Enterprise software stocks, once Wall Street darlings, have fallen sharply in the past six months. But newly public enterprise software companies have been able to buck the worst of the sell-off as investors bet on rising new stars such as Confluent and Monday.com.
Shares of 11 enterprise software stocks that went public via a traditional initial public offering last year were trading 12% higher on average than their issue price as of Friday’s close. That’s a lot better than last year’s tech IPOs, which are down 21% on average from their listing prices, according to data provider Koyfin. The enterprise IPOs have also outshined enterprise tech stocks in general, which have sunk 12% in the last year.