The possibility of multiple interest rate hikes amid historically high inflation and Russia’s invasion of Ukraine have fostered significant market volatility this year, hurting the technology sector. And concerns that sanctions imposed by the West over Russia’s invasion of Ukraine could keep fuel market volatile in the near term.
Negative investor sentiment toward the software industry is evidenced by the iShares Expanded Tech-Software Sector ETF’s (IGV) 14.8% year-to-date decline. But despite declining significantly, many software stocks still look overvalued at their current price levels due to their weak financials and growth prospects.
