6 Top Internet Software Bets Amid The Coronavirus Crisis
Zacks Investment Research | Mar 15, 2020 09:50PM ET
Internet has been instrumental in fundamentally changing the way one works, and this has significantly transformed workspace. The ubiquitous nature of Internet essentially renders physical presence null and void to a large extent, and thus has turned out to be a blessing amid the coronavirus pandemic.
Precautionary measures are being undertaken globally to deal with the pandemic. Companies are urging employees to work from home. Schools, colleges, other education institutions, have been shut down. Theaters, malls, public recreation places have been closed to minimize the risk of spread.
This is expected to benefit Internet software companies providing enterprise workspace solutions, enterprise communication platforms, online education portals, to mention a few.
Internet Software Stocks Poised to Benefit
Solid adoption of cloud-based services, increasing proliferation of IoT, AR/VR devices and accelerated deployment of 5G are expected to aid Internet software users to deal with the coronavirus-induced situation.
Further, Internet software providers are well poised to gain from growing demand for their services as enterprises continue to shift from on-premise to cloud environments — both public and hybrid.
Enterprises have been increasingly adopting digital transformation techniques to automate and accelerate business processes, with an aim to boost productivity. Advancements in AI, machine learning (ML), deep learning (DL), natural language processing (NLP), and neural networks, has transformed enterprise processes with robust team collaboration tools, virtual assistants and chat bots.
This is also the primary reason behind SaaS-based (or Software as a Service) application and infrastructure monitoring gaining importance. Demand for cloud infrastructure monitoring, web-based application performance management, human capital management (HCM), and cyber security software are increasing rapidly.
Moreover, secular growth in the e-commerce space, increasing popularity of social-media platforms and digital ad-spending are major growth drivers. Increasing popularity of programmatic ad-buying is a key catalyst, in this regard. Further, growing allegiance to online gaming, music, payment portals, education and video streaming services enhances growth opportunities for Internet software companies amid coronavirus-induced shut down.
Notably, the Zacks Zacks Investment Research
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