COVID-19 Fear Creates Rare Opportunity for Software Investors
Sharp sell-off leaves valuations attractive.
|Editor’s note: Read the latest on how the coronavirus is rattling the markets and what investors can do to navigate it.|
Concerns about the developing global COVID-19 pandemic have sent the equity market, and software along with it, into a tailspin. Before the sell-off, we viewed software in general as a compelling secular growth story but with limited opportunities for upside based solely on valuation. The situation is rapidly evolving, with the worsening crisis in the United States offset somewhat by the advancing of the giant $2 trillion financial rescue package. Uncertainty remains high, but we think fear remains higher.
Dan Romanoff does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.