Investment insights from Capital Group
Frequent corrections have been the norm for software stocks
Sources: Capital Group, Morningstar Direct. Corrections are defined by a share price decline of 10% or greater. The reference period for number of corrections, average depth of correction and cumulative return calculations begins in 2007, or date of company IPO, whichever is earlier. As of December 31, 2021.
The duration of growth for leading cloud software makers has outpaced expectations
Sources: Capital Group, Refinitiv Datastream. Prior estimates are based on consensus analyst estimates as of one year prior to actual sales results.
The need for cyber security will soar as the cloud expands
Sources: Capital Group, Statista. "CAGR" represents the compound annual growth rate. As of August 2021.
Cloud adoption could gather steam as the world catches up with the U.S.
Source: IDC, Worldwide Public Cloud Services Spending Guide. Data as of June 2021
Source: Capital Group.
Market Volatility
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