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SaaS stocks

Ready to invest in the software-as-a-service industry? Consider these 13 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.

13 SaaS stocks to watch

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.

  1. Microsoft Corporation (MSFT)
  2. Salesforce-com (CRM)
  3. Adobe Systems Incorporated (ADBE)
  4. Shopify (SHOP)
  5. Wix-Com (WIX)
  6. Slack Technologies (WORK)
  7. Zoom Video Communications (ZM)
  8. Datadog (DDOG)
  9. DocuSign (DOCU)
  10. Dropbox (DBX)
  11. Alphabet Inc Class A (GOOGL)
  12. Block (SQ)
  13. Cloudera (CLDR)

Compare trading platforms

Compare online trading platforms by fees, asset types and bonuses to find the best for your investment in SaaS stocks.
1 - 5 of 5
Name Product Asset types Signup bonus
eToro
Stocks, ETFs, Cryptocurrency
$10
when you sign up and deposit $100
Trade stocks in the app or online with $0 commissions. Not available in NY, NV, MN, or TN.
Client disclaimer: US Brokerage services through eToro USA Securities Inc, member of FINRA, SIPC. Crypto assets through eToro USA LLC.
SoFi Invest
Stocks, ETFs, Cryptocurrency
$10 - $100
when you open an account and place a first crypto trade of $50 - $5,000+
A free way to invest in most equities.
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Stocks, Options, ETFs, Cryptocurrency
$200 in US stocks
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Trade stocks, options, ETFs and futures on mobile or desktop with this advanced platform.
Robinhood
Stocks, Options, ETFs, Cryptocurrency
Get a free stock
when you open a Robinhood account
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Axos Bank Self Directed Investing
Stocks
$150
when you open an account and deposit at least $1500.
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Take a deeper dive into SaaS stocks

If you're interested in investing in the software-as-a-service industry, take a closer look at what companies in this industry do and how the stocks have historically performed. Keep in mind that positive past performance doesn't guarantee that a stock will continue to rise in the future.

1. Microsoft Corporation (MSFT)

Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Its Productivity and Business Processes segment offers Office, Exchange, SharePoint, Microsoft Teams, Office 365 Security and Compliance, and Skype for Business, as well as related Client Access Licenses (CAL); Skype, Outlook. com, OneDrive, and LinkedIn; and Dynamics 365, a set of cloud-based and on-premises business solutions for organizations and enterprise divisions.

Microsoft Corporation stock opened the day at $256.03 after a previous close of $259.58. The latest price was $262.85 (25-minute delay). Microsoft Corporation is listed on the NASDAQ, has a trailing 12-month revenue of around USD192.6 billion and employs 181,000 staff.

  • Market capitalization: $1,941,406,482,432
  • P/E ratio: 27.096
  • PEG ratio: 1.7858

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2. Salesforce-com (CRM)

Salesforce, Inc. provides customer relationship management technology that brings companies and customers together worldwide. Its Customer 360 platform empowers its customers to work together to deliver connected experiences for their customers.

Salesforce-com stock opened the day at $166.21 after a previous close of $168.20. The latest price was $172.24 (25-minute delay). Salesforce-com is listed on the NYSE, has a trailing 12-month revenue of around USD$27.9 billion and employs 77,810 staff.

  • Market capitalization: $167,359,004,672
  • P/E ratio: 163.301
  • PEG ratio: 1.7705

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3. Adobe Systems Incorporated (ADBE)

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

Adobe Systems Incorporated stock opened the day at $363.50 after a previous close of $368.48. The latest price was $376.49 (25-minute delay). Adobe Systems Incorporated is listed on the NASDAQ, has a trailing 12-month revenue of around USD$16.7 billion and employs 25,988 staff.

  • Market capitalization: $172,963,348,480
  • P/E ratio: 36.065
  • PEG ratio: 1.8164

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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.

Shopify stock opened the day at $30.84 after a previous close of $31.41. The latest price was $34.00 (25-minute delay). Shopify is listed on the NYSE, has a trailing 12-month revenue of around USD$4.8 billion and employs 10,000 staff.

  • Market capitalization: $39,621,201,920
  • P/E ratio: 241.6154
  • PEG ratio: -94.58

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5. Wix-Com (WIX)

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

Wix-Com stock opened the day at $67.91 after a previous close of $68.21. The latest price was $72.15 (25-minute delay). Wix-Com is listed on the NASDAQ, has a trailing 12-month revenue of around USD$1.3 billion and employs 4,789 staff.

  • Market capitalization: $3,919,537,408
  • PEG ratio: 0.09

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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.

