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Software Stocks Are Sinking In 2026, But These 'Fab Five' Are Up 30% — And BofA Says They're Just Getting Started

Benzinga·
Software Stocks Are Sinking In 2026, But These 'Fab Five' Are Up 30% — And BofA Says They're Just Getting Started

Bank of America identifies five enterprise software stocks—Datadog, JFrog, MongoDB, Snowflake, and Twilio—as outperformers in 2026, collectively up 30% while the broader software sector declines 12%. The analyst attributes their strength to solid execution, AI exposure, and differentiated products, with AI-related revenue growing over 100% at Datadog and strong adoption across all five companies. BofA maintains Buy ratings on all five, expecting the gap between these winners and struggling peers to widen.

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