As the world continues the battle with the COVID-19 pandemic, companies have to adjust in many different ways. Business owners are looking for ways to cut costs while still operating as normally as possible, but they are also forced to invest in software to ensure remote working capabilities are met. Holding virtual meetings has been the norm for the last several months and may continue to be for the foreseeable future. Some companies may have not previously been set up for this arrangement, which means there are some interesting investment opportunities in software to consider. Here are a few of the top software stocks to consider amid COVID-19 and beyond.

Zoom Video Communications

One thing the COVID-19 pandemic has proven is many required in-person meetings don’t necessarily have to occur in person. Zoom Video Communications has seen their stocks rise significantly since the beginning of the pandemic as companies use their platform to hold virtual group meetings. Their reliable platform during this time has improved their stock futures and landed them on several lists of the fastest-growing companies. Zoom Video Communications provides plenty of investment opportunities as companies may stick with a work-from-home model even after the pandemic is over.

DocuSign

DocuSign is another software that has been around for a long time, but just recently saw a boost in their stock futures due to the pandemic. With business travel restricted in many parts of the world, getting in-person, handwritten signatures have become a problem. DocuSign allows for contracts, agreements, closings and other documents to be signed electronically and securely. Companies and organizations have had to loosen their requirements on handwritten signatures and DocuSign has been the beneficiary of these changes.

Software-as-a-Service (SaaS) Companies

SaaS companies are believed to provide the best investment opportunities since they are based on subscriptions and have recurring revenue as a result. The shift from on-premise software to the cloud has been an ongoing transition for several years, and the COVID-19 pandemic has expedited the process for some companies. SaaS companies typically have the highest growth in revenue in the software industry, are involved in more acquisitions and mergers and trade stocks at higher multiples as a result.

Overall Software Spending Amid COVID-19

While software spending is not expected to decrease for the remainder of the year, the increase in spending is not predicted to be significant. As an investor, you may find better investment opportunities in SaaS companies since many businesses and organizations will continue using them long after the pandemic ends. These SaaS companies offer high upsides with not as much risk and could be great long-term fits for your portfolio.

Stock Investing Info is here to help investors make the best decisions for their portfolio regardless of their financial knowledge. Software stocks are interesting to follow during the COVID-19 pandemic and may offer great investment opportunities well beyond the pandemic. We are here to help by answering any questions you have and provide advice as needed, so contact us at any time.

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