Why This SaaS Company Will Thrive in Industry Consolidation
For years now, it has seemed like any stock associated with a software-as-a-service company (SaaS) company could do no wrong. And why not? Once this powerful business model reaches a certain tipping point in scale, cash flows grow by leaps and bounds. Not only that, but the business is largely protected via high switching costs.
But there will be a day -- probably not too far down the road -- when a level of reality will set in. Not every SaaS company will succeed, and when looking toward the future, you want to be invested in the ones that provide tools that companies cannot live without.
In this segment from Motley Fool Live, recorded on Feb. 12, Motley Fool contributor Brian Stoffel discusses the main reason he owns Datadog (NASDAQ: DDOG) and believes it will be one of the SaaS companies that remains relevant for years to come.
Source Fool.com
