As we close the first week of February, software stocks continue to dominate the market. Unsurprisingly, this is because we are in the midst of a software revolution. Obviously, this was sped up by the coronavirus pandemic. With corporations chaotically rushing towards digital acceleration, we have seen tremendous growth throughout the industry. No doubt, this is because of increased corporate spending on digital infrastructure. But, you might be wondering if the top software stocks to watch in the stock market today still has room to run this year.
By current estimates, that might be the case. In fact, Gartner (NYSE: IT) projects that software will be the “fastest-growing major market this year.” The research firm estimates that global spending on enterprise software will add up to $556 billion in 2021. Adding to that, Gartner also mentions that growing software-as-a-service (SaaS) adoption will likely fuel the upward trend. Some of the best software stocks now include the likes ServiceNow (NYSE: NOW) and Zendesk (NYSE: ZEN). Amazingly, the two have more than doubled in share price since the pandemic hit. As you’d expect, they are key players that provide essential digital services for companies amidst the pandemic.
By and large, with sky-high projections and the pandemic still in play, investors would be looking for gains from the software industry. To help with that, here is a list of four software companies that help businesses refine customer experiences.Best Software Stocks To Watch
- Digital Turbine Inc. (NASDAQ: APPS)
- AudioEye Inc. (NASDAQ: AEYE)
- Twilio Inc. (NYSE: TWLO)
- Medallia Inc. (NYSE: MDLA)
Digital Turbine is a content delivery software company. Its proprietary media platform facilitates smooth and relevant digital content experiences for internet users. Generally, this helps clients with user acquisition and engagement, operational efficiency, and monetizing content better. Naturally, you would expect demand for its services to rise as businesses attempt to improve their customers’ online experiences. Well, APPS stock has been on a tear with gains of over 1,100% over the past year. It also popped by over 20% during intraday trading yesterday thanks to a stellar third-quarter report.
Impressively, Digital Turbine saw a 146% year-over-year jump in total revenue, marking another consecutive quarter with record revenue. This added up to a cool $88.6 million for the quarter. Moreover, the company saw a 278% surge in earnings per share year-over-year as well. Digital Turbine cites strong demand for its core Application Media and Content Media services as key contributors to these results.Source: TD Ameritrade TOS
Moving forward, CEO Bill Stone said, “We believe that we are still in the early stages of our growth story at Digital Turbine, as we continue to employ our core diversification strategy in an effort to more fully leverage our global distribution footprint with both existing and newly-developed products and services.” Has all this convinced you to consider APPS stock for your portfolio?AudioEye Inc.
Another software company in focus now would be AudioEye. The company operates via its industry-leading digital accessibility platform and caters to organizations of all sizes. In brief, AudioEye’s platform comes with tools that ensure websites are accessible to as many audiences as possible. Along with this, the company also offers a paid monthly plan which covers legal, educational, and tech support services. This is important as businesses attempt to address the widest array of audiences amidst the current digital age.
Accordingly, AEYE stock has skyrocketed by over 1,000% since the March selloffs and closed at a new all-time high yesterday. On account of its recent announcement on Tuesday, investors seem to be keen on AEYE stock.Source: TD Ameritrade TOS
AudioEye revealed the next generation of its flagship platform. The new platform now provides advanced artificial intelligence (AI) functions supported by certified experts. Admittedly, the company mentioned that it has been setting up for this upgrade in its services for the past year. In that time, it made significant investments in its technology and team. AudioEye also brought on leaders with backgrounds in Facebook (NASDAQ: FB) and BigCommerce (NASDAQ: BIGC). Could this integration of deep industry knowledge and AI mean big gains for AEYE stock moving forward? You tell me.Twilio Inc.
Following that, we will be looking at cloud communications company Twilio. Through its web services, software developers can perform a wide array of communication functions. Essentially, the company provides an effective means for companies to interact with their customers. It caters to the communication needs of companies across multiple industries. To illustrate, its clients include Shopify (NYSE: SHOP), Dell (NYSE: DELL), and Airbnb (NASDAQ: ABNB) to name a few. With such impressive clientele, it is no wonder that TWLO stock has more than tripled in value over the past year. Notably, it hit a record high at yesterday’s closing bell as news broke of its latest collaboration.
Twilio will be working closely with Virginia-based software firm, Terazo, to develop COVID vaccine outreach and delivery solutions. Basically, the duo will create a COVID call center powered by Twilio’s services. Ideally, the call center will play a crucial role in aiding healthcare systems with vaccine availability and appointment coordination. With Twilio playing its part to help with inoculation efforts, authorities and companies alike will be exposed to its offerings.Source: TD Ameritrade TOS
Furthermore, this move serves to showcase the viability of Twilio’s services regardless of industry. As companies continue to turn to Twilio for its best-in-class communication solutions, TWLO stock could continue to soar. Would you agree?Medallia Inc.
Last but not least, we have customer experience company, Medallia. The company’s core business revolves around its award-winning SaaS platform, the Medallia Experience Cloud (MEC). In essence, MEC picks up user experience interactions and employs AI technology to reveal predictive insights. Said insights are then used by companies to take profitable business actions. Similar to our other entries, Medallia’s services help companies optimize customer interactions. As expected, this has put MDLA stock in the limelight. With the company’s shares up by over 160% since early April, you might be wondering if it still has room to grow.
In its recent quarter fiscal posted in November, Medallia reported solid figures. It posted total revenue of $121 million and ended the quarter with $497 million in cash on hand. On top of that, the company added a record number of new customers in the quarter. Just this week, Medallia announced two new clients from unique sectors. Firstly, it was picked up by a multinational hotel management company, Aimbridge Hospitality, on February 1.Source: TD Ameritrade TOS
Medallia will provide customer experience support for Aimbridge’s properties across North America. Then, on Wednesday, Medallia revealed a new collaboration with Europe’s largest operator of energy networks, E.ON. Safe to say, Medallia is firing on all cylinders. Do you think MDLA stock will follow suit?