The bull case for software growth in 2024

2024 could shape This will be a rebound year for software growth rates, helping both the largest tech companies and startups.

Go back in time a few weeks later give up critical gains, software stocks found themselves in trouble. Then, new inflation data landed this week and the excitement returned. Cloud and SaaS key indexes added value quickly, while the broader but tech-heavy Nasdaq Composite opened at 13,745.96 on Monday. It closed at 14,094.38 on Tuesday and added to that figure today.

Investors were cheered as falling inflation made another rate hike by the U.S. central bank less likely. Even without a price cuts, the end of rate hikes implies the end of some structural pressure on the value of technology stocks. Add to that the hope of lower rates and growth-oriented assets, like tech stocks, could become even more attractive.

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But what about the performance of tech companies themselves? Can technology companies respond to investors’ growing confidence in their value with future results that will defend or extend these gains?

The answer is looking more and more like a yes. This is very good news for startups; emerging technology companies that have faced a market in recent quarters that has sought to cut costs instead of investing in new software; and investors are more hesitant to write new checks as prices fluctuate. A tailwind for growth, instead of the headwinds that 2022 and 2023 have brought to the startup world, would resemble a climate reversal. A pleasant breath of fresh air.

What are the arguments for software growth in 2024? Multiple additive components, some derived from public company reports, others from startup data sets and corporate expectations for AI. Overall, there are enough good vibes to indicate that tech growth will be better next year. Let’s talk about it.

Sunny data

Amplitude’s profits were the first indicators of a shift in the software sales market. This declaration especially caught our attention:

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