Technology stocks have been the worst affected by the extended market correction, with the benchmark Nasdaq Composite index declining 22.5% year-to-date. Software stocks have declined in price substantially due to the tech rout, as evidenced by the iShares Expanded Tech-Software Sector ETF's (IGV) 24.1% decline year-to-date.
However, the rapid adoption of cloud-based platforms because of the reliability, cost savings, and mobility benefits they offer has propelled the demand for cloud-based software solutions among various industries. In addition, thanks to the continuing remote-working backdrop, software spending is expected to climb 9.8% to $674.90 billion in 2022, while the U.S. software market revenue is expected to reach $384.50 billion by 2027, growing at a 4.9% CAGR.
