The software rally has been uneven. Some AI-adjacent and market-favorite names have rerated strongly, but there remains a group of profitable, growing software companies that have not participated in the advance. Analysts collectively see between roughly 30% and 73% upside for several of these names, even as many report notable revenue growth.
The most prominent disconnect is AppLovin (APP). The stock is down 52.8% year-to-date even though revenue growth has been reported at 60.6% and the consensus analyst target implies 73.1% upside. That gap illustrates the broader theme: companies growing revenue substantially but still trading at depressed prices.
Snapshot table - the following values reflect consensus figures reported for each company; snapshot values may lag live prices:
| Company | YTD Return | Revenue Growth | P/E (Fwd) | PEG | Analyst Upside | Fair Value Upside |
|---|---|---|---|---|---|---|
| AppLovin (APP) | -52.8% | 60.6% | 18.7x | 0.28 | 73.1% | 33.3% |
| Bilibili (BILI) | -32.5% | 6.9% | 15.0x | 0.05 | 66.4% | 29.6% |
| Grab Holdings (GRAB) | -27.7% | 21.5% | 25.4x | 0.05 | 63.4% | 21.4% |
| Oracle (ORCL) | -21.9% | 17.3% | 18.1x | 0.75 | 59.4% | 27.6% |
| Diebold Nixdorf (DBD) | -0.8% | 5.4% | 12.0x | 0.02 | 48.5% | 27.5% |
| Reddit (RDDT) | -33.4% | 66.6% | 18.8x | 0.13 | 38.9% | 35.5% |
| Tencent Music (TME) | -49.9% | 12.1% | 9.3x | — | 35.9% | 42.4% |
| Fair Isaac (FICO) | -31.8% | 24.1% | 25.1x | 0.88 | 32.6% | 10.4% |
| PDD Holdings (PDD) | -24.4% | 10.0% | 8.0x | — | 33.5% | 34.7% |
| Meta Platforms (META) | -12.3% | 27.7% | 18.2x | — | 29.8% | 9.0% |
Revenue acceleration that the market is overlooking
Several names on the list show accelerating top-line momentum but their stock performance has not reflected that improvement. The divergence is particularly clear where revenue growth is robust yet the shares trade at depressed multiples or remain materially lower year-to-date.
Three buckets of opportunity identified
- Deep value / biggest gap - AppLovin (APP) stands out. Revenue nearly tripled from $1.84B (2023) to $5.48B (2025), while the stock is down more than 50% year-to-date and the consensus PEG sits at 0.28. Tencent Music (TME) is comparable on valuation, with revenue reported as having doubled to $2.2B and a PEG of 0.13.
- Quality laggards - Oracle (ORCL) has reaccelerated to 17.3% revenue growth, up from roughly 6% two years earlier, supported by cloud momentum, yet it trades around 18x forward earnings and shows about 59% analyst upside. Meta Platforms (META) is also noted as growing near 22% with an 18x forward multiple, a cheaper valuation relative to its own historical norms.
- Cheap and growing - Tencent Music (TME) at roughly 9.3x forward earnings with a fair value upside near 42.4%, and Diebold Nixdorf (DBD) at 12x forward and a PEG of 0.02, represent the lower end of the valuation spectrum for this group.
Possible catalysts for rerating
The companies in this cohort share one common element: fundamentals that have improved but market sentiment has not fully adjusted. Potential triggers that could prompt a rerating include upcoming earnings beats, updates on AI-related monetization efforts, or a broader rotation into cheaper software names as the market rally widens. At the same time, there are clear reasons some names may remain discounted, including China exposure, regulatory uncertainty, or genuine deceleration risks.
Note: Snapshot values and percentages reflect available consensus data and may lag real-time market levels.