Microsoft Makes Goldman List of Strong Software Stocks

Though technology stocks have hit the skids this year, Goldman Sachs analysts see some opportunities in the software sector.

“While the probability of a recession is low, we believe software business models are far more insulated from severe economic shocks than past downturns,” they wrote in a commentary.

That’s because of “the reliance on recurring revenue and built-in expense agility that can support operating leverage,” they said.

“This combination can make the sector a more defensive play than it was in the past, as we saw at the onset of the pandemic.”


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