Are These Top Software Stocks Worth Investing In This Week?
Investors seem to be flocking back to the broader tech sector as of yesterday. Because of this, software stocks could be in their sights again. Accordingly, this is due to Federal Reserve Chairman Jerome Powell's prepared comments for today's congressional hearing. In the comments, Powell warned that economic recovery remains "far from complete". Where does that leave software stocks? Well, for starters, we saw countless organizations bump up their enterprise infrastructure spending over the past year. Having made those investments, it would make sense then that they would continue making the most of said services. This is where Software-as-a-Service (SaaS) companies, and by extension software stocks, come into play.
For instance, companies like Salesforce (NYSE: CRM) and Workday (NASDAQ: WDAY) operate on a subscription basis. Both of these companies provide crucial enterprise services that organizations will likely continue to rely on moving forward. With the convenience and efficiency brought on by their services, this could be the case. Not to mention, software is continuously being updated to meet the shifting dynamics of the world today. Having read this far, you might be keen on investing in the sector yourself. If you are, here are four of the top software stocks to add to your watchlist before April 2021.
Top Software Stocks To Watch This Week
Starting us off is educational software company, 2U. Generally, the company contracts with non-profit colleges and universities to offer online degree programs. In turn, 2U's client institutions can access the company's cloud-based SaaS platform. The likes of which contain tools related to coursework design and infrastructure support. Given the global adoption of online learning, 2U's services would still be viable right now. As institutions of higher learning rely on 2U, investors appear to be flocking to TWOU stock as well. Evidently, the company's shares have surged by over 120% over the past year.
Just last month, 2U announced a major partnership with Guild Education, a workforce education company. Through this collaboration, employees within Guild's employer partners will have access to 2U's online course offerings. If anything, 2U's services would allow employers to upskill their current workforce virtually. This would help companies adapt to rapid changes in their respective markets while boosting future competitiveness. For 2U, this marks a significant boost in addressable market as well seeing as Guild works with Fortune 1,000 employers. Said employers include, Walmart (NYSE: WMT), Disney (NYSE: DIS), and Chipotle (NYSE: CMG). Given 2U's current momentum, would you consider TWOU stock a buy right now?
Following that is Massachusetts-based software company, Dynatrace. In brief, the company operates via an artificial intelligence (AI) based platform. Said platform monitors and optimizes application performance and development, IT infrastructure, and user experiences. Notably, Dynatrace's platform boasts automatic and intelligent observability at scale. What this means is that it can precisely reveal how a company's applications are working in real-time. In turn, this allows clients to innovate faster, collaborate more efficiently, and gain more actionable insights. No doubt, such versatile software would make for a crucial component of any organization's digital infrastructure. So much so that the likes of Kroger (NYSE: KR) and Carnival Corporation (NYSE: CCL) rely on Dynatrace's services. After having more than doubled in the past year, could DT stock still have room to run this year?
For one thing, Dynatrace does not seem to be resting on its laurels just yet. Just this month, the company strengthened its existing collaborations with Amazon (NASDAQ: AMZN) and Microsoft (NASDAQ: MSFT). On March 10, Dynatrace was awarded the Amazon Web Services (AWS) Machine Learning Competency status. AWS hailed Dynatrace for demonstrating deep experience and proven customer success via its AI-powered solutions on the AWS platform. Less than a week later, Dynatrace expanded its strategic collaboration with Microsoft Azure. As such, Dynatrace's observability platform is available for purchase on the Microsoft Azure Marketplace. With Dynatrace firing on all cylinders, do you see DT stock following suit?
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Another software stock to know now would be Medallia. For some context, the company provides customer and employee experience management solutions. Through its award-winning SaaS platform, Medallia captures billions of customer and employee experience signals. Subsequently, it employs AI and machine learning to analyze and transform these signals into predictive insights for organizations. According to Medallia, said insights are then used to "drive power business actions and outcomes". Simply put, Medallia helps its clients make the most of their consumer interactions. Despite all this, MDLA stock has mostly been trading sideways this year. Could now be the time to invest in it?
Regardless, Medallia has been hard at work bolstering its current offerings. Just last week, news broke of the company collaborating with conversational AI provider LivePerson (NASDAQ: LPSN). The duo is currently working to integrate conversations and surveys to help brands measure customer signals in real-time. According to LivePerson, this would make the process of managing customer and employee feedback "seamless". Through this partnership, over 18,000 brands can automatically trigger Medallia's systems inside LivePerson conversations while interacting with millions of consumers. Given the massive exposure Medallia is receiving now, will you be investing in MDLA stock?
Mogo is a fintech company that is based in Vancouver, Canada. Its software empowers consumers with simple solutions to help them get in control of their financial health. Through the company's app, consumers can access a digital spending account with a Mogo Visa Platinum Prepaid Card. Its features include automatic carbon offsetting, buying and selling bitcoin, ID fraud protection, and personal loans. Its subsidiary, Carta Worldwide, also offers a digital payments platform that powers the next-generation of card programs from innovative fintech companies. MOGO stock currently trades at $10.63 as of Tuesday's closing bell.
Today, the company announced that it will be entering a $4 trillion Canadian wealth management industry with the acquisition of leading saving and investing app, Moka Financial Technologies Inc. in an all-stock transaction. The proposed acquisition will increase Mogo's member base by over 40% to more than 1.7 million users. The acquisition will also expand Mogo's wealth offering to include saving and investing products. This would represent a significant milestone for the company to be a leading digital wallet for Canadians. With such exciting developments surrounding the company, will you consider buying MOGO stock?
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