Collaboration software providers rank among top performers: BofA

Team collaboration software names, such as Adobe (NASDAQ:ADBE), Autodesk (NASDAQ:ADSK), Salesforce (NYSE:CRM) and Zoom (NASDAQ:ZM) rank as some of the top performers year to date, according to Bank of America analysts.

“Collaboration is the best performing subsector year to date, rising 12% year to date while communication has underperformed the most, dropping 19% year to date,” according to BofA analysts, led by Alkesh Shah, in an investor note.

Out of all the software stock names in BofA’s collaboration subsector, Monday.com (NASDAQ:MNDY) has been the top performing stock year to date.

“As of November 4, our software coverage universe was up 1.8% from the prior week (Nasdaq -2.1%) and -3% year to date (Nasdaq +21%) which compares to +41.6% in 2023 (Nasdaq +43.4%),” Shah said. “The nine software subsectors have mixed year to date performance. The Collaboration vertical is the best performing year to date, led by Monday.com.”

“Tracking Rule of 40 for large caps, Adobe, Autodesk, Salesforce and Zoom improved the most while Snowflake (NYSE:SNOW), Bentley Systems (NASDAQ:BSY), Oracle (NYSE:ORCL) and Workday deteriorated the most on a free cash flow basis,” Shah said. “Improved spending intentions haven’t translated yet to better results.”