Top 2023 Software Stocks: 2 “Strong Buy” Picks with Upside

Top 2023 Software Stocks: 2 "Strong Buy" Picks with Upside

In this post we are going to talk best 2 software stocks strong buy for 2023.

Despite their long-term growth potential in the cloud, Microsoft (NASDAQ: MSFT) and Salesforce (NYSE: CRM) have been affected by macroeconomic headwinds. As a recession becomes increasingly likely for 2023, it is difficult to predict where the bottom will be for these two blue-chip companies.

However, Microsoft and Salesforce are high-quality firms that analysts expect to see upside from, even though high-growth stocks may lose favor amid rising interest rates in 2023.

There are also several scenarios where MSFT and CRM could emerge from 2023 with gains. Let’s compare these “Strong Buy” software stocks as they face the potential challenges of a recession.

Top Software Stocks to Keep an Eye On

  • Microsoft Corp (NASDAQ:MSFT)
  • Salesforce Inc (NYSE:CRM)

Microsoft Corp (MSFT) Stock

Microsoft Corp (MSFT) Stock

Software stock Microsoft (NASDAQ:MSFT) has seen its value drop around 35% from its all-time high in the past year. While this is a significant decline, it is not as drastic as some other FAANG stocks, which have experienced losses of over 70%. Despite this, Microsoft’s cloud business Azure has remained strong, though a downgrade from UBS and the potential for a 2023 recession may affect its growth.

In the face of these challenges, CEO Satya Nadella has continued to focus on initiatives such as gaming and artificial intelligence (AI). Microsoft is currently pursuing the acquisition of game developer Activision Blizzard (NASDAQ:ATVI) and has made a $1 billion investment in OpenAI, positioning the company to be a leader in the emerging metaverse and next-generation AI. As a well-respected tech giant with a strong track record, Microsoft is worth considering as a potential addition to your portfolio.

Microsoft Corp Stock Key Points:

  • Software stock Microsoft’s value has declined around 35% from its all-time high in the past year, though it has held up better than some other FAANG stocks
  • Microsoft’s cloud business Azure has remained strong, though a downgrade from UBS and the potential for a 2023 recession may affect its growth
  • CEO Satya Nadella has continued to focus on initiatives such as gaming and artificial intelligence (AI)
  • Microsoft is currently pursuing the acquisition of game developer Activision Blizzard (NASDAQ:ATVI) and has made a $1 billion investment in OpenAI, positioning the company to be a leader in the emerging metaverse and next-generation AI
  • Despite facing challenges, Microsoft is a well-respected tech giant with a strong track record and is worth considering as a potential addition to your portfolio

Microsoft Corp Stock Technical Analysis:

Salesforce Inc (CRM) Stock

Salesforce Inc (CRM) Stock

Software stock Salesforce (NYSE:CRM) has recently announced plans to cut 10% of its workforce and adjust its capital structures in order to improve innovation and productivity. These cost-cutting measures, which aim to trim expenses by $3 billion to $5 billion, may enhance margins but could also slow sales growth in the short-term. As CEO Marc Benioff navigates the company through uncertain economic conditions in 2023, Salesforce remains one of the more affordable cloud software options with a price-to-sales ratio of 4.5. It will be important for the company to weather any potential economic storms in order to continue its success.

Salesforce Inc Stock Key Points:

  • Salesforce is trimming its workforce and adjusting its capital structures to improve innovation and productivity
  • The company has announced plans to cut 10% of its workforce
  • These cost-cutting measures aim to trim expenses by $3 billion to $5 billion and may enhance margins, but could also slow sales growth in the short-term
  • Salesforce is facing uncertain economic conditions in 2023, but has a price-to-sales ratio of 4.5, making it a relatively affordable cloud software option
  • It is important for the company to navigate potential economic storms in order to continue its success

Salesforce Inc Stock Technical Analysis:

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