Top SaaS stocks on Wall Street

Summary

• Adobe (ADBE)stock gave a 21.01% return YTD. Its closing price on July 14 was US$608.83.
• com Ltd. (WIX) stock closed at US$281.23 on July 14, 2021. It gave a 10.27% return YTD.
• Shopify Inc. (SHOP)stock closed at US$1463.00 on July 14, and it gave a 26.46% return YTD.

Software-as-a-Service (SaaS) is the name of the facility or licensing model where the software is not located in-house. In SaaS, the software is provided on an external server, and one can access it online. Software companies are using SaaS for ease and comprehensive coverage.

Here we discuss eight SaaS stocks in the market.

Wix.com Ltd. (NASDAQ:WIX) is a cloud-based development platform provider. Its core products include Wix editor, Wix ADI and Corvid for primary users, novice users, and tech-savvy users, in sequence.

WIX’s market capitalization is US$ 15.9 billion. WIX was founded in 2006, and its revenue is constantly increasing for four years, as per data. 

The company’s total revenue in Q1 was US$ 304.1 million, up 41% YoY. Its GAAP net loss was US$ 121.75 million, or net loss per share diluted was US$ 2.16.

The stock closed at US$ 281.23 on July 14, 2021. It gave a 10.27% return YTD.

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Source: Pixabay

Smartsheet Inc. (NYSE:SMAR) provides a cloud-based platform to enable organizations to plan, automate, manage, and better report on work. Its primary source of revenue is subscriptions. 

Its market capitalization is US$ 8.96 billion. SMAR was founded in 2005.

SMAR’s total revenue for the Q1 ended April 30, 2021, was US$ 117 million from subscription and professional services, a 37% increase year-over-year. However, it incurred a net loss of US$ 37.07 million, a 33% increase in loss year-over-year.

The stock price rose 1.76% YTD and closed at US$ 72.41 on July 14, 2021.

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Shopify Inc. (NYSE:SHOP) has a US$ 180 billion market capitalization with a P/E ratio of 113.4. Shopify provides an e-commerce platform to small and midsize companies. It generates revenue from its subscription solution segment and merchant solution segment. 

Shopify’s revenue in Q1 ended March 31, 2021, was US$988.6 million, 110% growth year-over-year. Its net income was US$ 1,258.4 million, or US$ 9.94 per diluted share, compared with a net loss of US$ 31.4 million, or US$ 0.27 per diluted share for Q1, 2020.

The share closed at US$ 1463 on July 14, 2021, and it gave a 26.46% return YTD.

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DocuSign, Inc. (NASDAQ:DOCU) provides a cloud-based software suite to transform the foundational element of business that is agreement. The software is used for e-signatures and can be used in almost all devices. It was founded in 2003 is based in San Francisco, California.

It has a market cap of US$53 billion. It brought the initial public offering in May 2018.

Its total revenue for Q1 ended April 30, 2021, was US$ 469 million, a 58% increase year-over-year. However, it booked a net loss of US$ 8.35 million, an 82% decrease in loss year-over-year. 

DOCU stock price rose 24.66% YTD and closed at US$ 275.43 on July 14, 2021.

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Zendesk, Inc. (NYSE:ZEN) is a software development company founded in 2007. It provides software solutions via the Sunshine suite. It will release the second-quarter result on July 29.

It has a market cap of US$16 billion.

Its total revenue for the March quarter of 2021 was US$ 298 million, and net loss was US$ 48.97 million, a 26% and 14% increase year-over-year, respectively.

ZEN’s stock price grew -6.7% YTD and closed at US$ 137.62. 

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Source: Pixabay

Adobe Inc. (NASDAQ:ADBE) has a US$ 288 billion market capitalization and a P/E ratio of 52.4. 

Adobe was founded in 1982. The company provides various products and services used by designers and developers, video editors, photographers, communicators, content creators, students, marketers, businesses of all sizes, and consumers. 

Its total revenue for the quarter ended June 4, 2021, was US$ 3.84 billion compared to US$ 3.13 million for the same period a year ago. The net income was US$ 1.12 or diluted net income per share of US$ 2.32.

ADBE stock gave 21.01% YTD. The closing price for July 14, 2021, was US$ 608.83.

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Salesforce.com Inc. (NYSE:CRM) was founded in 1999. It provides cloud-computing solutions.

Salesforce has a market capitalization of US$ 219 billion and a P/E ratio of 49.48. 

For the quarter ended April 30, 2021, CRM’s total revenue was US$ 5.96 billion, and net income was US$ 469 million, 23% and 374% increase year-over-year, respectively.

The stock price witnessed a 6.36% YTD and closed at US$ 242.43 on July 14, 2021.

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Bandwidth Inc. (NASDAQ:BAND) is a cloud communication company that provides easy-to-use software APIs to other companies. Clients use these Application Programming interfaces (API) for voice, messaging, and emergency services to improve products and services experience.

Its market capitalization is US$ 3.17 billion. BAND was founded in 1999.

Its revenue increased 66% Year-over-year to US$ 113.48 million in the March quarter of 2021, and net loss was US$ 5.3 million compared to US$ 1.06 million for the same quarter a year ago.

The stock price increased -17.67% YTD and closed at US$ 128.51 on July 14, 2021.  

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

The reference data in this article has been partly sourced from Refinitiv.