April’s “Liberation Day” tariff scare wiped out trillions from the market, and some investors fear that a recent reescalation in tariff talks could trigger similar fallout.
President Donald Trump recently extended the initial tariff pause to Aug. 1, however, the tariff announcements are already flowing. Investors are closely watching U.S.-China trade talks and Russia and its BRICS peers. New tariffs on copper recently, for instance, set the market in motion.
No matter how things shake out, one of the hottest corners of the market is mostly free from tariffs.
According to Morgan Stanley analysts, tariffs “don’t matter” for software stocks. Here are three especially poised to win in the months ahead.
Okta (OKTA) is a software company specializing in identity and access management, helping corporate clients with secure user authentication.
Momentum in this niche is unlikely to slow due to tariffs. Q1 revenue rose 12% year-over-year to $688 million, and subscription revenue hit $673 million. Free cash flow also jumped to $238 million, a 35% margin that dwarfs most hardware-oriented tech peers.
Okta closed the quarter with $2.725 billion in cash and short-term investments and only modest debt. Management believes adjusted operating income will grow to between $710 million to $720 million this fiscal year.
Things look very healthy here. The company turned profitable around a year ago and has successfully trimmed debt and increased cash while increasing both margins and revenue. OKTA stock is also down 30% from its three-year peak, so there’s good upside ahead if management can maintain this trajectory.
The mean price target of $123.92 implies 30% upside.
Autodesk (ADSK) is a company that provides a broad range of software products for engineering and design. Its design software is viewed as essential infrastructure, and canceling a software license that costs a few thousand dollars does nothing to dodge a tariff, so corporate clients keep renewing. Plus, Autodesk derives most of its revenue from the U.S.
The company closed fiscal 2025 with record-high revenue of $6.13 billion, up 12%. That was followed up by 15% year-over-year growth in Q1 of its fiscal 2026.