The software industry continues to benefit from rising demand for its products and solutions amid the ongoing digital transformation. Therefore, we think it could be wise to add software stocks Bakkt (BKKT), Phunware (PHUN), Waitr (WTRH), and Glimpse Group (VRAR) to one’s watchlist. Each name gained significantly in price last month. Read on.An increasing need for software products and solutions amid ongoing digital transformation has been helping the industry perform well. Furthermore, a growing interest in fintech, cryptocurrencies, data analytics, AR/VR, and artificial intelligence should keep driving the sector’s growth. Indeed, the global software market is expected to grow at a 7.2% CAGR to $823.71 billion by 2026.
Investors’ interest in the software space is evidenced by the SPDR S&P Software & Services ETF’s (XSW) 18.5% returns year-to-date and 49.7% gains over the past year. While the weaker-than-expected third-quarter earnings of some tech giants and stock market volatility could keep the software industry under pressure in the near term, its long-term prospects look bright.
Software stocks Bakkt Holdings, Inc. (BKKT), Phunware, Inc. (PHUN), Waitr Holdings Inc. (NASDAQ:WTRH), and The Glimpse Group, Inc. (VRAR) surged more than 75% in price last month. Therefore, we think it could be wise to add these stocks to one’s watchlist.