3 Stocks to Watch as Firms Cut Costs Ahead of Potential Recession

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S&P 500 News

Microsoft Corporation,Amazon.Com Inc,Salesforce Inc

Stocks Analysis by MarketBeat.com (Gabriel Osorio-Mazzilli) covering: S&P 500, Microsoft Corporation, Amazon.com Inc, Salesforce Inc. Read MarketBeat.com (Gabriel Osorio-Mazzilli)'s latest article on Investing.com

Investors are worried about a potential recession in the coming quarters, making certain technology stocks more attractive than ever.

Investors today are worried about a potential recession in the United States economy, considering some slowing indicators such as inflation and employment. Today, more than ever, the two camps are divided and cannot agree on a direction. Data weakens, but theSpeculating during volatility is one of the most futile activities to undertake with capital, so investors need to focus on the fundamentals and figure out what the future may look like a few quarters from now.

The market is typically willing to overpay for stocks it believes will deliver better growth or provide more safety in the face of volatility. Of course, this is not a value play; it is a play for the future growth and safety of capital during a potential recession.Companies that have accumulated several costs in sales teams and customer relations may be looking to trim the fat soon.

During uncertainty, investors will look for more stable and predictable cash flows, and subscription revenue is as predictable as possible. This is why analysts at Raymond James decided to boost their price targets for the company.

 

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