Although technology stocks have hit skids this year, Goldman Sachs analysts see some opportunities in the software sector.
“While the likelihood of a recession is low, we believe that software business models are more insulated from severe economic shocks than previous collapses,” they wrote in a commentary.
That’s because of the “reliance on recurring revenue and built-in cost agility that can support operating leverage,” they said.
“This combination could make the sector a more defensive game than in the past, as we saw at the beginning of the pandemic.”
