Software stocks were among the hardest hit in the recent market correction due to inflationary concerns, increasing interest rates, semiconductor shortages, and geopolitical crisis owing to Russia’s invasion of Ukraine. As a result, the market volatility surged dramatically, and the CBOE Volatility Index jumped 31.8% over the past three months. Due to the prevailing market fears, investors began to flee the tech growth stocks. The selloff in tech stocks stumbled the U.S. equity indexes. The tech-centric NASDAQ Composite index declined 13% year-to-date.
However, many software stocks are now undervalued and have promising long-term growth prospects. These stocks are expected to recover in the coming months, which makes now a great time to buy them at a discount.
