Amid consecutive rate hikes and rising recession odds, investor sentiment toward software stocks has deteriorated, as evident from the SPDR S&P Software & Services ETF's (XSW) 3.9% losses over the past month and 36.1% year-to-date losses.
However, demand for software and services has been robust. Also, amid rapid digitalization and tech advancements, the enterprise software industry is expected to generate massive returns in the coming years. The enterprise software market is expected to grow at a CAGR of 9.5% until 2030. Furthermore, revenue in the software market is projected to reach $593.40 billion in 2022.
