In this article, we will look at the 5 Best SaaS Stocks to Buy According to Reddit. Please visit the 10 Best SaaS Stocks to Buy According to Reddit if you’d like to see an extended list and methodology behind it.
5. Adobe Inc. (NASDAQ:ADBE)
Number of Hedge Fund Holders:86
Adobe Inc. (NASDAQ:ADBE) is one of the 10 Best SaaS Stocks to Buy According to Reddit. On June 29, TheFly reported that Phillip Securities downgraded its rating on Adobe to Neutral from Buy, reducing its price target to $203 from $385.
The analyst noted that despite legacy software-as-a-service (SaaS) remaining resilient due to its mission-critical nature and reliability, the company’s growth has slowed despite a head start in AI.
Photo by Jakob Owens on Unsplash
Adobe earlier reported a 13% increase in its revenue for the second quarter of its fiscal year 2026 at $6.62 billion from the $5.87 billion registered in the same period last year. The company also reported a GAAP net income during the period amounting to $1.71 billion, while non-GAAP net income registered at $2.40 billion.
Earlier this month, Adobe reported that it has entered into a definitive agreement for the acquisition of Topaz Labs, an AI company specializing in industry-leading video and image enhancement models.
Adobe said the addition of Topaz Labs will expand its video and image model offerings with state-of-the-art AI enhancement models in Adobe Firefly, Firefly Services and Creative Cloud apps, providing customers with tools to achieve exceptional quality across every format and workflow.
Adobe Inc. (NASDAQ:ADBE) is a global technology firm that provides creativity and productivity-focused platforms and tools for both businesses and individuals.
4. Salesforce Inc. (NYSE:CRM)
Number of Hedge Fund Holders: 101
Salesforce Inc. (NYSE:CRM) is one of the 10 Best SaaS Stocks to Buy According to Reddit. On July 1, Guggenheim upgraded its rating on Salesforce to Buy from Neutral, setting a price target of $228.00, according to a report by Investing.com.
The analyst highlighted that the company’s current valuation of 3.7 times recurring revenue and 11 times enterprise value to next-twelve-month consensus free cash flow is an attractive entry point for investors.
In contrast, Phillip Securities downgraded Salesforce to Neutral from Buy with a reduced price target of $166 from $270, according to a report by TheFly on June 29.
Earlier on June 15, Salesforce announced that it had forged a definitive agreement for the acquisition of customer agent company Fin, formerly Intercom, for approximately $3.6 billion.
Jefferies earlier expressed optimism for the acquisition, as it will accelerate AI adoption in the company’s installed base. The analyst highlighted that 15 M&A deals signed by Salesforce since May 2025 are helping accelerate innovation, as the company looks to reinvent itself amid the AI displacement narratives.
Salesforce Inc. (NYSE:CRM) helps organizations become agentic enterprises by integrating humans, agents, apps, and data on a trusted, unified platform to unlock unprecedented growth and innovation.
3. Intuit Inc. (NASDAQ:INTU)
Number of Hedge Fund Holders: 103
Intuit Inc. (NASDAQ:INTU) is one of the 10 Best SaaS Stocks to Buy According to Reddit. Based on 34 analyst ratings compiled by CNN, 76% marked Intuit Buy while 21% assigned a Hold rating. The stock has an average price target of $446.50, a 71.07% upside from the current price of $261.
Earlier on June 18, Stifel downgraded its rating on Intuit to Hold from Buy while reducing its price target to $275 from $375 amid pricing strategy concerns, according to a report by Investing.com.
Stifel analyst Brad Reback highlighted the company’s shift to a more value-based pricing strategy after years of aggressive price increases, particularly at the lower end of each business segment, in a bid to address recent market share losses.
Stifel said it expects Intuit’s management to reduce near-term and medium-term growth targets for both TurboTax and QuickBooks Global Business Solutions when the company reports fourth-quarter results and holds its analyst day in September.
