Investors may be underestimating the degree to which the enterprise software sector could be affected by the coronavirus crisis, experts told Business Insider.
Many software makers have outperformed the broader stock market during the crisis and some, including Microsoft, have seen their shares near their all-time highs.
But such companies aren’t immune to the downturn and some are already being affected by it, the experts said.
Companies are dropping certain applications, looking for price concessions, or reducing their spending because they no longer have as many workers, the experts said.
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If you focused only on the stock market or spoke to the companies’ boosters, you might think the enterprise software sector of the tech industry had little to fear from the coronavirus crisis.
It’s not just that companies that are obvious beneficiaries of the work-from-home trend have seen their share prices soar, like video conferencing software maker Zoom or e-commerce services provider Shopify. Many enterprise software makers have outperformed the broader market over the last three months and some, including Microsoft, are near their all-time highs. What’s more, some analysts have argued that such companies, by their nature, are better protected from — if …read more
Source:: Businessinsider – Tech