Should you buy software-as-a-service (SaaS) stocks today?

As investors look for the most active stocks in the stock market today, the software-as-a-service (SaaS) industry continues to grow. For the most part, this is understandable. Even as the broader tech industry faces headwinds amidst fears of rising Treasury yields, tech remains as relevant as ever.

Should you buy SaaS stocks?

With SaaS stocks being popular among investors, and with that popularity only accelerated by the COVID-19 pandemic, valuations of SaaS stocks are high. But buying high can lead to lackluster returns for investors, even if the company performs well. If you want to invest in SaaS companies that are reasonably valued, consider these three options: 1.

What is a SaaS & why should you invest in it?

SaaS model revolutionizes software: Continual updates, flexible pricing, recurring revenue drive tech growth. Microsoft, Adobe, Salesforce: SaaS giants transitioning to subscriptions, maintaining dominance. Evaluating SaaS stocks: Look beyond P/E ratio, consider customer acquisition cost and price-to-sales ratio. 1. Microsoft 2. Adobe 3. Salesforce