Meanwhile, on June 2, Goldman Sachs analyst Gabriela Borges downgraded Intuit to Sell from Neutral, reducing the price target to $276 from $519, according to a report by TheFly. The analyst emphasized that consensus estimates are likely too high for the next three years, noting that the company may have to revise its long-term growth targets downward.
In the third quarter of its fiscal year 2026, Intuit registered a 10% rise in total revenues to $8.6 billion. For its full fiscal year, the company expects revenues of $21.341 billion to $21.374 billion, growth of approximately 13% to 14%.
Intuit Inc. (NASDAQ:INTU) is a global financial technology platform. It has approximately 100 million customers worldwide using products such as TurboTax, Credit Karma, QuickBooks, Mailchimp, and Intuit Enterprise Suite.
2. ServiceNow Inc. (NYSE:NOW)
Number of Hedge Fund Holders: 108
ServiceNow Inc. (NYSE:NOW) is one of the 10 Best SaaS Stocks to Buy According to Reddit. On July 1, TheFly reported that Guggenheim upgraded its rating on ServiceNow to Buy from Neutral with a price target of $125.
The analyst highlighted that at its current share price, the stock offers an attractive opportunity for investors to buy a comfortably profitable firm that is likely to continue to grow organically in the double digits for the foreseeable future.
On the same day, Evercore ISI maintained its Outperform rating on ServiceNow while also keeping a price target of $150, according to a report by Investing.com. The analyst highlighted the company’s focus shift from a long-term artificial intelligence strategy to near-term execution.
Evercore ISI emphasized the need for ServiceNow to demonstrate consistent execution and clear messaging around organic versus inorganic growth to shift investor sentiment.
Earlier on June 29, ServiceNow, along with Accenture, launched an offering with two core components, particularly managed security services built on the ServiceNow AI Platform and an Accenture AI-powered solution that automates migration from legacy systems to ServiceNow.
The two companies highlighted that the offering equips organizations with essential risk management services powered by agentic AI to stay ahead of evolving threats, strengthen long-term cyber resilience, and combat the escalating scale, severity, and financial cost of cyberattacks.
ServiceNow Inc. (NYSE:NOW) provides an end-to-end workflow automation platform for digital businesses. The ServiceNow AI Platform integrates with any cloud, any model, and any data source to orchestrate how work flows across the enterprise.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 282
Microsoft Corporation (NASDAQ:MSFT) is one of the 10 Best SaaS Stocks to Buy According to Reddit. On July 1, enterprise technology services company Kyndryl announced the expansion of its sovereignty solutioning through new capabilities and services with Microsoft.
Under the collaboration, Kyndryl Sovereignty Solutioning will be combined with Microsoft Sovereign Cloud capabilities to support customers in designing, building, and operating cloud architectures that align with evolving data residency and operational requirements while maintaining flexibility and innovation.
Kyndryl said the capabilities support the full spectrum of Microsoft’s sovereign cloud approach, including public cloud capabilities and private cloud solutions using Microsoft Azure Local.
On the same day, consumer health company Haleon announced a five-year collaboration with Microsoft aimed at scaling its digital, data and AI capabilities across its businesses.
Haleon said the new agreement builds on its existing use of Microsoft 365 Copilot and expands the adoption of AI-powered tools across the business. Moreover, the two companies will co-create high-impact AI use cases that deliver value across multiple critical functions, from consumer insights and innovation to supply chain and commercial execution.
Of the 62 analyst ratings compiled by CNN, 95% rated Microsoft Buy, while 5% rated it Hold. The stock has an average price target of $550, a 47.45% upside from the current price of $373.02.
Microsoft Corporation (NASDAQ:MSFT) is a technology company that creates platforms and tools powered by AI to deliver innovative solutions that meet the evolving needs of customers.
While we acknowledge the potential of MSFT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, check out our report about the cheapest AI stock.
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