Cramer says the software company acquisition is an upbeat sign for the industry’s stock

CNBC’s Jim Cramer on Wednesday said that software company acquisitions that have taken place in recent weeks suggest that stocks in the sector may be nearing a bottom.

“The long software nightmare may finally be over, though I still encourage you to be selective with these and stick with the things that actually make money,” “Crazy money” said the presenter.

Some recent acquisition news among software companies include:

Software stocks that have skyrocketed during the pandemic have fallen this year after the Federal Reserve began an aggressive campaign to raise interest rates and reduce inflation. Some analysts are bet that pain for software stocks coming to an end.

According to Cramer, recent announcements of takeover bids and deals involving software companies suggest that stocks have become cheap enough to attract potential acquirers and possibly bottom.

“It’s very hard to see where this group might bottom because so many of them are unprofitable, but the fact that private equity is so interested certainly means something,” Cramer said. ‘ said Cramer.

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