin conversations with your Best Friend and also access to custom Snapchat icons. Today, the company also announced a partnership with Vogue, introducing an AR exhibition called Vogue x Snapchat. Among other big names, it also recently partnered with Tiffany and Co., with Snap AR bringing 185 years of the House of Tiffany and the launch of its exhibition, Vision & Virtuosity, into a “new dimension”. All things considered, would you be buying SNAP stock?