3 Software Stocks Walking a Fine Line

Industry
โดย Yahoo Finance·Read original
Summary · why it matters

Three software stocks—Sprout Social, Paycom, and Dolby Laboratories—face headwinds as the software industry pulls back 13% over six months, contrasting with the S&P 500's 6.3% gain. Sprout Social saw average billings growth of 9.6% over the last year and estimated sales growth of 6.9% for the next 12 months, implying a slowdown, while persistent operating losses raise concerns. Paycom's average billings growth of 9% and estimated sales growth of 6.7% suggest decelerating demand, and its operating margin remained flat. Dolby Laboratories posted 2.1% annual sales growth over five years, below typical software companies, and its operating margin declined by 2 percentage points as costs rose faster than revenue.

Impact on stocks 3

Cloud & Digital Infrastructure▼ · 2 stocks
Paycom Software, Inc.
PAYC
▼ NegativeDemandrelevance

Paycom's average billings growth of 9% and estimated sales growth of 6.7% suggest decelerating demand.

Sprout Social Inc
SPT
▼ NegativeDemandrelevance

Sprout Social's average billings growth of 9.6% and estimated sales growth of 6.9% imply a slowdown in demand.

Information Technology▼ · 1 stocks
Dolby Laboratories
DLB
▼ NegativeDemandrelevance

Dolby's 2.1% annual sales growth over five years is below typical software companies, indicating weak demand.

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