The best growth stocks to buy now? 4 software stocks to watch out for
4 software actions to consider adding to your watchlist in September 2021
When looking for the best stocks to buy on the stock market, software stocks are often on the radar of many investors. With the pace of changes in the industry, software companies are ready to spend billions of dollars to upgrade and improve their offerings to solidify their position. Yesterday Bloomberg reported that the financial software company Intuit (NASDAQ: INTU) has started talks with Mailchimp to buy the marketing company for more than $ 10 billion. If the deal goes through, it will bring together two small business service providers. In addition, it is believed to be the largest acquisition by Intuit after paying $ 7.1 billion for Credit Karma last year.
Even gadgets known for their sleek hardware need reliable software to run well. For example, Apple‘s (NASDAQ: AAPL) Macbooks and iPhones look amazing on the outside with their designs. However, without software, they would be just beautiful pieces of metal. Overall, as software continues to play an important role, companies are also aggressively improving their offerings. Now, would you be interested in a list of the top software stocks on the stock market today?
Best Software Stocks To Buy [Or Sell] In September 2021
To start the list, we’ll take a look at the software giant that doesn’t need to be introduced, Microsoft. The world leader in software appeared in the 1980s with its Windows operating system. Since then, the company has never looked back and is now one of the biggest tech companies in the world. Even now, the company continues to grow and its stock has increased by over 35% since the start of the year.
Yesterday, Microsoft finally announced the highly anticipated release date for its Windows 11. Qualifying Windows 10 personal computers (PCs) will receive a free upgrade to Windows 11 starting October 5, 2021. Meanwhile, PCs preloaded with Windows 11 will begin to become available for purchase. This is a significant rollout as analysts estimate it could contribute up to 19% of Microsoft’s overall profit margins this year.
The new operating system will be equipped with a new Microsoft Store for applications and games. This release would put pressure on competitor Apple, as it plans to cut 15%, as opposed to Apple’s standard 30% developer share for apps on its platform. Additionally, Microsoft claims this update would be the best Windows ever for gaming, as it unleashes the full potential of your system’s hardware. Safe to say, these are all exciting developments for the company in the coming months. So, would you consider adding MSFT stocks to your portfolio?
Unity Software Inc
Subsequently, we will examine Unity. Gaming enthusiasts would be no strangers to the company. But for those who aren’t familiar, the company has a platform to create and mine interactive three-dimensional content in real time. The content produced with Unity is in real time, which allows it to adapt to user behavior and feedback. U stock has risen over 85% in the past year.
Last week Unity announced the acquisition of OTO. The company is an AI-powered acoustic intelligence platform that helps create and foster safer gaming environments with voice and text chat environments. The rise of toxic behaviors that lead to a bad player experience has resulted in lost revenue for game makers. Thus, OTO will be integrated with Unity’s Vivox platform to solve this problem. Now, that would give creators a scalable solution to design safe virtual environments that promote user-friendly experiences.
In the second quarter, Unity reported revenue of $ 273.6 million, up 48% from the previous year’s quarter. This is the 11th consecutive quarter the company has seen growth of 30% or more as the company crosses $ 1 billion in annual revenue. All in all, is U Stock a top notch software stock for you to buy?
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DocuSign is a software company that helps organizations connect and automate the preparation, signing and management of agreements. With the company’s DocuSign Agreement Cloud, agreements can be signed electronically on a variety of devices. By eliminating the paper for the agreement, DocuSign shortens the time period for entering into agreements and increases the effectiveness of any trade agreement.
Earlier this week, DocuSign hired Google Cloud and Oracle (NYSE: ORCL), Ed Knott, to lead its operations in Australia and New Zealand. Now Mr. Knott will assume the role of regional vice president for the region. In the past, he spent nearly 10 years at Oracle in various customer-facing roles. He then moved to senior positions at Google, where he was instrumental in growing the Australian Google Cloud business. DocuSign hopes the new hire will propel growth in the region.
Financially, the company has also been in full swing. In its first quarter, the company’s revenue grew 58% year-over-year to $ 469.1 million. In addition, it continues to generate cash, with operating cash flow and free cash flow increasing by 129% and 275% respectively. With the digitalization of the world well underway, this could benefit DocuSign in the long run. With all that is said and done, would you bet on the future of the DOCU action before the publication of its results report scheduled for September 2?
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Last but not least, we have MicroStrategy. Essentially, the company is a provider of enterprise software platforms around the world. It is responsible for the design, development, marketing and sale of its software platform through licensing agreements, cloud-based subscriptions and related services. MSTR’s stock has increased by over 350% in the past year.
At the end of July, the company announced its financial results for the second quarter. It continues to deliver exceptional operational performance at all levels. The company had one of its best operating quarters in its software business. This was evidenced by its revenue of $ 125.4 million, representing a 13.4% year-over-year growth.
Most recently, CEO Michael Saylor announced in a tweet that the company had purchased additional bitcoin for around $ 177 million in cash. He also pointed out that the company now owns nearly 109,000 bitcoins acquired for around $ 2.918 billion. The company intends to continue to deploy additional capital in its digital asset strategy as it has yielded satisfactory results. With this in mind, do you agree with the company’s growth strategies? If you do, would you consider investing in MSTR stocks?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.