2022's bear market sent cloud computing stocks into a downward spiral, and bad news has kept coming in 2023. The Fed indicates interest rates will stay higher for longer (remember, higher rates lower the present value of a business), and many companies put a pause on spending on new software-based projects to conserve cash. 

The result has been another lackluster year for many cloud stocks, especially those in the mid-cap and small-cap universe. But that could be a big win for investors with a long-term mindset. 

Reinforcing the belief that 2023 has been another terrible year for software technology is the fact that many company executives point out time and again on earnings calls that "customer spending has slowed." With fears of recession flaring up multiple times throughout 2023, cash conservation is the norm, and giving the red light to new software projects (or at least delaying the green light until 2024) is a top way to do so. 

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Source Fool.com