Because the enterprise software market is booming with continuing digital transformation and remote lifestyles, we think prominent companies in this space, Microsoft (MSFT) and Atlassian (NASDAQ:), should witness increasing demand for their solutions. But which of these stocks is a better buy now? Read more to find out.Tech giant Microsoft Corporation (NASDAQ:) is known for its broad portfolio of products and services, such as Microsoft Teams, Office 365 Security, and Xbox hardware. In addition, it provides cloud-based solutions. In comparison, Sydney, Australia-based Atlassian Corporation Plc (TEAM) designs, develops, licenses, and maintains various software products such as JIRA, a workflow management system.
Threats related to data security, especially on cloud-based platforms, continue to threaten the enterprise software market’s growth. Nevertheless, that market is still expected to grow exponentially in the coming months owing to increasing demand from almost every industry as part of digital transformation efforts and a continuation of widespread remote lifestyles. According to a Statista report, the worldwide enterprise software market is expected to grow at a 8.74% CAGR between 2021 – 2026. So, both MSFT and TEAM should benefit.
TEAM has gained 50.3% in price over the past three months, while MSFT has returned 13.4%. Also, TEAM’s 82.8% gains over the past six months are significantly higher than MSFT’s 27.8% returns. And in terms of their past nine months’ performance, TEAM is the clear winner with 134.1% gains versus MSFT’s 46.9%.
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