Software applications are computer programs designed to carry out specific tasks. These tasks usually relate to the operation of the computer. Some examples include; Adobe Photoshop, Word Photoshop, Microsoft Word, Google Chrome, and many others. Software applications include all applications that allow individuals to perform specific tasks on their devices. On mobile phones, they are commonly referred to as apps and may either come with the system software or get published separately for users to get on their devices by their preferences.
Worldwide, the Software application industry is big and well-accepted; this is because many people have digital appliances, whether phones, computers, or even both, and there is a very high chance that there is at least one of the software applications in these devices. You may be wondering: why should I invest in application software stocks?
Investing in application software stocks can be very profitable, and it is an excellent addition to your portfolio as a trader. It is only necessary for investors and traders to watch the stock of software applications because it can indicate trends in the tech industry. Also, a rise in the sale of hardware and related services will mean that there will be a rise in the request for application software.
In this article, we will help traders and investors see why they should add application software stock to their portfolios. Investing and trading is easy and enjoyable with the global trading platform VSTAR; we will give an in-depth guide on how investors can trade application software stocks CFD using the VSTAR app.
Palantir Technologies Inc. (NYSE: PLTR)
Palantir Technologies Inc. (NYSE: PLTR) is a company that specializes in data analysis, and they deal with handling big data. In its early years, Palantir struggled to find investors, but by 2013, it disclosed over $196 million in funding. In 2013, Palantir announced that they would not be going public, and by December of the same year, they got valued at $9 billion.
Their principal goal is to build software that helps in counterterrorism investigations. Founded by Peter Thiel, Alex Karp, and Stephen Cohen in 2003, their valuation rose to $20 million in 2015 and dropped to $6 million in 2018.
In 2020, Palantir went public and began trading on the New York Stock Exchange (NYSE) with the ticker symbol PLTR. As of June 23rd, 2023, PLTR is worth $14.05, and this is a 4.03 % decrease from the previous trading day. Analysts predict that by the end of 2023, PLTR stock will be worth $8, and by 2030, it could be worth its all-time high of $45.
In 2022, they had 3838 employees with revenue of $1.91 billion and total assets worth $3.46 billion. Despite falling in the last five years, Palantir stock still trades very well. The forecast shows that they have grown yearly by 55.2 % and 15.9 % in earnings and revenue, respectively.
Some other reason investors should look into PLTR stock is that they are currently enjoying broad-based growth with sustained profitability ahead. Also, from a competitive standpoint, they do not have significant competitors. Palantir has a major risk in financial and accounting in relation to corporate activity.
Adobe Inc. (NASDAQ: ADBE)
Adobe Inc. (NASDAQ: ADBE) is an American software company that specializes in the creation of various things, some of which include graphics, illustrations, multimedia, and video, amongst others. The company got founded in 1982 by John Warnock and Charles Geschke. Adobe Inc. initially started in Warnock’s garage. Steve Jobs tried buying the company for $5 million in 1982, but the founders refused and sold him shares of 19 % of the company.
Adobe became the first company in the history of Silicon Valley to become profitable in its first year as Steve Jobs paid five times what the company was worth at the time, plus a five-year license fee for postscript in advance.
Since 2013, Adobe Inc. has steadily grown in its revenue, total assets, and the number of employees they have. In 2013, they had a revenue of $4,055 million with 11,847 employees. As of December 2022, the revenue was $17.61 billion, with total assets worth $27.17 billion and 29,239 employees.
In 1986, Adobe Inc. began trading on the NASDAQ exchange as ADBE in the American stock exchange in New York City. As of June 23rd, 2023, ADBE stock is worth $477.58, a 0.021 % increase from the previous trading day. Analysts predict that by 2025, ADBE stock should be worth between $520, and $580 and by 2030, it should be worth between $970 and $1080. Forecast show that the twelve month stock price of Adobe Inc. will have a median target of 544.00, with a high estimate of 600.00 and a low estimate of 402.00
Investors should look into investing in ADBE stock as they have solid and consistent financial performance, and they have a lot of room to grow due to their share repurchases and operating efficiencies.
