Software stocks’ quarterly performance is expected to have significantly benefited from an uptick in the demand for software-based services and products as a result of the coronavirus-led growing work-from-home and learn-from-home trends.
Increased spending by enterprises on software procurement, the growing proliferation of Software-as-a-Service or SaaS-based services, the rapid migration to cloud platforms, solid adoption of video-conferencing software and rising user penetration of online payment solutions are likely to have remained major tailwinds for software companies in the fourth-quarter 2020.
Solid performance delivered by Microsoft MSFT indicates resiliency in the software industry amid the ongoing pandemic. Its recently reported quarterly results were driven by strong momentum in Azure and impressive Teams user growth, triggered by ongoing digital transformation, and remote working and learning trend.
Further, PayPal’s PYPL strong fourth-quarter 2020 results, which were driven by solid momentum across Venmo and strong customer engagement that led to a spike in