Twilio, Hubspot seen as top software picks coming out of recession, RBC says

Aug. 22, 2022 9:28 AM ETTwilio Inc. (TWLO), HUBSMSFT, CRM, GWRE, VEEV, BOX, DOCU, COUP, MDB, SMAR, ZM, ASANBy: Chris Ciaccia, SA News Editor9 Comments

U.S. Markets React To UK Referendum On EU Membership

Drew Angerer

  • Twilio (NYSE:TWLO) and Hubspot (NYSE:HUBS) are the top software stock picks when the global economy comes out of a recession, investment firm RBC said on Monday.
  • Twilio (TWLO) and Hubspot (HUBS) shares fell 2% and 4%, respectively.
  • Analyst Rishi Jaluria said that in a recession, Veeva Systems (VEEV) is viewed as the company most likely to benefit in a market downturn, as it is seen as "one of the most defensive names in software."
  • Other companies such as Microsoft (MSFT), MongoDB (MDB), Guidewire Software (GWRE), Box (BOX) and Salesforce (CRM) also scored well in the company's recession framework.
  • Conversely, Asana (ASAN) is seen in a negative light, due to its cash burn, a high exposure to startups and the fact it has "more product than platform."
  • Other companies that are likely to be hit in a downturn are Coupa Software (COUP), DocuSign (DOCU), Smartsheet (SMAR) and Zoom Video Communications (ZM).
  • Earlier this month, investment firm Argus downgraded Twilio (TWLO) after the communications software company issued a weak outlook for the third quarter, citing some tough forthcoming comparisons.

Recommended For You

Comments (9)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.