The software-as-a-service (SaaS) business model worked wonders in 2020. Demand for all things digital spiked during the pandemic and businesses flocked to the low up-front costs of subscription-based services. The model worked well for investors too, as the recurring and predictable revenue from SaaS companies proved resilient during the economic downturn. Many SaaS stocks were up double-digit -- or even triple-digit -- percentages.
The future remains bright for software delivered in this fashion, and Wix.com (NASDAQ: WIX) , Medallia (NYSE: MDLA) , and Bandwidth (NASDAQ: BAND) look like three promising picks for 2021.
Shelter-in-place orders and social distancing sent e-commerce into the stratosphere, and I see no reason for it to go backward in 2021. E-commerce and related services like digital payments and digital marketing are still exceptions rather than the rule in most parts of the world , however, and I think Wix.com and its subscription-based, cloud-based website development business remain a top way to play the global growth of the trend.
For further details see:
3 Top Software-as-a-Service Stocks to Buy for 2021