3 Bloated Software Stocks Screaming 'Short Me' At Insane Valuations

Author: Rishabh Mishra | September 09, 2025 07:26am

Three software stocks have landed in the bottom 10% of value percentile rankings this week, suggesting their valuations are out of sync with underlying fundamentals and could be poised for correction.

3 Stocks Ripe For A Correction?

Investors looking to capitalize on overextended valuations or seeking potential short opportunities should take note of the striking week-on-week declines in the value scores of Affirm Holdings Inc. (NASDAQ:AFRM), AvePoint Inc. (NASDAQ:AVPT), and Docebo Inc. (NASDAQ:DCBO).

Affirm Holdings

• AFRM, known for its buy-now, pay-later platform, has suffered a steep value ranking drop. The company's value percentile plummeted from 23.03 last week to only the 4.14th percentile currently—a significant week-on-week decline of 18.89 percentage points.

• The stock has gained 37.39% year-to-date and 124.99% over a year.

• It maintains a stronger price trend over the short, medium, and long terms with a weak value ranking. Additional performance details are available here.

AvePoint

• AVPT, which provides data management solutions for Microsoft Corp.’s (NASDAQ:MSFT) 365, remains deep in the value doldrums. Its value percentile changed little, inching down from an already poor 10.10 last week to the 5.95th percentile now, a drop of 4.15 percentage points.

• Lower by 0.30% in the YTD, the stock was up 40.78% over the year.

• This stock maintained a stronger price trend over the long term but a weak trend in the short and medium terms. Additional performance details are available here.

See Also: These 4 Precious Metals Stocks Outshine As Gold Rallies

Docebo

• DCBO, a cloud-based learning management software vendor, has seen its value percentile slip as well, from the 10.09th to the 6.29th percentile this week, a decrease of 3.8 percentage points.

• The stock declined 29.81% YTD and 22.05% over the year.

• With a moderate growth ranking, it had a strong price trend in the short and medium terms but a weak trend in the long term. Additional performance details are available here.

What Does Value Percentile Entail?

According to Benzinga Edge’s Stock Rankings, value percentile is a comparative ranking metric (from 0 to 100) that shows how a stock's valuation stands relative to its peers, based on specific financial ratios such as price-to-earnings (P/E), price-to-book (P/B), or other measures of value.

The week's value percentile shifts in Affirm Holdings, AvePoint, and Docebo highlight the widening gap between price and financial reality for some software stocks. With all three entrenched in the lowest decile, their current valuations look increasingly difficult to justify without rapid improvements in fundamentals.

Price Action

The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, rose in premarket on Tuesday. The SPY was up 0.10% at $649.51, while the QQQ declined 0.19% to $579.97, according to Benzinga Pro data.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzing

Photo: Shutterstock

Posted In: AFRM AVPT DCBO MSFT QQQ SPY