Scott Berg, now a Senior Analyst, joined Needham & Company, LLC in 2015. Previously, he was Senior Research Analyst at Northland Capital Markets covering enterprise/application software. In his exclusive interview with the Wall Street Transcript, Mr. Berg details his current view on the enterprise software market. He is currently not too concerned about lofty stock prices in this sector:
“I’m less worried about valuations today, because while they’re certainly healthy, we know we’re not where anyone would consider to be too overvalued.”
However, exposure to the retail industry is taking its toll on the software that those retailers use:
“When I look at large vertical or industry trends, as I mentioned with SPS Commerce (NASDAQ:SPSC) earlier, any company that is a software vendor with high exposure to the retail industry I see as going to be challenged over the next two years.”
Some bright spots include companies that will reap the benefits of blockchain technology adoption.
“The closest one is a company called Amber Road (NYSE:AMBR). Their core product deals with global trade management software, and blockchain sits actually very nicely into what their products can do down the line…Amber is also going to have some very ancillary and complementary technologies with what companies like IBM (NYSE:IBM) are doing.
Read the entire interview at the Wall Street Transcript to get Scott Berg’s detailed analysis.