US Tech Stocks May Benefit From Lower Inflation Rate Expectations

The US Bureau of Economic Analysis is about to make some changes to its preferred inflation gauge, the PCE index. This could have a subtle impact on how markets think about interest rates.

Some growth-oriented technology stocks may benefit from lower rate expectations, particularly those with long-term earnings stories.

Three US tech stocks that could be positively affected are Agilysys (AGYS), AppFolio (APPF), and Shopify (SHOP).

Agilysys is a hospitality software company that provides cloud-based property management and point-of-sale solutions to hotels, resorts, casinos, and other venues across North America, Europe, Asia-Pacific, and India.

The company generates about $330.3 million in revenue from its software solutions and has recently reported record revenue, recurring sales, and expanding margins.

However, Agilysys trades on a rich multiple, and insiders have been selling shares, which raises concerns about the stock's valuation.

AppFolio provides cloud-based software for US real estate professionals, helping property managers handle accounting, leasing, maintenance, communications, and workflow automation in a single platform.

The company generates around $1.0 billion in revenue from its cloud-based business management software and has recently crossed $1.0 billion in trailing 12-month revenue.

AppFolio's accelerating shift to AI-powered automation looks exciting, but the real story sits in how the growth, margins, and premium P/E come together in analyst forecasts.

Shopify is a commerce technology company that gives merchants a single platform to run their entire business, from online and in-store storefronts to payments, shipping, marketing, analytics, and financing across North America and international markets.

The company generates about $12.4 billion in revenue primarily from its Internet Software & Services segment and has a rich P/E of 127x alongside insider selling, higher funding risk, and a relatively new board.