Altimeter's Brad Gerstner reveals his software investment strategy

Watch on YouTube ↗  |  January 06, 2026 at 18:27  |  4:48  |  CNBC
Speakers
Brad Gerstner — CEO, Altimeter Capital

Summary

Brad Gerstner of Altimeter Capital joins CNBC's Halftime Report to discuss whether AI is killing software. He argues software multiples are at generational lows because AI threatens seat-based subscription models, but not all software is equally at risk. He favors select AI-beneficiary, data-substrate software like Snowflake while avoiding displaced applications, and expects AI beneficiaries to outperform this year.

  • Brad Gerstner says software forward-revenue multiples have fallen to about 4.2x from a 2021 peak near 17x.
  • He attributes the de-rating to fears that AI coding tools can replace licensed seat-based software.
  • He says about 90% of the down software deserved to fall, but 10% were thrown out with the bathwater.
  • He favors AI-durable/data-substrate software, naming Snowflake and privately held Databricks as accelerating holdings.
  • He mentions Samsara as another possible AI-beneficiary software name.
  • He expects AI beneficiaries to see accelerating revenues and reward investors this year.
  • He ends with comments on Invest America/Trump accounts and college football.
Ideas
Brad Gerstner CEO, Altimeter Capital 1:38
Own AI-durable software, avoid displaced software.
Software is at a generational low multiple because AI coding tools threaten seat-based subscription software, but not all software is equal: about 90% of the down software deserves to be down and should be avoided as AI-displaced, while the 10% that were thrown out with the bathwater and are AI beneficiaries/durable should see accelerating, durable revenues and be rewarded. Gerstner says now is the time to selectively look in software and expects these AI beneficiaries to be very good returning stocks this year.
AI-SECTOR HIGH
Brad Gerstner CEO, Altimeter Capital 1:38
Own AI-durable software, avoid displaced software.
Software is at a generational low multiple because AI coding tools threaten seat-based subscription software, but not all software is equal: about 90% of the down software deserves to be down and should be avoided as AI-displaced, while the 10% that were thrown out with the bathwater and are AI beneficiaries/durable should see accelerating, durable revenues and be rewarded. Gerstner says now is the time to selectively look in software and expects these AI beneficiaries to be very good returning stocks this year.
AI-displaced software HIGH
Brad Gerstner CEO, Altimeter Capital 1:56
Snowflake is an AI data-substrate winner.
Snowflake is one of the AI-durable software companies Altimeter owns and loves. It is accelerating because it is the data substrate on which enterprises build agentic AI solutions, with AI-generated applications sitting on top of that substrate. Gerstner names Snowflake among the 10% thrown out with the bathwater and expects it to be a very good returning stock this year.
SNOW HIGH
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This CNBC video, published January 06, 2026, features Brad Gerstner discussing AI-SECTOR, AI-displaced software, SNOW. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Brad Gerstner  · Tickers: AI-SECTOR, AI-displaced software, SNOW