2 Top Software Stocks to Buy for the Long Haul
Software stocks can make great investments primarily because they tend to have high margins and many make great use of a recurring revenue model. These factors help create a highly profitable business (once it reaches maturity). Until then, many of these young software companies have no profits to show because of their growth-at-all-costs mindset.
Today, we are going to discuss two profitable software companies. Mature business Adobe (NASDAQ: ADBE) and up-and-comer The Trade Desk (NASDAQ: TTD) have achieved and maintained profitable operations. Their stocks both also happen to be on sale right now, suggesting that investors should consider taking a closer look.
Adobe's suite of software targeted at creating much of what people see on the internet and in print is widely used and is often the default software taught to students in publishing and webpage design. As such, it often faces competition from upstarts trying to capture a piece of its wide-ranging operations. Adobe's answer to this has been to acquire the strongest competitors. The latest example is Figma, which was outperforming its Adobe XD software. Adobe bought Figma for $20 billion in September and that sent the stock price down dramatically over concerns about the acquisition's price tag.
Source Fool.com
