1 Software Stock with Exciting Potential and 2 Facing Challenges

Software is eating the world, and virtually no business is left untouched by it. In the past, the undeniable tailwinds fueling SaaS companies led to lofty valuation multiples that made it easier to raise capital. But this was a double-edged sword as the high prices exposed them to big drawdowns, and unfortunately, the industry has tumbled by 21.5% over the last six months. This drawdown is a stark contrast from the S&P 500’s 4.8% gain.