These Tech Stocks are Eating the World

One sector has proven to be a goldmine for investors over the past decade. We explain why, live on YouTube!

Eight years ago, one of the world’s most successful venture capitalists penned a letter in the Wall Street Journal explaining how every single industry was being taken over by tech-driven disruptors and warning that the only incumbents that would avoid disruption were those that were investing heavily in software.

His point: software is eating the world.

The letter now lives in investing lore, but its point remains relevant today — software has officially taken over.

The four largest companies in the S&P 500 are all tech companies that lean heavily on software — Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Facebook (NASDAQ: FB) — and some of the greatest investments of the past couple years have been software companies.

But software isn’t done consuming, and a whole new class of companies are harnessing it to capture incredible growth and reward investors along the way. Today, we’re live on our YouTube channel to explain how the software model has changed over the past decade and to share a couple top SaaS stocks investors should keep their eyes on.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Chris Hill owns shares of Amazon. Jason Moser owns shares of Amazon, Apple, and DocuSign. Joey Solitro owns shares of Amazon, Avalara Inc, DocuSign, and Facebook. The Motley Fool owns shares of and recommends Amazon, Apple, DocuSign, Facebook, and Microsoft. The Motley Fool has the following options: short January 2020 $155 calls on Apple, long January 2020 $150 calls on Apple, short January 2020 $155 calls on Apple, long January 2020 $150 calls on Apple, and long January 2021 $85 calls on Microsoft. The Motley Fool has a disclosure policy.

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