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Feb. 24, 2021, 4:10 p.m. EST

Best Software Stocks To Buy Right Now? 3 Reporting Earnings Next Week

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Feb 24, 2021 (StockMarket.com via COMTEX) -- Are These The Best Software Stocks For Your February Watchlist?

It comes as no surprise that the biggest movement in information technology (IT) right now is digital acceleration. At the heart of this massive phenomenon, are software stocks . Indeed, we are now living in an age where interconnected digital technologies use data to provide companies with actionable insights. As a result, some of the top software stocks have exploded onto the scene in recent months, rewarding investors heavily.

A prime example of this would be Software-as-a-Service (SaaS) titan Palantir ( NYSE: PLTR ). Notably, PLTR stock has skyrocketed by over 250% since its initial public offering in September. The company has a client list that not many can boast with U.S. and U.K. government customers. If anything, this goes to show the massive market for software services in the current age. In the same way, the cloud computing arm of the industry has also grown at breakneck speeds.

Take Teradata ( NYSE: TDC ) for instance, the company's cloud-analytical services have been in demand as of late. To the extent where its cloud offerings saw a 165% year-over-year leap. On top of that, TDC stock has doubled in price year-to-date. After reading all this I would not be surprised if you are keen to find the best software stocks to watch . Well, here are four that are on the radar now.

Best Software Stocks To Watch

Shopify Inc.

First up is e-commerce goliath Shopify. The company's SaaS and Platform-as-a-Service (PaaS) business has and continues to benefit from pandemic tailwinds. Accordingly, Shopify is now the go-to option for businesses across the globe looking to set up digital storefronts. For this reason, SHOP stock has almost tripled in value over the past year. In fact, Shopify reported that its merchants worldwide raked in a collective $5.1 billion over the Black Friday/Cyber Monday weekend. Truly, this speaks to the sheer scale at which it operates. With the company slated to release its fourth-quarter fiscal before the market opens on February 17, investors would be watching it closely.

Regardless, Shopify continues to make waves as it teams up with Facebook ( NASDAQ: FB ). Earlier this week, the company announced that it would be expanding its payment option, Shop Pay, into Facebook's marketplaces. To elaborate, this move will cover its merchants that are selling items across the Facebook and Instagram platforms. This represents a major step as it is the first time Shop Pay is being made available outside Shopify's e-commerce ecosystem.

No doubt, it is a significant play by the company because of the hordes of consumers on Facebook's digital marketplaces. Bringing the convenience of Shop Pay to more consumers will likely bode well for the company in the long run. Given all of this, will you be watching SHOP stock ahead of next week?

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Twilio Inc.

Another top software company in focus now would be Twilio. The company's PaaS business works to provide comprehensive cloud communication services to businesses of all sizes. More importantly, TWLO stock jumped by 6.6% on Wednesday. It hit a new all-time high but dipped slightly falling 0.3% by the closing bell. To point out, this bump does coincide with a recent upgrade from Wall Street earlier on the same day.

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