What happened Shares of Coupa Software (NASDAQ: COUP) climbed 29.2% higher in May, according to data provided by S&P Global Market Intelligence. The company didn't report any news during the month, so you wouldn't normally expect that kind of run. But investors these days are keen on cloud-based software companies. Coupa Software's gains in May mirror those of many other companies. It's led some analysts to say the space is overvalued. But based on May's returns, investors say otherwise. COUP data by YCharts. So what Coupa reported full-year fiscal 2020 results back in March. At the time, it showed 48% year-over-year revenue growth, generating $345 million. Most of this was subscription-based revenue. The company's net loss by generally accepted accounting principles (GAAP) widened to $91 million, but it was free-cash-flow positive. With these results, Coupa issued full-year fiscal 2021 expectations including revenue guidance of $488 million to $490 million. That 25% growth rate is a significant drop from fiscal 2020. Consider that Coupa demands a premium valuation -- it currently trades with a forward price-to-sales ratio of 29. Typically, stocks with this kind of valuation fall once growth slows. Coupa is bucking that trend by steadily rising since issuing guidance. Image source: Getty Images. Now what To be clear, analysts aren't wary of technology stocks like Coupa simply because of the high valuations. Rather, many expect businesses to reduce spending on software in the coming quarters because of the economic uncertainty caused by the coronavirus. This could cause some companies to miss expectations. Indeed, in Coupa's earnings call, it acknowledged that guidance factored in business travel cutbacks, but it could have underestimated the negative impact. Shareholders will have answers next week. Coupa is schedule to report first-quarter results on June 8. 10 stocks we like better than Coupa SoftwareWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Coupa Software wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of April 16, 2020 Jon Quast has no position in any of the stocks mentioned. The Motley Fool owns shares of Coupa Software. The Motley Fool has a disclosure policy.Source