Recessions can be tough for tech companies that depend on advertising, corporate spending, and other macro-sensitive trends. Tech stocks trading at frothy valuations can also crash.
However, that doesn’t mean that investors should avoid all technology stocks during an economic downturn. Instead, investors should choose technology stocks that target long-term growth trends rather than macroeconomic trends. These three resilient stocks are perfect for you: Palo Alto networks (NYSE: PANW), Veeva systems (NYSE: VEEV), and Adobe (NASDAQ: ADBE).
1. Palo Alto Networks
Cybersecurity companies are inherently resistant to recessions as companies need to maintain their digital defenses regardless of macroeconomic headwinds. Some frothy cybersecurity stocks could stumble with the market during a recession, but those that offer a good balance of growth, profitability, and value – like Palo Alto Networks – will do well.
Palo Alto’s core …