Cloud technology has become a catch-all answer to almost any software or business challenge, to the point of being cliché. That’s nice if you’re creating a pitch deck, but if you’re investing your money, you need to crack open that cliché and understand what’s happening.
As companies realize the limits of cloud computing, they’re refocusing on their own private data centers. A recent pullback gives investors an opportunity to buy one of the leaders in making public cloud-private data center computing work well.
Asian equities have rallied in recent months, but many markets still trade at favorable valuations. Patient investors should focus on high-quality names in the financial and information technology sectors.
The selloff in cybersecurity stocks creates attractive entry points for investors with a longer time horizon. However, the growing risk of a bear-market correction in the first half of 2016 suggests even better buying opportunities could emerge. Investors should remain cautious and plan to ease into any positions.
One of today’s best secular growth stories involves the application of cloud hosting and advanced data collection and analytics—existing technologies, not chimera from sci-fi movies—to disrupt incumbent systems and unlock additional value and potentiality from traditional businesses.
We take a slight profit in one of our underperforming software picks and roll the proceeds into a name that boasts a highly visible revenue stream, tends to hold its value during periods of volatility and offers exposure to several near- and intermediate-term upside drivers.
Our software picks from last summer have delivered solid gains, easily outperforming the S&P 500 and topping the Russell 2000 Computer Service & Software Index. Here’s our assessment of these companies’ quarterly results and their future growth prospects.
Earlier this summer, we highlighted a two-pronged strategy to profit from the software industry’s transition to a subscription-based model that improves revenue stability and better serves customers. Our approach has paid out thus far, with our picks outperforming their benchmark index; here are our updated takes on these names.
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