APP - The Top 3 Software Stocks to Buy in April 2024
2024-04-26 06:30:00 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
The software industry has experienced remarkable growth, primarily due to innovative technologies such as cloud computing and generative AI that have recently taken over the market.
Technology stocks have been one of the best-performing industries in the stock market. The Technology Select Sector SPDR Fund (NYSEARCA: XLK ) is a benchmark representation of the overall technology industry, and over this past year, it has risen by 38%, while the S&P 500 has only increased by 25% within the same time period.
Below are a few software stocks that have grown rapidly and offer investors upside potential.
Applovin (APP)
Applovin (NASDAQ: APP ) is a marketing software platform that offers its customers a number of apps, such as AppDiscovery, MAX, Adjust and SparkLabs, for advertisers, small businesses and other enterprises.
It has performed extremely well over this past year, with its share price increasing by more than fourfold. This is partly due to the innovative growth capabilities of various generative AI technologies, which have led to investors flocking to the technology industry.
On Feb. 14, Applovin released its earnings results for the fourth quarter and full year of 2023 , stating that total revenue increased by 35% and earnings per share were forty-nine cents. These reported results beat analyst expectations, which led to its share price rising by 25% following the report.
Applovin is a software company that has grown dramatically over the past year and shows no sign of stopping. Investors will be keeping a close eye on Applovin when its earnings for the first quarter are reported, which is expected on May 8.
Q2 Holdings (QTWO)
Q2 Holdings (NYSE: QTWO ) provides cloud technology for small and significant financial institutions, such as portfolio management, consumer banking, underwriting and lending solutions.
On Feb. 21, Q2 Holdings announced its earnings results for the fourth quarter of the full year of 2023 . In this report, it stated that total revenue increased by 11%, and its net loss shrank from $32 million to $18 million compared to the previous year.
Over this past year, its share price has more than doubled due to the company’s positive financial outlook, which followed its revenue growth and reduction of net loss.
It is a company focused on innovation in the financial space and with increased subscriber growth. Q2 Holdings is a perfect option for investors seeking exposure to the quickly expanding market of innovative technologies such as cloud computing and artificial intelligence.
Salesforce (CRM)
Salesforce (NYSE: CRM ) is a customer management company that provides users with a wide range of products and services, such as store sales data, forecast projections, contract and invoice management, and other artificial intelligence and cloud computing tools.
Over this past year, its share price has risen by 42% due to strong revenue growth and new products being on the market.
On Feb. 28, Salesforce released its earnings results for the fourth quarter of fiscal year 2024 , in which it stated that total revenue increased by approximately 11% to $9.3 billion, and its cash flow rose by 22% year-over-year. It reported a net loss of $98 million for the fourth quarter of fiscal year 2023, which increased to a net income of $1.4 billion in Q4 of FY 2024.
CRM follows other large tech companies such as Meta Platforms (NADSAQ: META ) and Nvidia (NASDAQ: NVDA ) with the announcement of its very first dividend distributed to investors. It has an annual dividend yield of 0.14%, with its most recent quarterly dividend being forty cents per share.
Salesforce recently released its Einstein Copilot , a workflow automation software that primarily uses generative AI technology and could be a large source of revenue and growth for Salesforce.
It’s a leading tech company that offers stable growth for investors, making it a perfect pick for those looking to gain exposure to the revolutionary generative AI movement taking place in the stock market.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Noah has about a year of freelance writing experience. He’s worked with Investopedia dealing withtopics such as the stock market and financial news.
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