Saas stocks

The best SaaS stocks depend on your portfolio and investment goals — while volatility can be ideal for day traders, long-term investors will want to look to stocks with steadier gains over time.

Our picks for the best SaaS stocks

We round up a selection of stocks in or related to the software-as-a-service industry, weighting the list more heavily towards popular mid- and large-cap US stocks.

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1. Microsoft Corporation (MSFT)

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. The company operates in three segments: Productivity and Business Processes, Intelligent Cloud, and More Personal Computing. The Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, Microsoft Viva, and Skype for Business; Skype, Outlook.

• Previous close price: $323.38
• Market capitalization: $2,481,074,208,768
• 1 year performance: 19.76%
• P/E ratio: 36.1126

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2. Salesforce-com (CRM)

Salesforce, Inc. provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide. The company's service includes sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and relationship intelligence, and deliver quotes, contracts, and invoices; and service that enables companies to deliver trusted and highly personalized customer service and support at scale.

• Previous close price: $205.73
• Market capitalization: $208,433,987,584
• 1 year performance: N/A
• P/E ratio: 967.7272

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3. Adobe Systems Incorporated (ADBE)

Adobe Inc. , together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising.

• Previous close price: $418.32
• Market capitalization: $200,162,918,400
• 1 year performance: 7.45%
• P/E ratio: 42.08

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4. Shopify (SHOP)

Shopify Inc. , a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The company's platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing.

• Previous close price: $59.56
• Market capitalization: $82,617,794,560
• 1 year performance: -81.75%

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5. Wix-Com (WIX)

Wix. com Ltd. , together with its subsidiaries, develops and markets a cloud-based platform that enables to create a website or web application in North America, Europe, Latin America, Asia, and internationally.

• Previous close price: $73.99
• Market capitalization: $4,200,811,776
• 1 year performance: 18.33%

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6. Slack Technologies (WORK)

Slack Technologies, Inc. operates Slack, a business technology software platform in the United States and internationally. Its platform brings together people, applications, and data, as well as sells its offering under a software-as-a-service model.

• Previous close price: $44.29
• Market capitalization: $26,519,519,232
• 1 year performance: N/A

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7. Zoom Video Communications (ZM)

Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.

• Previous close price: $66.50
• Market capitalization: $20,679,350,000
• 1 year performance: N/A
• P/E ratio: 203.89

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8. Datadog (DDOG)

Datadog, Inc. operates an observability and security platform for cloud applications in North America and internationally. The company's products include infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, network monitoring, incident management, observability pipelines, cloud cost management, universal service monitoring, cloud security management, application security management.

• Previous close price: $93.59
• Market capitalization: $30,549,157,888
• 1 year performance: N/A

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9. DocuSign (DOCU)

DocuSign, Inc. provides electronic signature solution in the United States and internationally. The company provides DocuSign e-signature solution that enables sending and signing of agreements on various devices; Contract Lifecycle Management (CLM), which automates workflows across the entire agreement process; and Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce.

• Previous close price: $57.22
• Market capitalization: $11,576,578,048
• 1 year performance: -16.80%

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10. Dropbox (DBX)

Dropbox, Inc. provides a content collaboration platform worldwide. The company's platform allows individuals, families, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features.

• Previous close price: $23.40
• Market capitalization: $8,455,086,080
• 1 year performance: N/A
• P/E ratio: 15.3766

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11. Alphabet Inc Class A (GOOGL)

Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments.

• Previous close price: $122.50
• Market capitalization: $1,558,616,473,600
• 1 year performance: -94.76%
• P/E ratio: 26.864

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12. Block (SQ)

Block, Inc. , together with its subsidiaries, creates tools that enables sellers to accept card payments and provides reporting and analytics, and next-day settlement. The company provides hardware products, including Square Register that combines its hardware, point-of-sale software, and payments technology; Square Terminal, a payments device and receipt printer to replace traditional keypad terminals, which accepts tap, dip, and swipe payments; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; Square Reader for contactless and chip that accepts EMV chip cards and NFC payments, enabling acceptance through Apple Pay, Google Pay, and other mobile wallets; and Square Reader for magstripe, which enables swiped transactions of magnetic-stripe cards by connecting with an iOS or Android smartphone or tablet through the headphone jack or Lightning connector.

• Previous close price: $66.24
• Market capitalization: $39,699,320,832
• 1 year performance: -39.05%

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13. Cloudera (CLDR)

Cloudera, Inc. offers a suite of data analytics and management products in the United States, Europe, and Asia. The company operates through two segments, Subscription and Services.

• Previous close price: $15.77
• Market capitalization: $4,736,509,440
• 1 year performance: N/A

Buy SaaS stocks from these online trading platforms

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Note: The dollar amounts in the table below are in Canadian dollars.

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

Bottom line

While it's possible to turn a profit investing in SaaS stocks, keep in mind that — like any investment — SaaS stocks are not immune to risk. These stocks are subject to fluctuating conditions — both in the market and in the software-as-a-service industry, so carefully vet your picks before you invest. And if you're new to investing, or if it's been awhile since you've taken a critical look at your investing accounts, compare brokers to make sure you're getting the best features in your trading account.