In 2024 we could see software development rates pick up, helping both the biggest tech companies and startups.
Winding the clock back a few weeks, after conceding big gains, software stocks have been in a funk. Then, new inflation data landed this week and the boom is back. Basic cloud and SaaS indexes quickly added value, while the broader but tech-heavy Nasdaq Composite opened at 13,745.96 on Monday. It closed at 14,094.38 on Tuesday, and is being added to that tally today.
Investors cheered because falling inflation makes it less likely that the US central bank will raise interest rates further. Even without a rate cuts, The end of rate hikes means that some structural pressure on the value of tech stocks is coming to an end. Throw in hopes of a rate cut and growth-oriented assets like tech stocks could become even more attractive.
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But what about the tech company’s performance itself? Can tech companies counter rising investor confidence in their value with future results that defend or extend those gains?
The answer looks more and more like yes. This is very good news for startups. tech startups that have faced a market in recent quarters that has been trying to cut costs instead of investing in new software. and investors were more reluctant to cut new checks while prices were in flux. A growth tailwind instead of the headwinds that 2022 and 2023 brought to startupland would seem like a climatic reversal. An exciting breath of fresh air.
What is the case for software development in 2024? Several additional ingredients, some from public company reports, some from startup datasets and AI business expectations. Overall, there are quite a few good sentiments that indicate that technology development will be better in the coming year. Let’s discuss it.
Sunny data
An early indication that the software sales market was shifting came via Amplitude’s earnings. This statement specifically caught our attention:
