6 Software Companies That Are Beating Chip Stocks This Year
The semiconductor sector is having an incredible year—thank you,
—but certain software stocks are also having a moment.
That said, six software stocks are outperforming that grouping of chip stocks:
AppLovin
,
and
according to Dow Jones Market Data.
Here’s a quick overview of what’s been driving recent gains:
stock has surged 130% this year. On May 9, the stock gained 14% after the app-monetization company reported first-quarter revenue and adjusted earnings before interest, tax, depreciation, and amortization that beat Wall Street’s forecasts.
Advertisement – Scroll to Continue
Marketing technology software company
has gained 99% this year. On May 7, the stock soared 18% after Zeta filed a narrower-than-expected loss and raised guidance.
“The actionable intelligence delivered by the Zeta Marketing Platform is fueling the acceleration in our business,” said CEO David Steinberg in the earnings release at the time.
—the largest corporate holder of Bitcoin—has been on quite a rally, with shares soaring 95% this year. BTIG analysts offered three factors that could explain why. Firstly, the price of Bitcoin has risen 50%, which is a plus for MicroStrategy as they acquire and hold Bitcoin, the analysts said in April. Second, accretive capital raises have boosted the number of Bitcoin per share for equity holders, and third, the implied premium of the company’s Bitcoin holdings has increased from the previous year.
Shares of
a spatial property data company, have climbed 61% this year. On April 22, shares soared 176% after
Advertisement – Scroll to Continue
announced it was acquiring Matterport for about $1.6 billion.
“The world has changed and today Matterport is the new open house or property tour,” CoStar’s CEO Andy Florance said in a statement at the time. “People now select their next home, apartment, office, store, hotel, or warehouse on their mobile device often without ever visiting the property.”
has jumped 57%. The data-backup and recovery-software firm, popped 3.1% on April 30 after the company filed strong results for its fiscal fourth quarter and offered guidance that topped previous Wall Street estimates.
“We had an outstanding quarter and a breakout year, highlighted by 10% total revenue growth and 15% total [annual recurring revenue] growth in the fourth quarter,” Commvault CEO Sanjay Mirchandani said in a statement at the time.
Advertisement – Scroll to Continue
is up 56% this year. The data-analytics software stock is having quite the run, reaping the rewards of its artificial-intelligence tools. However, the stock has become overvalued in the meantime, according to Monness, Crespi, Hardt & Co. analyst Brian White. He downgraded Palantir to Sell from Neutral last month and issued a $20 price target.
“After surging 167% in 2023, Palantir’s stock was already rich upon entering 2024 and, with a 49% rally YTD [ year to date], we believe valuation has now reached a gluttonous extreme,” White wrote at the time.
Write to Emily Dattilo at emily.dattilo@dowjones.com
…
Read More:6 Software Companies That Are Beating Chip Stocks This Year