4 Software Stocks that Surged More Than 75% in October
The software industry continues to benefit from rising demand for its products and solutions amid the ongoing digital transformation. Therefore, we think it could be wise to add software stocks...
The software industry continues to benefit from rising demand for its products and solutions amid the ongoing digital transformation. Therefore, we think it could be wise to add software stocks Bakkt (BKKT), Phunware (PHUN), Waitr (WTRH), and Glimpse Group (VRAR) to one’s watchlist. Each name gained significantly in price last month. Read on.
An increasing need for software products and solutions amid ongoing digital transformation has been helping the industry perform well. Furthermore, a growing interest in fintech, cryptocurrencies, data analytics, AR/VR, and artificial intelligence should keep driving the sector’s growth. Indeed, the global software market is expected to grow at a 7.2% CAGR to $823.71 billion by 2026.
Investors’ interest in the software space is evidenced by the SPDR S&P Software & Services ETF’s (XSW) 18.5% returns year-to-date and 49.7% gains over the past year. While the weaker-than-expected third-quarter earnings of some tech giants and stock market volatility could keep the software industry under pressure in the near term, its long-term prospects look bright.
Software stocks Bakkt Holdings, Inc. (BKKT), Phunware, Inc. (PHUN), Waitr Holdings Inc. (WTRH), and The Glimpse Group, Inc. (VRAR) surged more than 75% in price last month. Therefore, we think it could be wise to add these stocks to one’s watchlist.
Bakkt Holdings, Inc. (BKKT)
Atlanta, Ga.-based BKKT is a software company that develops a digital asset marketplace that enables consumers to buy, sell, store, and spend digital assets worldwide. It offers a cryptocurrency trading platform, cryptocurrencies and their custody, gift cards, loyalty points, and miles. Its platform allows merchants and brands to create compelling experiences to attract new customers and engage existing customers.
On October 25, 2021, Fiserv, Inc. (FISV), a leading global provider of payments and financial services technology solutions, announced a strategic relationship with BKKT to integrate FISV’s Carat omnichannel ecosystem with BKKT’s digital asset platform. This will enable practical uses of crypto and emerging asset classes, allowing businesses to pursue new options for B2B and B2C payouts, loyalty programs, and transactions. Both companies anticipate great demand from merchants and other customers in the coming months.
Also, Mastercard Incorporated (MA), a provider of financial transaction processing services, announced a multifaceted partnership with BKKT to offer a broad set of cryptocurrency solutions and services using BKKT’s digital wallet. This enables merchants, banks, and fintech to gain expanded access to the digital asset ecosystem. The offering should allow both companies to expand their market reach amid increasing demand for crypto among millennials.
BKKT had $708,642 in cash as of September 30, 2021. The stock gained 385.4% in price in October.
Phunware, Inc. (PHUN)
PHUN is the pioneer of Multiscreen-as-a-Service (MaaS), a fully integrated enterprise cloud platform for mobile that provides companies the products, solutions, data, and services necessary to engage, manage, and monetize their mobile application portfolios and audiences worldwide. The Austin, Tex.-based company provides cloud-based vertical solutions for healthcare, retail, sports, aviation, real estate, hospitality, education, and other applications.
On October 27, 2021, PHUN announced the availability of its mobile Digital Front Door solution for healthcare on the Epic App Orchard marketplace after its successful completion of Epic's comprehensive integration process. This solution enables hospital systems and clinicians to engage their patients and visitors on mobile, thus, driving operational efficiency and ensuring patient satisfaction.
On October 19, 2021, PHUN closed the acquisition of privately-held Lyte Technology, Inc. The company is a fast-growing provider of high-performance computer systems. The acquisition should enable PHUN to enter the rapidly growing high-performance personal computer market, support Lyte’s customers representing gamers, developers, content creators, and crypto enthusiasts, and generate net revenues exceeding $5 million in its 2021 fourth quarter.
PHUN has had $2.71 million in cash as of June 30, 2021. The stock gained 361.8% in price in October.
Waitr Holdings Inc. (WTRH)
WTRH operates an online ordering technology platform that provides delivery, carryout, and dine-in options, connecting restaurants, drivers, and diners in U.S. cities. Its platforms allow consumers to browse local restaurants and menus, track order and delivery status, and securely store previous orders for ease of use and convenience. It also enables restaurants to optimize orders through real-time analytics and manage restaurant menus. WRTH is based in Lake Charles, La.
On October 28, 2021, WTRH announced a partnership with Denny’s Corporation (DENN), an American table service diner-style restaurant chain, to deliver DENN’s new virtual brand, The Burger Den, from nearly 400 Denny’s locations from Florida to Hawaii. WTRH is looking forward to a long-term partnership with DENN and improving customer experience.
On October 18, 2021, WTRH broadened its partnership with Olo Inc. (OLO), a B2B SaaS company that develops restaurants' digital ordering and delivery programs by joining OLO’s Dispatch network. OLO’s support allows WTRH and its Bite Squad and Delivery Dudes companies to receive delivery requests from restaurant orders generated through their own websites and apps, manage each restaurant’s delivery options, and select service providers. This should help WTRH gain increased accessibility to new restaurant brands.
The company had $60.55 million in cash as of June 30, 2021. Analysts expect the stock’s EPS to grow at a 20% rate per annum over the next five years. The stock returned 119.2% in October.
The Glimpse Group, Inc. (VRAR)
New York City-based VRAR is a virtual reality (VR) and augmented reality (AR) platform provider that offers enterprise-focused software, services, and solutions. Its VR/AR platform collaborates with the environment and diversified business models and helps in the challenges faced by entrepreneurs in the VR/AR industry.
VRAR acquired XR Terra, a provider of VR & AR software development and design training courses, on September 30, 2021. XR Terra's focus on XR teaching and skills development represents a significant strategic market opportunity to empower the next generation of XR talent through innovative programs and partnerships. Thus, the acquisition expands VRAR’s offering in the EdTech, corporate learning, and workforce development markets.
On August 31, 2021, VRAR extended its existing portfolio of software products by launching VR and AR software and services targeting the Crypto and Non-Fungible Token (NFT) industry segments. By offering a high-end multi-user VR art gallery space, an AR-based NFT display system, and services to create super-high-resolution NFT assets, VRAR is looking forward to benefiting from the budding of NFT and Crypto industries.
VRAR’s revenue for the fiscal year ended June 30, 2021, came in at $3.42 million, up 75.9% from the prior-year period. The company’s gross profit increased 142.6% year-over-year to $1.96 million. As of June 30, 2021, VRAR had $1.77 million in cash and cash equivalents. In October, the stock gained 75.6% in price.
BKKT shares rose $0.34 (+0.97%) in premarket trading Thursday. Year-to-date, BKKT has gained 252.18%, versus a 25.64% rise in the benchmark S&P 500 index during the same period.
About the Author: Sweta Vijayan
Sweta is an investment analyst and journalist with a special interest in finding market inefficiencies. She’s passionate about educating investors, so that they may find success in the stock market.
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