Why SaaS Stocks Were Flying Higher Wednesday
On a wild day for the markets, software-as-a-service (SaaS) stocks were among the big winners. Investors are still waiting for the results from the U.S. presidential election, and a final outcome could be delayed for a few days.
Stocks rallied broadly, with tech stocks among the biggest winners. The reason for the market rally wasn't fully clear, though investors may be relieved that the election has thus far gone off with no major disruptions, and also that a divided government, which looks likely, also tends to mean no major changes, which the market generally likes.
Tech stocks were big gainers, as they are increasingly seen as a safe haven by investors despite sometimes high valuations, especially during the pandemic. What's also important is that these companies provide necessary services and therefore can deliver strong results even in an uncertain environment like a government transition or pandemic. No matter what happens in Washington, the transition to the cloud will continue, and investors again bid up a sector that has already won big this year.
Source Fool.com
