Since last year software stocks have faced the brunt of the Fed’s aggressive rate hikes leading to a price correction in most tech stocks. Despite the banking crisis, the Fed went ahead with a 25-basis point rate hike and is expected to keep hiking interest rates this year.
Although this might keep the software industry under pressure in the near term, the long-term prospects of the industry look bright. Investors looking for software stocks can invest in enterprise cloud management leader Informatica Inc. (INFA).
