'Impressive turnaround': software makers' stocks come out on top after war breaks out
CrowdStrike systems repel massive cyberattacks by pro-Iranian hacker groups on infrastructure in Israel, Europe and the US. Photo: bluestork/Shutterstock
Some of the most problematic areas of the market began to show outperformance since the beginning of the war of the USA and Israel against Iran, analysts of Deutsche Bank Research say. In particular, in the leaders of growth were the shares of software manufacturers, which at the beginning of the year experienced the so-called software apocalypse, writes MarketWatch.
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Many shares of software developers have made an "impressive reversal" from their lows recorded before the conflict in the Middle East, noted the head of macroeconomic and case studies at Deutsche Bank Research Jim Reed. The war with Iran provided "an unexpected pause in the steadily building negative momentum for the sector," the analyst notes. At the same time, "almost every major global asset class - with the exception of oil - has lost ground over the past two weeks," he adds.
Software companies that have outperformed since the start of U.S., Israeli and Iranian hostilities include players such as CrowdStrike, Palantir, Datadog, Intuit, CoreWeave, Oracle and ServiceNow. While the broad market sagged more than 2% due to the oil shock, the iShares Expanded Tech-Software Sector Profile ETF is up 4.85% from its Feb. 28 lows.
The Motley Fool highlights Palantir and CrowdStrike: As traditional ground operations give way to technological warfare, these companies have become key defense solution providers for the U.S. and its allies. Palantir's platforms are critical to the Pentagon in analyzing satellite data and tracking Iranian arms shipments, while CrowdStrike's systems repel massive cyber attacks on infrastructure by pro-Iranian hacker groups.
Unlike classic military contractors, Palantir and CrowdStrike have high margins and are in demand in the civilian sector, which allows them to remain stable even in the face of high market volatility and concerns about the impact of AI on the industry, emphasizes The Motley Fool. Palantir shares are up 15% from their February lows, while CrowdStrike securities have soared nearly 19%. At the premarket on March 18, Palantir shares were up 0.7%, while CrowdStrike was up 0.4%.
This article was AI-translated and verified by a human editor
