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.
- Microsoft Corporation (MSFT)
- salesforce-com (CRM)
- Adobe (ADBE)
- Shopify (SHOP)
- Wix-com (WIX)
- Slack Technologies (WORK)
- Zoom Video Communications (ZM)
- Datadog (DDOG)
- DocuSign (DOCU)
- Dropbox (DBX)
- Alphabet (GOOGL)
- Block (SQ)
- Cloudera (CLDR)
3 tools to help identify new investments
We've compiled a list of SaaS stocks to keep an eye on, but the stock market is volatile, and trends can change daily.
If you're actively trading stocks, staying on top of new industry trends and rising stocks can take a lot of time. Here are some of my favourite tools to keep up with trends and get new trading ideas.
- Stock screeners. You can use an online stock screener like Finviz or TradingView to see what stocks are making the biggest moves today and narrow your search by industry and market cap. Screeners are most beneficial for technical traders who have set criteria in mind for their trades. For example, if you're looking for stocks trending today in the software-as-a-service industry, you can pull a list of all mid-cap and large-cap stocks for that industry and sort by percent change since opening.
- Newsletters. Some of my favourites include the Motley Fool Stock Advisor and the Alpha Boost and Cherry Picks newsletters published by Tastyworks. Newsletters can be a great way to find companies that may be worth investing in for the long haul.
- Social media. While I'd never make a trade based on a Reddit thread alone, social platforms like Reddit, Twitter and Tiktok can be useful tools for staying on top of what companies people are talking about. The trendiness of a stock can directly influence its price — but those trends can also be volatile. While social media can occasionally help buy-and-hold investors, it tends to be a more practical tool for active traders.
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.
How to buy SaaS stocks
Sign up with an online broker or platform to invest in one or more of these SaaS stocks.
- Compare share trading platforms. Use our comparison table to narrow down top brokers by fees and bonuses.
- Open and fund your brokerage account. You'll need personal and financial details, like your contact and bank information.
- Search for the stock you're interested in. Find the stock by name or ticker symbol, like MSFT or CRM.
- Decide on how many to buy. Some brokers will allow you to purchase fractional shares, while others require you to purchase whole shares.
- 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.
- 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.
Compare trading platforms
Compare online trading platforms by fees, asset types and bonuses to find the best for your investment in SaaS stocks.
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Important: The standard brokerage fee displayed is the trade cost for new customers to purchase $1,000 of either Australian or US shares. Where a platform charges different fees for both US and Australian shares we show the lower of the two. Where both CHESS sponsored and custodian shares are offered, we display the cheapest option.
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.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, 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 CFDs and 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. Read the Product Disclosure Statement (PDS) and Target Market Determination (TMD) for the product on the provider's website.
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