The Zacks Internet Software industry has shown volatility amid concerns that AI could disrupt traditional Software as a Service (SaaS) models, compounded by geopolitical risks and tariff uncertainties. Notably, companies like MongoDB (MDB), Digital Turbine (APPS), and 8×8 (EGHT) are benefiting from increased demand for digital transformation and cloud solutions. MongoDB reported a 29% year-over-year revenue increase for Q2 FY26, attributed to a growing customer base that now includes over 70% of the Fortune 500.
Currently, the Zacks Internet Software industry holds a rank of #139, placing it in the bottom 43% of over 250 Zacks industries, with a negative earnings outlook impacting constituent companies. Over the past year, the industry returned 16.9%, trailing both the S&P 500’s 17.2% gain and the broader Computer and Technology sector’s 23.1% growth. The industry’s forward 12-month price-to-sales (P/S) ratio is at 4.09, compared to 5.30 for the S&P 500 and 6.8 for the sector.
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