Software-as-a-service companies — which license software products on a subscription basis — took a beating in the markets in September. According to RBC Capital Markets, the average return of the 21 SaaS companies the firm covers was -5.9% for the month, while the S&P 500 rose 1.7%. RBC also said SaaS companies could fall another 25% as investors rotate into defensive stocks in the face of geopolitical uncertainty and concerns about budget tightening.
Software-as-a-service companies — which license software products on a subscription basis — took a beating in the markets in September. According to RBC Capital Markets, the average return of the 21 SaaS companies the firm covers was -5.9% for the month, while the S&P 500 rose 1.7%. RBC also said SaaS companies could fall another 25% as investors rotate into defensive stocks in the face of geopolitical uncertainty and concerns about budget tightening.