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In conclusion, while many software stocks are currently grappling with significant challenges, they also present intriguing investment opportunities. With strong fundamentals, sticky revenues, and an evolving market, there remains a possibility for future growth, particularly for companies like ServiceNow and Microsoft. Ultimately, investors willing to look past current volatility may find substantial value in the software sector.

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

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