The major risk distribution in Adobe Inc. are:
● 29% tech and innovation
● 19% finance and corporate
● 19% ability to sell
● 19% macro and political
● 10% legal and regulatory
● 6% production
Adobe Inc. recently announced that they might incur substantial costs defending against third parties who alleged that the company infringed on their right.
Marathon Patent Group Inc. (NASDAQ: MARA)
Formerly known as Marathon Parent Group Inc., Marathon digital holdings is a digital assets company that engages in cryptocurrency mining with a focus on the blockchain ecosystem. Majorly known for its purchase of bitcoin and bitcoin mining equipment in 2021, Marathon Holdings got founded in 2010 in Las Vegas.
The company's first release revenue was in 2013, with $3 million, but as of 2022, its annual revenue had grown to $118 million. Marathon Parent Group Inc. went public and began trading on the NASDAQ exchange as MARA in the American stock exchange in New York City. As of June 23rd, 2023, MARA stock is worth $11.83, which is a 3.11 % decrease from the previous trading day.
Analysts predict that by the end of 2023, MARA stock will be worth $14.76, and by 2030, it will be worth about $3.75, which is a 73.7 % decrease from 2023.
It would interest you to know that with the forecasted decline in the price of MARA stocks, it is still beneficial to buy it for a short-term investment opportunity.
A major risk or challenge of trading in MARA stock is that it might not be very reasonable for long-term investments. Trading with MARA stock is better for short periods.
Salesforce.com Inc. (NYSE: CRM)
Salesforce (NYSE: CRM) is a cloud-based software company that provides services in Customer Relationship Management, and their software focuses on sales, customer service, e-commerce, and app development. The company’s headquarters is in San Francisco. Salesforce got founded in 1999 by Marc Benioff, Parker Harris, Dave Moellenhoff, and Frank Dominguez.
Salesforce, in 2009 became the first cloud computing company to reach $1 billion in annual revenue. Currently the 61st most prominent company in the world by market capitalization with a value of about $153 billion, they made their IPO in 2004.
Salesforce began trading on the New York Stock Exchange (NYSE) with the ticker symbol CRM. As of June 23rd, 2023, CRM stock is worth $210.28, a 1.41 % decrease from the previous trading day. Analysts predict that by 2024, CRM stock should be worth $240.58, and by 2030, it should be worth $541.53.
Investing in CRM is a very good strategy; the company’s impressive performance results from its relentless focus on strategic investments in its products. They also have very effective communication systems.
In recent times, Salesforce Inc.’s management and leadership has become a significant challenge for its investors. Two co-CEOs left the company in just three years. The company also only focuses on profitability, which might result in the company curbing its spending on investments and this can make evolution for the company a lot more complicated.
Zoom Video Communications Inc. (NASDAQ: ZM)
Zoom video communication Inc. (NASDAQ: ZM) is a communication technology that provides video telephony and online chat services through a cloud base. It is often used for video communications, messaging, and conference rooms for video meetings. The company initially had difficulties finding investors because people did not believe in video telephony.
In 2011, Zoom video communication got founded by Eric Yuan. The company launched its software in January 2013, and by May 2013, it already had one million users. The company became public via an IPO. They initially priced at $36 per share, but the share price increased by over 72 % on the first day of trading.
They first became profitable in 2019; that same year, they ranked second in Glassdoor's best places to work survey. Analysts predict that by the end of 2023, ZM stock will be worth $117.23, and by 2030, it will be worth $1132.32.
As of March 2023, they had 8,484 employees and a revenue of $4.39 billion, with total assets worth $8.13 billion.
Zoom video communication Inc. began trading on the NASDAQ exchange as ZM in the American stock exchange in New York City. As of June 23rd, 2023, ZM is worth $67.17, which is a 0.42 % increase from the previous trading day.
Zoom Inc.’s major risk distribution includes:
● 34 % Finance and Corporate
● 21 % Tech and Innovation
● 16 % Ability to Sell
● 14 % Legal and Regulatory
● 12 % Macro and Political
● 3 % Production
Investing in Zoom is such a great choice as they offer top-notch workability and accessibility. They have also expanded their ecosystem, and their valuation and financials are very solid. They can serve as an easy part for new investors to earn growth.
Digital Turbine Inc. (NASDAQ: APPS)
Digital Turbine Inc. (NASDAQ: APPS) is an independent mobile growth platform that levels up the landscape for advertisers, publishers and carriers. Jud Bowman founded it in 1998, and it went public in 2015.
