With one month remaining in 2009, software as a service (SaaS) stocks remain red hot. Nine Lives Media Inc.'s SaaS 20 Stock Index is up 53.74 percent so far this year -- with 19 of the 20 index members seeing their shares rise. Here's a look at the index's year-to-date winners, plus the reason why Rackspace Hosting Inc. is joining the SaaS 20 Stock Index.
Rackspace (RAX) -- one of the industry's best-known cloud providers -- joined the index to replace Omniture, which Adobe acquired on Oct. 23. Just a reminder: We don't make buy, sell or hold recommendations nor are we endorsing Rackspace shares. Rather, the SaaS 20 Stock Index strives to track the SaaS industry's growth, evolution and health.
So far in 2009, investors have a healthy appetite for numerous SaaS companies. The SaaS 20 Stock Index's biggest year-to-date winners are:
- SuccessFactors Inc. (SFSF, +174% year to date) -- The HR and business management software provider has grown its year-over-year quarterly sales by 30%, reaching $38.7 million in Q3.
- Taleo Corp. (TLEO, +165%) -- Another fast-growing HR SaaS software provider, Taleo plans to raise an additional $132 million.
- Amazon.com (AMZN, +157%) -- best known as an online retailer, we continue to watch the emergence of Amazon Web Services, Amazon Elastic Compute Cloud (EC2) and Amazon Simple Storage Service (S3).
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