Microsoft, Workday Among Wells Fargo Favored Software Stocks

Software shares have stumbled this year, in line with other technology stocks. The S&P Software & Services Select Industry Index has slid 31% so far in 2022.

But hope isn’t lost, says Wells Fargo analyst Michael Turrin.

“Rising rates, inflation, [the war in Ukraine], and tightening labor markets have contributed to increasing concerns around a tougher spending environment and potential recession in late 2022/2023,” he wrote in a commentary.

And that’s putting the kibosh on software stocks. 

Nonetheless, “fundamentals have remained remarkably resilient thus far,” Turrin said.

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