3 Trending SaaS Stocks To Watch Right Now
The Software-as-a-Service (SaaS) industry remains highly relevant in the world today. By extension, some would argue that this makes SaaS stocks viable plays in the stock market today. After all, software is a key component in our increasingly tech-reliant society today. The SaaS or sometimes known as the “on-demand software” business model, has and continues to gain in popularity. Notably, this is apparent across the board from consumer markets to organizational settings. As a result of all this, it would not surprise me to see investors eyeing the top SaaS stocks in the stock market now.
At the same time, there is no shortage of excitement in the SaaS space now. As of last week, cybersecurity titan CrowdStrike (NASDAQ: CRWD) is currently working together with web infrastructure firm Cloudflare (NYSE: NET). Through the CrowdXDR Alliance, the duo, alongside other partners, are working on delivering deeper integrations between their software offerings. According to CrowdStrike, this will see better support for customers across tech categories. This includes but is not limited to cloud computing, the Internet of Things (IoT), and network applications. Namely, there would be increased demand for related solutions in these fields after the initial wave of digital acceleration at the onslaught of the pandemic. Likewise, CRWD stock and NET stock have more than doubled in value since their pandemic era lows.
If that wasn’t enough, Wedbush Securities analysts Dan Ives and John Katsingris recently provided an update on the cybersecurity industry’s prospects. In essence, Ives and Katsingris argue that there is “massive strength” in the cybersecurity space. Both analysts cite the rapid rise in cyber attacks for this outlook. This is but one section of the booming SaaS market today. Could one of these SaaS stocks be your next big investment?
Top SaaS Stocks For Your January 2022 Watchlist
- ServiceNow Inc. (NYSE: NOW)
- Alphabet Inc. (NASDAQ: GOOGL)
- Palo Alto Networks Inc. (NASDAQ: PANW)
ServiceNow
For starters, we will be taking a look at ServiceNow. In brief, the company primarily offers cloud computing solutions through its proprietary platform. Through said platform, ServiceNow helps companies manage their digital workflows for enterprise operations. Overall, with more enterprises postponing their respective return to physical offices, ServiceNow’s work remains relevant. Even with gains of over 150% since its pandemic era low, should investors be keeping an eye on NOW stock?
Well, if anything, the company appears to be hard at work on the operational front now. As of earlier this month, the company is now working with Qualtrics (NASDAQ: XM). In a nutshell, Qualtrics is an experience management company that helps organizations collect data on customer experiences. Regarding the current partnership, the duo are now offering new joint capabilities to their joint customers. This mainly encompasses the ability to deliver personalized service experiences that combine the best of ServiceNow’s digital workflows and Qualtrics’ experience management tech.
Commenting on all this is ServiceNow VP of Customer Workflow Product, Michael Ramsey. Ramsey notes that organizations nowadays need to “deliver empathy at mass scale in every interaction” be it digital or in-person. As such, he believes that ServiceNow’s collaboration with Qualtrics will help drive meaningful growth for their customers well into 2022. With that said, would you consider adding NOW stock to your watchlist today?
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Alphabet
Following that, we will be taking a look at Alphabet‘s subsidiary Google. To be precise, our focus today is the company’s Google Cloud platform. With Google Cloud, organizations and consumers alike have access to a holistic suite of cloud computing services. The likes of which are tightly integrated with Google’s core end products such as Google Search, Gmail, Google Drive, and YouTube. For a sense of scale, Google Cloud raked in a total revenue of $4.99 billion in its latest quarter. This marks a solid year-over-year increase of about 44.8%.
Nevertheless, the Google Cloud division is not resting on its laurels just yet. This is evident from its active partnerships with the likes of Verizon (NYSE: VZ) and Kyndryl (NYSE: KD). On one hand, Google Cloud is working together with Verizon to bring 5G mobile edge computing services to market. According to Verizon, this means providing “compute and storage services to the network edge”, supporting real-time enterprise applications.
On the other hand, the division’s work with Kyndryl involves focusing on accelerating digital transformation efforts for a wide array of clients. Notably, this is possible through Google’s expertise in data analytics, applied artificial intelligence (AI), and infrastructure modernization. All in all, Google brings a lot to the SaaS stage in the form of Google Cloud. Should investors be looking to bet on a top SaaS stock, some might be considering GOOGL stock now.
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Palo Alto Networks
Another name to consider among SaaS firms today would be Palo Alto Networks or PANW for short. For the most part, it is a multinational cybersecurity company. In particular, PANW’s clients have access to its wide array of cybersecurity solutions via the company’s platform. Among the core services it offers are advanced firewalls and cloud-based offerings. Both of which work in tandem to extend PANW’s comprehensive digital protection across expansive tech ecosystems.
As it stands, PANW stock is currently sitting on gains of over 55% year-to-date. Despite its current momentum, the company does not seem to be slowing down anytime soon. Just this month, PANW stock became part of the Nasdaq-100 Index. CEO Nikesh Arora commented, “As businesses and governments tackle digital transformation and rapid cloud adoption amid growing threats, Palo Alto Networks’ continuous innovation across network security, cloud security, and security operations is helping them prepare for what’s next. We are proud to join other great companies on the Nasdaq-100 – among them many of our customers and partners.”
Moreover, PANW also received positive news regarding its ongoing partnership with Google as well. On December 8, 2021, Google Cloud revealed new threat detection capabilities via the launch of Cloud IDS. The cloud-native network security offering serves to “provide simplified deployment and use” according to Google. Given all of this, could PANW stock be a top stock to watch for you?
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