As of 24th of May 2023, they had 777 employees with a revenue of $141.12 million with total assets worth $1.3 million. Analysts envisage that by the end of 2023, APPS stock will be worth $18.87, and by 2030, it will be worth $33.52.
Digital Turbine Inc. began trading on the NASDAQ exchange as APPS in the American stock exchange in New York City. As of June 23rd, 2023, APPS is worth $7.84, 4.97 % lower than the previous trading day.
Digital Turbine receives a strong valuation score of 95 from analysts, therefore it is of good value and is a good buy for investors. If traded well, investors can make much profit while investing in digital turbines.
Digital Turbine's biggest risk is that they have incurred many debts. As of December 2022, they had a debt of $422.3 million.
Unity Software Inc. (NYSE: U)
Unity Software Inc. is a company that develops video game software based in San Francisco. Their very first game ‘Gooball’ which got released in 2005, failed commercially, but the founders saw value in the game development tools, which made them shift their focus to creating an engine for other developers.
The company got founded in 2004 by John Riccitiello and Danny Lange; they were the runner-up for Best Use of Mac OS X Graphics at the 2006 Apple Design Awards.
As of 2022, they had 7,703 employees with a revenue of $1.39 billion with total assets worth $7.83 billion. Analysts predict that the 12-month price forecasts for Unity Software Inc. have a median target of 40.00, with a high estimate of 66.00 and a low estimate of 12.00.
Unity Software Inc. began trading on the New York Stock Exchange (NYSE) with the ticker symbol U. As of June 23rd, 2023, U stock is worth $37.48, a 0.98 % decrease from the previous trading day.
Investors should invest in Unity stock as it is currently forecasted as a strong buy amongst stocks today, it is reasonable to buy unity stock for short periods of time.
Unity software's primary risk is that it can be unprofitable in the long run as compared to its peers, it lost over $533 million in 2021.
How to Invest in Application Software Stocks for Maximum Returns
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Investing in application software stocks will significantly benefit you as a trader and will be an excellent addition to your portfolio. Some of the benefits of investing in application software include:
● It has the potential for long-term returns
● It serves as a means of regular income
● It outperforms inflation.
You may be wondering: how do investors invest in application software stocks for maximum returns? To invest in making maximum returns, investors are to:
● Keep their eyes on the news that concerns application software
● Practice well as it helps to build your experience
● Study each stock carefully.
Trade Application Software Stocks CFD At VSTAR
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Trading in Application Software stocks requires a lot of diligence and knowledge. One has to diligently study the market trends and the risks and benefits of each stock. Now: when trading, there are three options to select from:
● Holding the share
● Buying an option
● Trading a CFD
Each of these three options has its advantages and disadvantages. However, when trading CFDs, investors enjoy and experience unique benefits like low costs and high flexibility. With CFD, investors can trade with a small deposit, profit from any price direction, and avoid commissions, fees, and premiums. Investors do not need to own the actual shares with CFDs.
With VSTAR, you can trade CFDs on various markets, such as currencies, stocks, amongst others. You can also enjoy low fees with fast execution and secure trading with VSTAR. Additionally, you can navigate the app easily. On VSTAR, you can start with small deposits and practice with a demo account.
To trade any of these stocks CFDs with VSTAR:
● Visit www.vstar.com or download the VSTAR app on your device
● Register for an account by providing your details
● Verify your identity by uploading your proof of identity and address
● Deposit funds into your account by choosing your preferred payment method and amount.
● Trade by selecting your stock from the list of available instruments, entering your trade size, direction (buy or sell), stop loss, take profit, etc., and click on "Open Trade”.
Conclusion
Trading in application software stocks gives you the opportunity to trade in one of the most dynamic sectors in the global economy. In this article, we discussed the top seven best application software stocks to trade in, their benefits, risks, and their stock prediction alongside their financial analysis.
There are a lot of great investment opportunities in the application software industry, investors have to be aware of the risk each stock poses, and they are ready to go.
Remember that the application software market is made easier with VSTAR where you get to have a great trading experience. You should start investing in the application software stocks today and make good use of the opportunities in the industry.
