Another Bad Sign for Tech Stocks—Cloud Spending Is Fading

The move to cloud-native software was supposed to be unstoppable. But this past week, we learned even the best secular trends have their limits and aren’t completely immune to a slowing global economy.

For much of this year, enterprise spending for cloud projects held up better than consumer-oriented end markets. Many analysts expected demand to remain robust because the shift to the cloud from legacy on-premise technology offered real cost savings, better reliability, and flexibility.