Which SaaS Stock Will Grow The Most By 2025?

Every week, Benzinga conducts a sentiment survey to find out what traders are most excited about, interested in or thinking about as they manage and build their personal portfolios via stocks, options and forex trading.

The software-as-a-service (SaaS) market is one of the few sectors that has managed to flourish during the pandemic. 

(It can be said) the rise in cloud-based software adoption by businesses amidst the digital transition mid-pandemic has been a catalyst for SaaS stocks in 2020.

This week we asked over 600 Benzinga investors and traders which SaaS stock they believe will grow the most by 2025.

Best SaaS Stocks

Over the next five years, which stock will have the largest percentage gain?

• Adobe ADBE
• Asana ASAN
• Atlassian TEAM
• Crowdstrike CRWD
• Datadog DDOG
• DocuSign DOCU
• Microsoft MSFT
• Salesforce CRM
• Shopify SHOP
• Trade Desk TTD
• Twilio TWLO
• Zoom Video ZM

During this week’s study, 17.8% of traders and investors responded Zoom would grow the most by 2025. On Aug. 31, Zoom reported a 355% second-quarter revenue increase and a 458% year-over-year increase in client accounts. 

Zoom shares trade around $536 at publication time. 

About 17.4% of traders and investors believe Microsoft’s price per share will grow the most over the next five years, relative to the group of SaaS stocks we surveyed. On Sept. 22, we reported Microsoft launched Azure Communications Services, composed of cloud-based voice and video calling, chat, and telephony features.

Microsoft trades at $219 a share.

Fellow SaaS stocks Adobe and Atlassian proved to be less popular additions in the portfolios of traders and investors, receiving 3.1% and 2.3% of votes, respectively.

2020 has been a year of growth for Adobe. The company reported revenue of $3.23 billion in the third quarter, a 14% increase in revenue year-over-year. Adobe’s Document cloud data segment led the way in year-over-year revenue growth for Adobe, with revenue a 22% increase to $375 million.

Adobe stock is trading at $501 a share.

Meanwhile, Atlassian is poised to benefit from the ongoing shift to application development, its low-touch model and its efforts to move toward cloud subscriptions, according to Piper Sandler.

Here is the full list of results from the survey:

• Zoom: 17.8%
• Microsoft: 17.4%
• Shopify: 10.9% 
• DocuSign: 10.7%
• Salesforce: 8.2%
• Twilio: 8.1%
• Trade Desk: 6.5%
• Crowdstrike: 5.9%
• Datadog: 5.6%
• Asana: 3.4%
• Adobe: 3.1%
• Atlassian: 2.3%

This survey was conducted by Benzinga in September 2020 and included the responses of a diverse population of adults 18 or older.

Opting into the survey was completely voluntary, with no incentives offered to potential respondents. The study reflects results from over 600 adults.

Photo by Markus Spiske from Pexels