Key Takeaways
- Technology stocks experienced their fastest hedge fund liquidation in a decade, according to Goldman Sachs data
- Magnificent Seven companies faced net selling during four out of five recent trading days
- Figma shares have plummeted 49% in 2026 following competitive pressure from Anthropic’s Claude Design
- ServiceNow stock declined more than 40% this year during the broader SaaS market downturn
- MongoDB shares fell 37% over four months following conservative revenue projections, though Wall Street maintains optimistic outlook
Institutional investors have executed their most aggressive technology sector retreat in ten years, based on fresh analysis from Goldman Sachs’ Prime Book. The two-week liquidation wave combined both long position exits and short position closures.
Vincent Lin, an analyst at Goldman Sachs, noted that such dramatic risk reduction hasn’t occurred in the previous decade, with the sole exception being the meme stock frenzy of early 2021.
The selloff concentrated heavily in semiconductor companies, technology hardware manufacturers, storage providers, and software developers. Even the Magnificent Seven — a group featuring giants like Apple, Nvidia, and Microsoft — experienced net selling pressure across four of the past five trading sessions.
Three Battered Tech Names Attracting Analyst Attention
As institutional money fled technology stocks, several Wall Street analysts have identified compelling value in severely discounted names. Figma, ServiceNow, and MongoDB stand out as three companies that analysts believe could surge 33% or higher.
Figma’s public market debut in July 2025 came with lofty expectations that quickly soured. The design platform’s shares collapsed 68% throughout 2025 and have surrendered an additional 49% in the current year. Competition intensified when Anthropic introduced Claude Design, a direct rival to Figma’s flagship offering.
Yet beneath the surface turmoil, Figma delivered impressive fourth-quarter 2025 results with 40% year-over-year revenue expansion. The company’s net dollar retention rate reached 136%. Wall Street’s consensus price target suggests approximately 114% potential appreciation from today’s levels.
ServiceNow operates a cloud-based workflow automation platform serving over 8,800 enterprise clients, including more than 85% of Fortune 100 companies. The stock has surrendered over 40% of its value year to date.
This decline occurred alongside a widespread software-as-a-service sector rout that market participants have dubbed the “SaaSpocalypse.” Investor anxiety centered on concerns that artificial intelligence technologies would erode traditional software company profits.
Wall Street Maintains Bullish Stance
Among 48 analysts tracked by S&P Global, 43 assigned ServiceNow either a “buy” or “strong buy” recommendation. The average price projection implies more than 60% appreciation potential from present trading levels.
ServiceNow’s CEO Bill McDermott rejected the notion that AI poses an existential threat to his company. During the Q1 earnings conference call, he stated, “There has never been a tailwind for ServiceNow like AI.”
MongoDB develops database solutions deployed by more than 60,000 clients, including approximately three-quarters of Fortune 100 enterprises. The stock skyrocketed 80% during 2025 before retreating roughly 37% over the subsequent four-month period.
The pullback followed MongoDB’s March announcement of below-consensus revenue expectations. Nevertheless, 30 out of 39 analysts surveyed by S&P Global maintain either a “buy” or “strong buy” rating.
Wall Street’s median 12-month price objective for MongoDB trades 33% above current market prices.
MongoDB maintains a gross margin of 71.31%, while the overall database software market continues expanding, with artificial intelligence applications expected to accelerate demand further.
