From Nasdaq:

The Internet Software and Services industry is booming thanks to robust IT spending on hybrid operating environments. The global Internet of Things market is expected to reach $1.215 billion by 2030, with public cloud application services/software as a service (SaaS) end-user spending projected to hit $232.3 billion. Bloomberg forecasts the global Metaverse revenue opportunity to approach $800 billion in 2024.

The Zacks Defined Internet-Software Industry is currently placed in the top 14% of all industries with a one-year return of 70.4%. As businesses invest heavily in web-based infrastructure, applications, and security software, the industry’s growth prospects are alluring, primarily due to the rapid adoption of SaaS.

The demand for web-based cybersecurity software is on the rise amidst increasing cloud platform security concerns, spurrof rampant cyber-attacks and hacking incidents. Additionally, the migration of enterprise workloads to cloud environments is driving demand for web-based performance management monitoring tools.

Investing in Internet software stocks with a favorable Zacks Rank is recommended at this stage. Top picks for 2024 include Meta Platforms Inc., CrowdStrike Holdings Inc., Pinterest Inc., monday.com Ltd., and Twilio Inc., all boasting strong potential and positive earnings estimate revisions in the last 30 days.

Meta Platforms Inc. is benefiting from steady user growth across all regions, particularly in the Asia Pacific, with an expected revenue and earnings growth rate of 13.5% and 22.9%, respectively, for the current year. CrowdStrike Holdings Inc. is enjoying rising demand for cyber-security solutions and has an expected revenue and earnings growth rate of 28.2% and 23.6%. Pinterest Inc. is making progress in deepening user engagement, while monday.com Ltd. develops software applications in various regions with an expected revenue and earnings growth rate of 28.1% and 15.8%. Twilio Inc.is benefiting from accelerated digital transformation and its global presence with an expected revenue and earnings growth rate of 6.3% and 9.9%. With the global semiconductor manufacturing projected to explode, internet software and service companies have a promising future.



Read more: Top 5 Internet-Centric Stocks for a Strong Portfolio in 2024