The software industry has benefited from the pandemic-led acceleration of digitization and remote lifestyles. While post-pandemic normalcy has reduced software companies' record-high business growth rates, the increasingly digitalized world brightens the industry’s long-term prospects.
This year's rising interest rate environment and the increasing odds of a recession have led to a massive tech sell-off. The tech-heavy Nasdaq has lost more than 30% year-to-date. Moreover, the market expects another rough tech earnings season, which further pressures software stocks.
