Apps & Software

Corporate Software Demand Stays Red Hot: Stifel's 4 Focus Stock Picks

The analysts noted this about Unity Software’s prospects:

Unity is focused on expanding its Create and Operate solutions to other industry verticals, and already has the top 10 automobile companies as customers. Mr. Riccitiello reiterated his statement made during the IPO process, that non-gaming verticals should exceed the gaming industry as a percentage of revenue within 4 years. On the advertising side, the IDFA changes have remained front and center for the likes of Unity, Facebook, and Google. Google recently announced similar changes on its Android platform, but Unity remains confident it can gain market share using its unique approach to data analytics through games on the platform (71% of mobile games in 2020) and 3 billion monthly active users.

The $125 Stifel price target is above the $121.13 consensus target. Monday’s final Unity Software stock trade was reported at $122.30.

Twilio

This may be the top stock to own in this fast-growing segment. Twilio Inc. (NYSE: TWLO) provides cloud communications platform that enables developers to build, scale and operate communications within software applications through the cloud as a pay-as-you-go service in the United States and internationally.

The company offers programmable communications cloud software that enables developers to embed voice, messaging, video and authentication capabilities into their applications through application programming interfaces. The company also provides use case products, such as a two-factor authentication solution.

The past year and a half has proved to be very solid for the company, and the analysts said this:

The pickup in demand the company has seen for its core solutions in response to the shift to digital and the opportunity for Twilio to expand into more complex customer engagement use cases with solutions like Flex and Segment. Segment in particular seems poised to play a significant role in helping end-users deliver more differentiated, personalized experiences, while Flex sits at the center of a sizable cloud contact center migration opportunity that is expected to play out over a number of years. From a competitive standpoint, Twilio’s deep relationships with carriers around the globe and the truly omni-channel nature of its offerings (voice, messaging, email, video, etc.) have

Stifel has set a massive $500 price target. The much lower $463.13 consensus is still well above the most recent close at $343.07 a share.

These four sizzling software stocks are ideal for aggressive growth accounts with a higher risk tolerance. They also offer the best entry points this year and could be big alpha producers for the latter half of 2021.

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