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Forget Phunware, Buy These 4 Software Stocks Under $10 Instead -Breaking

by Mike Robinson

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© Reuters. Avoid Phunware and Buy These 4 Software Stocks Below $10

Digitization is driving the software market’s growth. Advertising software startup Phunware (PHUN), linked to President Donald Trump, doesn’t look well-funded enough to take advantage of the sector tailwinds. It could also be worthwhile to place your money on software stocks Rimini Street (NASDAQ:), NetSol NTWK, Evolving Systems EVOL and SilverSun SSNT. These stocks trade at less than $10, but have strong fundamentals. Continue reading. The software market has grown because of a growing dependence on cloud-based data services, such as data storage and data insight, by both small and large businesses. Software is a major investment by businesses to improve and upgrade their business processes. A report by a Gartner The report from NYSE: shows that worldwide spending on public clouds is forecast to increase by 23% by 2021. The global software market is expected to reach $823.71 billion by 2026, registering a 7.2% CAGR.. Investors’ interest in the software industry is evidenced by the iShares Expanded Tech-Software Sector ETF’s (IGV) 22.4% returns over the past six months.

Although shares of advertising software start-up Phunware, Inc. (PHUN)—which is linked to former President Donald Trump—skyrocketed in price in October due to the Trump-related frenzy on major Reddit forums, its revenues decreased 31% year-over-year to $2.16 million in its last reported quarter. Gross profit dropped 49.2% from $1.13 million to its value a year ago. Although the stock price has increased by 290.5% over three months, the stock’s value dropped to $1.13 million over the month. It has also lost 61.3% during the same period. After the October disclosures by ex-president about his social media plans, stocks began to fall. Considering PHUN’s weak financials, we think the stock is best avoided now.

We think fundamentally sound software stocks Rimini Street, Inc. (RMNI), NetSol Technologies, Inc. (NTWK), Evolving Systems, Inc. (EVOL), and SilverSun Technologies, Inc. (SSNT), which are currently trading at less than $10, could be ideal bets instead to capitalize on the industry’s solid growth prospects.

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