Bernstein: Software Crowding Rebounds, Still Below Long-Term Historical Levels

深潮 TechFlow reported, citing 潮向研究, that Bernstein noted in an Oct. 28, 2026 research report that software sector crowding in the third quarter improved from July but remained notably below historical levels over the past 25 years. As of Oct. 19, among covered companies, Snowflake's standardized relative crowding score was 2.13, Datadog's was 1.80, Oracle's was -0.37, and HubSpot's was -1.55.

Bernstein believes that capital inflows have been concentrated mainly in application platforms with stable or reaccelerating revenue, as well as usage-based software driven by growth in AI workloads. The report is bullish on the business staying power of some enterprise platforms, but remains concerned about growth and valuation divergence for popular companies. Its stock-picking approach focuses on operational improvements, AI monetization capability, and the gap between market sentiment and fundamentals.

Source: 深潮 TechFlow