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

Core Insights - Three software stocks, Affirm Holdings Inc. (AFRM), AvePoint Inc. (AVPT), and Docebo Inc. (DCBO), are identified as being in the bottom 10% of value percentile rankings, indicating a potential misalignment between their valuations and underlying fundamentals, suggesting they may be poised for correction [1][2][7]. Company Summaries - Affirm Holdings Inc. (AFRM): The company's value percentile dropped significantly from 23.03 to 4.14, a decline of 18.89 percentage points. Despite a year-to-date stock gain of 37.39% and a 124.99% increase over the past year, its valuation appears increasingly difficult to justify without improvements in fundamentals [9]. - AvePoint Inc. (AVPT): This company saw a slight decrease in its value percentile from 10.10 to 5.95, a drop of 4.15 percentage points. The stock is down 0.30% year-to-date but has increased by 40.78% over the year. It maintains a stronger long-term price trend but shows weakness in the short and medium terms [9]. - Docebo Inc. (DCBO): The value percentile for Docebo fell from 10.09 to 6.29, a decrease of 3.8 percentage points. The stock has declined 29.81% year-to-date and 22.05% over the year. It has a moderate growth ranking with a strong price trend in the short and medium terms but a weak long-term trend [9]. Value Percentile Explanation - The value percentile is a comparative ranking metric that ranges from 0 to 100, indicating how a stock's valuation compares to its peers based on financial ratios such as price-to-earnings (P/E) and price-to-book (P/B) [6].