Since last year, the software industry has faced the brunt of the Fed’s aggressive interest rate hikes to quell inflation. However, industry participants like Oracle Corporation (ORCL), GoDaddy Inc. (GDDY), and Xperi Inc. (XPER) should benefit from accelerated demand for digital transformation and the ongoing shift to the cloud. With IT spending set to accelerate by nearly five times this year, let’s explore why these stocks could be ideal buys.
The stock market has been volatile over the past few weeks as the Federal Reserve signaled that interest rates could go even higher than anticipated. Data on Friday exhibited strong hiring in the United States in February while wage growth slowed, eventually spurring a broad selloff. Regardless, the tech-heavy Nasdaq Composite notched a positive week and is up 11.8% year-to-date.
