What Are Software as a Service Stocks?

Software as a Service stocks is one of the most popular sectors for growth investors. When we talk about Software as a Service, it means a software company that sells its products to customers; usually through a recurring subscription model. So what’s the big deal? SaaS companies are incredibly lucrative as stocks. Over time these recurring subscription revenues add up as the company adds more clients and more products to its portfolio. Remember, the company technically only has to create software once. However, they can sell it to clients for decades. Sure, there have to be upgrades and enhancements. But most of the programming groundwork is laid down with the first iteration of the program.

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