- Asana (ASAN): expects to make an estimated $309 million – $314 million for 2022.
- Alphabet (GOOGL, GOOG): Has a stellar earnings record, upcoming stock split and increasing demand for its product portfolio.
- Electronic Arts (EA): Recently announced it is leaning into mobile games to increase its revenue.
- Microsoft (MSFT): Just reported 20% revenue growth and is expected to close out the year the same way.
- Uber Technologies (UBER): Is investing heavily in self-driving technology and building out its ad business to keep growing revenue.
- Unity Software (U): A popular game development engine that is also investing in products and services for the metaverse.
- Meta Platforms (FB): Metaverse investments, VR/AR initiatives and a market ripe for these technologies will help Meta make a comeback this year.
Software stocks are always a safe bet, even in a volatile market. The industry is constantly evolving and changing, making it difficult to predict its future. On the other hand, software stocks are always on the rise because they have proven to be profitable investment vehicles in any market conditions.
This list of companies includes proven performers and some newer companies. An emphasis is given to those companies that are likely to continue growing in the foreseeable future. With that in mind, here are seven software stocks to consider buying now.
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Asana is a growth stock; therefore, much like the other market participants, things started to go awry at the start of the year. However, the company continues to grow by leaps and bounds. Asana’s revenue increased 64% year-over-year (YOY) in the fourth quarter.
The company has predicted it will remain unprofitable for several years, though. This is not a surprise, as many startups are unprofitable until they gain traction. Analysts do not expect this trend to change for Asana any time soon.
It takes time for any new business to grow, and that’s why you need to stay patient with ASAN stock.
Alphabet (GOOG, GOOGL)
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Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) is one of the world’s largest companies and comprises many subsidiaries like Google and YouTube. This stock is a bellwether for the industry. However, like other tech stocks this year, Alphabet is under pressure.
Regardless, the performance of the company continues to impress. Strong search performance and YouTube are helping the company scale to new heights. The tech giant reported a net income of $20.6 billion on revenue that grew 32% from $52.8 billion to $75.3 billion in the final quarter of 2021.
At the same time, Google fans should mark their calendars for a 20-for-1 stock split, which takes effect July 15. According to the company, the move is being undertaken to give shares access to a wider retail base.
Electronic Arts (EA)
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Electronic Arts (NASDAQ:EA) is a game development company with an impressive portfolio of more than 100 games. The company has made some incredibly popular titles like Madden NFL, Battlefield and The Sims.
The gaming industry is huge, and it only got bigger during the pandemic. The global games market is expected to grow, with North America for the most part staying on top.
And as the related technology continues to change, computer games are becoming more available and affordable. Estimates are for the global video gaming market to reach $268.8 billion in 2025, up from $178 billion in 2021.
Electronic Arts is one of the most consistent performers in the gaming space. EA’s Feb. 1 earnings release impressed Wall Street, exceeding analyst estimates. It also revealed the company’s aggressive plans in the mobile area. Apex Legends is expected to launch a mobile version in the coming quarters, so players won’t have to miss out on anything.
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Microsoft (NASDAQ:MSFT) is the world’s largest software company and one of the top 10 companies globally. The company has a long history of producing computer operating systems, software packages like its Office Suite and even gaming products like Xbox.
Microsoft is one of the most valuable companies in the world. The company offers its services in various fields such as software, computing, gaming and hardware. However, the issue with Microsoft is that it’s a mature enterprise. Therefore, you cannot expect triple-digit growth from the organization moving forward.
Nevertheless, the tech giant delivered revenue growth of 20% in its latest quarterly results. Microsoft’s cloud platform came out on top of its primary competitor, Amazon’s (NASDAQ:AMZN) Amazon Web Services. Azure revenue grew 46% and is expected to continue that trend in the next quarter.
Uber Technologies (UBER)
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Uber Technologies (NYSE:UBER) develops, markets and operates its Uber ridesharing service and UberEats food delivery service. It offers these through its smartphone app, which you can use to find cars, request pickups and track your rides or payments.
The company has been making waves in the industry since its launch in 2009. Uber has grown exponentially to a multi-billion dollar value with more than 93 million active riders and more than 3.9 million drivers worldwide.
Ride-hailing giant Uber suffered during the pandemic when people avoided traveling with people outside their household, despite rigorous testing guidelines from the company. It resulted in a steep selloff for UBER stock, and shares now sit below their 2019 initial public offering price of $45 per share.
Undeterred by the market volatility, the company is investing heavily in self-driving technology and building out its ad business. By integrating crypto payments on its platform, management hopes to take another step forward.
Unity Software (U)
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Unity Software (NYSE:U) is an engine for developers to create games and interactive experiences. The platform has been used for a variety of mobile and PC titles, ranging from puzzle apps to roleplaying and adventure games.
Unity is the platform of choice for top games in the mobile and PC marketplaces. In addition, its advertising engine knows how long people play and which modes they’re playing in. Therefore, it can better serve mobile ads to users.
It uses these data points to help inform decisions about when to show mobile ads. Unity also offers powerful features such as 2D and 3D engines as well as scripting language.
In addition, Unity is investing in creating industry-leading products and services for the metaverse. This will help U stock earn brownie points with forward-thinking investors.
Meta Platforms (FB)
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Meta Platforms (NASDAQ:FB) is one of the biggest social media companies in the world. Its platforms, including Facebook and Instagram, are where people share their thoughts and interests with friends, family members and colleagues.
Last year, the company changed its name from Facebook to Meta, signaling a shift in how it delivers its products and its offerings. According to CEO Mark Zuckerberg, its focus is now firmly on the metaverse, which he describes as the “successor to the mobile internet.”
Facebook’s stock was in a tailspin at the beginning of this year. Apple’s (NASDAQ:AAPL) iOS has instated new privacy features, causing a hit on Meta’s revenue. ByteDance’s TikTok is also a substantial source of competition.
Despite days or weeks of speculation on whether it would continue to drop, FB stock has still provided a compelling reason to invest. The latest earnings report was a rare misstep for the company. Metaverse investments, virtual reality (VR) and augmented reality (AR) plus other initiatives will help FB stock come back in the second half of the year. It is taking new approaches to invest in media that paves the way for growth.
On the publication date, Faizan Farooque did not have (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.
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