Slack Technologies stock opened the day at $44.05 after a previous close of $44.29. The latest price was $44.47 (25-minute delay). Slack Technologies is listed on the NYSE, has a trailing 12-month revenue of around USD$974.3 million and employs 2,597 staff.

  • Market capitalization: $26,519,519,232

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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.

Zoom Video Communications stock opened the day at $110.56 after a previous close of $110.97. The latest price was $120.42 (25-minute delay). Zoom Video Communications is listed on the NASDAQ, has a trailing 12-month revenue of around USD$4.2 billion and employs 7,155 staff.

  • Market capitalization: $33,111,005,184
  • P/E ratio: 27.0659
  • PEG ratio: 4.2974

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8. Datadog (DDOG)

Datadog, Inc. provides monitoring and analytics platform for developers, information technology operations teams, and business users in the cloud in North America and internationally. The company's SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, and security monitoring to provide real-time observability of its customers technology stack.

Datadog stock opened the day at $100.92 after a previous close of $101.05. The latest price was $108.38 (25-minute delay). Datadog is listed on the NASDAQ, has a trailing 12-month revenue of around USD$1.2 billion and employs 3,200 staff.

  • Market capitalization: $31,832,467,456
  • P/E ratio: 33683.336
  • PEG ratio: 3.1237

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9. DocuSign (DOCU)

DocuSign, Inc. provides electronic signature software in the United States and internationally. The company provides e-signature solution that enables businesses to digitally prepare, sign, act on, and manage agreements.

DocuSign stock opened the day at $60.41 after a previous close of $61.22. The latest price was $65.32 (25-minute delay). DocuSign is listed on the NASDAQ, has a trailing 12-month revenue of around USD$2.2 billion and employs 7,461 staff.

  • Market capitalization: $12,240,572,416
  • PEG ratio: 2.1515

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10. Dropbox (DBX)

Dropbox, Inc. provides a content collaboration platform worldwide. Its 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.

Dropbox stock opened the day at $21.71 after a previous close of $21.90. The latest price was $22.35 (25-minute delay). Dropbox is listed on the NASDAQ, has a trailing 12-month revenue of around USD$2.2 billion and employs 2,667 staff.

  • Market capitalization: $7,371,057,664
  • P/E ratio: 22.2352
  • PEG ratio: 2.661

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11. Alphabet Inc Class A (GOOGL)

Alphabet Inc. provides 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.

Alphabet Inc Class A stock opened the day at $2,142.01 after a previous close of $2,174.75. The latest price was $2,265.26 (25-minute delay). Alphabet Inc Class A is listed on the NASDAQ, has a trailing 12-month revenue of around USD$270.3 billion and employs 163,906 staff.

  • Market capitalization: $1,434,225,868,800
  • P/E ratio: 19.7167
  • PEG ratio: 0.7701

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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. It provides hardware products, including Magstripe reader, which enables swiped transactions of magnetic stripe cards; Contactless and chip reader that accepts Europay, MasterCard, and Visa (EMV) chip cards and Near Field Communication payments; Square Stand, which enables an iPad to be used as a payment terminal or full point of sale solution; 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.

Block stock opened the day at $61.84 after a previous close of $66.74. The latest price was $66.73 (25-minute delay). Block is listed on the NYSE, has a trailing 12-month revenue of around USD$16.6 billion and employs 8,521 staff.

  • Market capitalization: $37,094,207,488
  • PEG ratio: 3.3071

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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.

Cloudera stock opened the day at $15.76 after a previous close of $15.77. The latest price was $15.78 (25-minute delay). Cloudera is listed on the NYSE, has a trailing 12-month revenue of around USD$904.8 million and employs 2,728 staff.

  • Market capitalization: $4,736,509,440
  • PEG ratio: -0.84

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How to buy SaaS stocks

Sign up with an online broker or platform to invest in one or more of these SaaS stocks.

  1. Compare share trading platforms. Use our comparison table to narrow down top brokers by fees and bonuses.
  2. Open and fund your brokerage account. You’ll need personal and financial details, like your contact and bank information.
  3. Search for the stock you're interested in. Find the stock by name or ticker symbol, like MSFT or CRM.
  4. Decide on how many to buy. Some brokers will allow you to purchase fractional shares, while others require you to purchase whole shares.
  5. Choose an order type. Invest in the SaaS stocks now with a market order or use a limit order to delay your purchase until the stock reaches your desired price.
  6. Buy the stock. Tap or click the Buy button on your brokerage account. Once you’ve invested in the software-as-a-service industry, track how your stock performs to decide when it’s time to sell.

The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

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.

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