As companies tighten their budgets ahead of a potential recession, enterprise software spending is likely to slow in 2023. That has consequences for many stocks in the group.
KeyBanc Capital Markets analyst Michael Turits said in a research note Monday that a recent survey of technology resellers found expectations for just 0.8% growth in spending on information technology this year, compared with a 3.6% increase in 2022. Growth is slowing at the large cloud players, including Amazon Web Services, Microsoft Azure and Google Cloud, and nine of the companies he covers have announced job cuts since last June, Turits wrote.
Source: https://www.barrons.com/articles/tech-spending-slowdown-stocks-toplay-51675701784?siteid=yhoof2&yptr=yahoo
Buy Splunk Stock, Not Datadog, as Cloud Growth Slows, One Analyst Says
As companies tighten their budgets ahead of a potential recession, enterprise software spending is likely to slow in 2023. That has consequences for many stocks in the group.
KeyBanc Capital Markets analyst Michael Turits said in a research note Monday that a recent survey of technology resellers found expectations for just 0.8% growth in spending on information technology this year, compared with a 3.6% increase in 2022. Growth is slowing at the large cloud players, including Amazon Web Services, Microsoft Azure and Google Cloud, and nine of the companies he covers have announced job cuts since last June, Turits wrote.
Source: https://www.barrons.com/articles/tech-spending-slowdown-stocks-toplay-51675701784?siteid=yhoof2&yptr=yahoo