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13 top SaaS stocks to buy in 2024

Ready to invest in the software-as-a-service industry? Learn how to invest in SaaS stocks in just a few steps.

The best SaaS stocks depend on your portfolio and investment goals — while volatility can be ideal for day traders, long-term investors will want to look to stocks with steadier gains over time.

The top software-as-a-service stocks included on this page all trade on the S&P 500, have an analyst recommendation of "Buy" or better and are sorted by year-to-date performance.

  1. Microsoft Corporation (MSFT)
  2. Salesforce-com (CRM)
  3. Adobe Systems Incorporated (ADBE)
  4. Shopify (SHOP)
  5. Wix-Com (WIX)
  6. Slack Technologies (WORK)
  7. Zoom Video Communications (ZM)
  8. Datadog (DDOG)
  9. DocuSign (DOCU)
  10. Dropbox (DBX)
  11. Alphabet Inc Class A (GOOGL)
  12. Block (SQ)
  13. Cloudera (CLDR)

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How to invest in SaaS stocks

  1. Choose an online stock trading platform. Choose from our Top Picks above, use our comparison table below or jump straight to the best stock trading apps of 2024.
  2. Sign up for an account. Provide your personal information and sign up.
  3. Set up a funding method to pay for the transaction. Deposit funds into your account by linking your banking information.
  4. Choose the stocks you want to buy. Search for the stock by name or ticker symbol like MSFT or CRM.
  5. Place your order. Buy the stock. It's that simple.

Take a deeper dive into SaaS stocks

If you're interested in investing in the software-as-a-service industry, take a closer look at what companies in this industry do and how the stocks have historically performed. Keep in mind that positive past performance doesn't guarantee that a stock will continue to rise in the future.

1. Microsoft Corporation (MSFT)

Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services. This segment also provides LinkedIn; and dynamics business solutions, including Dynamics 365, a set of intelligent, cloud-based applications across ERP, CRM, power apps, and power automate; and on-premises ERP and CRM applications.

Microsoft Corporation stock opened the day at $418.25 after a previous close of $418.01. The latest price was $423.03 (25-minute delay). Microsoft Corporation is listed on the NASDAQ, has a trailing 12-month revenue of around USD254.2 billion and employs 228,000 staff.

  • Market capitalization: $3,163,020,853,248
  • P/E ratio: 34.729
  • PEG ratio: 2.2492

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2. Salesforce-com (CRM)

Salesforce, Inc. provides Customer Relationship Management (CRM) technology that brings companies and customers together worldwide. The company's service includes sales to store data, monitor leads and progress, forecast opportunities, gain insights through analytics and artificial intelligence, and deliver quotes, contracts, and invoices; and service that enables companies to deliver trusted and highly personalized customer support at scale.

Salesforce-com stock opened the day at $339.29 after a previous close of $341.73. The latest price was $341.15 (25-minute delay). Salesforce-com is listed on the NYSE, has a trailing 12-month revenue of around USD$36.5 billion and employs 72,682 staff.

  • Market capitalization: $297,105,686,528
  • P/E ratio: 53.4905
  • PEG ratio: 2.1173

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3. Adobe Systems Incorporated (ADBE)

Adobe Inc. , together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising.

Adobe Systems Incorporated stock opened the day at $504.39 after a previous close of $504.48. The latest price was $526.42 (25-minute delay). Adobe Systems Incorporated is listed on the NASDAQ, has a trailing 12-month revenue of around USD$20.9 billion and employs 29,945 staff.

  • Market capitalization: $222,204,116,992
  • P/E ratio: 42.7406
  • PEG ratio: 1.6324

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4. Shopify (SHOP)

Shopify Inc. , a commerce company, provides a commerce platform and services in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, Australia, China, and Latin America. The company's platform enables merchants to displays, manages, markets, and sells its products through various sales channels, including web and mobile storefronts, physical retail locations, pop-up shops, social media storefronts, native mobile apps, buy buttons, and marketplaces; and enables to manage products and inventory, process orders and payments, fulfill and ship orders, new buyers and build customer relationships, source products, leverage analytics and reporting, manage cash, payments and transactions, and access financing.

Shopify stock opened the day at $107.52 after a previous close of $89.99. The latest price was $108.92 (25-minute delay). Shopify is listed on the NYSE, has a trailing 12-month revenue of around USD$7.8 billion and employs 8,300 staff.

  • Market capitalization: $109,788,889,088
  • P/E ratio: 86.4142
  • PEG ratio: 1.1192

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5. Wix-Com (WIX)

Wix. com Ltd. , together with its subsidiaries, operates as a cloud-based web development platform for registered users and creators worldwide.

Wix-Com stock opened the day at $183.75 after a previous close of $183.64. The latest price was $188.94 (25-minute delay). Wix-Com is listed on the NASDAQ, has a trailing 12-month revenue of around USD$1.7 billion and employs 5,242 staff.

  • Market capitalization: $9,431,541,760
  • P/E ratio: 131.3283
  • PEG ratio: 0.3011

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6. Slack Technologies (WORK)

Slack Technologies, Inc. operates Slack, a business technology software platform in the United States and internationally. Its platform brings together people, applications, and data, as well as sells its offering under a software-as-a-service model.

