Key Takeaways
- Technology stock positions were reduced by hedge funds at their fastest velocity in a decade, according to Goldman Sachs data
- The Magnificent Seven experienced net selling pressure during four out of five recent trading days
- Figma shares have plummeted 49% in 2026, pressured by competition from Anthropic’s Claude Design
- ServiceNow stock has declined more than 40% year to date as SaaS sector anxiety spreads
- MongoDB shed 37% over four months following disappointing revenue projections, though Wall Street maintains optimistic outlook
Institutional investors have executed their most aggressive technology sector exit in ten years, based on information from Goldman Sachs’ Prime Book. The two-week liquidation event combined long position exits with short position closures.
Vincent Lin, an analyst at Goldman Sachs, noted that this magnitude of risk reduction hasn’t occurred over the past decade, with the sole exception being the meme stock phenomenon in early 2021.
The selloff concentrated heavily in semiconductors, technology hardware, storage solutions, and software companies. The Magnificent Seven group — featuring giants like Apple, Nvidia, and Microsoft — experienced net selling during four of the past five sessions.
Wall Street Eyes Opportunities in Three Battered Tech Names
Amid the institutional exodus, several analysts are highlighting severely discounted technology stocks as compelling investment prospects. Figma, ServiceNow, and MongoDB represent three companies that Wall Street believes could deliver returns of 33% or higher.
Figma’s public debut in July 2025 came with lofty expectations that haven’t materialized. The design platform witnessed a 68% decline throughout 2025 and has surrendered an additional 49% in the current year. Competition intensified when Anthropic introduced Claude Design, a direct rival to Figma’s primary offerings.
Nevertheless, Figma delivered impressive fundamentals with 40% year-over-year revenue expansion in Q4 2025. The company’s net dollar retention metric stands at an impressive 136%. Wall Street’s consensus price target suggests approximately 114% appreciation potential from present levels.
ServiceNow delivers cloud-based workflow automation solutions to more than 8,800 enterprises, capturing over 85% of the Fortune 100 as clients. The company’s shares have surrendered over 40% of their value year to date.
This decline occurred alongside a broader software-as-a-service sector rout that market participants have dubbed the “SaaSpocalypse.” Concerns that artificial intelligence would disrupt traditional software business models fueled the widespread selling.
Analyst Sentiment Remains Bullish
Among 48 analysts tracked by S&P Global, 43 assigned ServiceNow either a “buy” or “strong buy” recommendation. The average price target indicates potential upside exceeding 60% from current trading levels.
ServiceNow CEO Bill McDermott has rejected the narrative that AI poses a threat to the business. During the company’s Q1 earnings call, he stated, “There has never been a tailwind for ServiceNow like AI.”
MongoDB develops database technology deployed by more than 60,000 customers, including approximately three-quarters of Fortune 100 companies. The stock rallied 80% throughout 2025 before retreating roughly 37% over the subsequent four-month period.
The correction followed MongoDB’s March guidance update, which fell short of revenue expectations. Despite this setback, 30 out of 39 analysts surveyed by S&P Global maintain “buy” or “strong buy” ratings on the stock.
The 12-month consensus price target for MongoDB implies 33% upside from current valuation levels.
MongoDB maintains a robust gross margin of 71.31%, while the overall database market continues expanding. Artificial intelligence is viewed as an additional catalyst that could accelerate demand growth in this segment.
