5 Most Profitable Businesses in 2021

1. Software Business

As businesses begin offering their services online, they require online tools such as software to help them navigate, manage, develop, and deliver their products and services. Moreover, many large industries such as the financial industry, healthcare industry, and manufacturing industry need customized software due to the shift from analog systems of production to digital and mechanized systems. The software business deals with the development, publishing, and maintenance of either cloud-based software or licensed software. The growth trend of the software industry for the past 5 years since 2016 has increased significantly, from 5.32% growth between 2011 and 2015 to 7.8% growth between 2016 and 2021. This is because businesses and customers alike have invested in technology such as video games, computers, and software programs, which has had the effect of increasing the demand of software from businesses in recent years. Furthermore, we are seeing a rise of businesses that only operate internet-based solutions, which demand customized software to support their services.

VMware, Inc. (NYSE: VMW) is a software developing company in the US that boasts a revenue of $10.81 billion in fiscal year 2020, displaying an increase of 12% from the previous year. Moreover, its stock price soared 16.94% in the past year. Additionally, Oracle Corporation (NYSE: ORCL) is another profitable software company. The company’s revenue for the fiscal year 2020 was $39.1 billion, and its stock price rose 42.12% in the past 12 months.

The software industry boats high margins on its products, especially the software designed to suit a larger customer base. Inversely, custom-written software usually allows for narrower profit margins. Although the software industry is a fraction of the overall computer programming industry that takes place, the total market size of the software publishing industry in the United States in 2021 is forecasted to be $396.7 billion. The total profit generated from the software industry in 2021 is forecasted to be $115.8 billion. The software publishing industry is hence one of the most lucrative in the country.

You can also take a peek at George Soros’ Top 10 Stock Picks and 15 Most Valuable Cloud Computing Companies.

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