Slack Technologies stock opened the day at $0.00 after a previous close of $0.00. The latest price was $0.00 (25-minute delay). Slack Technologies is listed on the NYSE, has a trailing 12-month revenue of around USD$974.3 million and employs 2,597 staff.

  • Market capitalization: $26,519,519,232

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7. Zoom Video Communications (ZM)

Zoom Video Communications, Inc. provides unified communications platform in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. The company offers Zoom Meetings that offers HD video, voice, chat, and content sharing through mobile devices, desktops, laptops, telephones, and conference room systems; Zoom Phone, an enterprise cloud phone system; and Zoom Chat enables users to share messages, images, audio files, and content in desktop, laptop, tablet, and mobile devices.

Zoom Video Communications stock opened the day at $84.73 after a previous close of $85.58. The latest price was $86.32 (25-minute delay). Zoom Video Communications is listed on the NASDAQ, has a trailing 12-month revenue of around USD$4.6 billion and employs 7,420 staff.

  • Market capitalization: $24,681,601,024
  • P/E ratio: 28.6393
  • PEG ratio: 3.2503

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8. Datadog (DDOG)

Datadog, Inc. operates an observability and security platform for cloud applications in North America and internationally. The company's products comprise infrastructure and application performance monitoring, log management, digital experience monitoring, continuous profiler, database monitoring, data streams and universal service monitoring, network monitoring, incident management, workflow automation, observability pipelines, cloud cost and cloud security management, application security management, cloud SIEM, sensitive data scanner, and CI visibility.

Datadog stock opened the day at $122.08 after a previous close of $122.36. The latest price was $123.41 (25-minute delay). Datadog is listed on the NASDAQ, has a trailing 12-month revenue of around USD$2.4 billion and employs 5,200 staff.

  • Market capitalization: $43,758,956,544
  • P/E ratio: 276.1489
  • PEG ratio: 2.0387

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9. DocuSign (DOCU)

DocuSign, Inc. provides electronic signature solution in the United States and internationally. The company provides e-signature solution that enables sending and signing of agreements on various devices; Contract Lifecycle Management (CLM), which automates workflows across the entire agreement process; Document Generation streamlines the process of generating new, custom agreements; and Gen for Salesforce, which allows sales representatives to automatically generate agreements with a few clicks from within Salesforce.

DocuSign stock opened the day at $80.56 after a previous close of $81.22. The latest price was $82.47 (25-minute delay). DocuSign is listed on the NASDAQ, has a trailing 12-month revenue of around USD$2.9 billion and employs 6,840 staff.

  • Market capitalization: $15,521,344,512
  • P/E ratio: 15.9979
  • PEG ratio: 0.4975

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10. Dropbox (DBX)

Dropbox, Inc. provides a content collaboration platform worldwide. The company's platform allows individuals, families, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features.

Dropbox stock opened the day at $28.00 after a previous close of $28.17. The latest price was $27.93 (25-minute delay). Dropbox is listed on the NASDAQ, has a trailing 12-month revenue of around USD$2.5 billion and employs 2,693 staff.

  • Market capitalization: $8,838,796,288
  • P/E ratio: 16.2093
  • PEG ratio: 2.2994

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11. Alphabet Inc Class A (GOOGL)

Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments.

Alphabet Inc Class A stock opened the day at $179.82 after a previous close of $180.35. The latest price was $181.62 (25-minute delay). Alphabet Inc Class A is listed on the NASDAQ, has a trailing 12-month revenue of around USD$339.9 billion and employs 181,269 staff.

  • Market capitalization: $2,170,737,524,736
  • P/E ratio: 22.514
  • PEG ratio: 1.1232

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12. Block (SQ)

Block, Inc. , together with its subsidiaries, builds ecosystems focused on commerce and financial products and services in the United States and internationally. It operates through two segments, Square and Cash App.

Block stock opened the day at $82.66 after a previous close of $83.40. The latest price was $87.25 (25-minute delay). Block is listed on the NYSE, has a trailing 12-month revenue of around USD$23.9 billion and employs 12,000 staff.

  • Market capitalization: $46,213,332,992
  • P/E ratio: 44.6467
  • PEG ratio: 0.4452

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13. Cloudera (CLDR)

Cloudera, Inc. offers a suite of data analytics and management products in the United States, Europe, and Asia. The company operates through two segments, Subscription and Services.

Cloudera stock opened the day at $0.00 after a previous close of $0.00. The latest price was $0.00 (25-minute delay). Cloudera is listed on the NYSE, has a trailing 12-month revenue of around USD$904.8 million and employs 2,728 staff.

  • Market capitalization: $4,736,509,440
  • PEG ratio: -0.84

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Bottom line

While it’s possible to turn a profit investing in SaaS stocks, keep in mind that — like any investment — SaaS stocks are not immune to risk. These stocks are subject to fluctuating conditions — both in the market and in the software-as-a-service industry, so carefully vet your picks before you invest. And if you’re new to investing, or if it’s been awhile since you’ve taken a critical look at your investing accounts, compare brokers to make sure you’re getting the best features in your trading account.

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