Software tends to feel a recession later than other areas

S&P software enjoyed a great run in the back half of last decade but higher interest rates and elongating sales cycles haven't been kind to the group over the last year. Brad Sills joins to discuss how he expects the onset of a recession to be an overhang for the group. Still, he points out that many stocks are getting very little credit for growth, as they're mostly trading on the value of their recurring business. Brad discusses why renewal rates are so important for software companies and why there's still substantial opportunity ahead, especially in small and medium business software and migration to the cloud. 

 

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