Key Takeaways
- Goldman Sachs data shows hedge funds dumped tech holdings at their fastest velocity in a decade
- Four out of five recent sessions saw net selling in Magnificent Seven stocks
- Figma shares plummeted 49% this year following Anthropic’s competitive Claude Design launch
- ServiceNow stock declined more than 40% year-to-date during the SaaS sector downturn
- MongoDB tumbled 37% across four months following disappointing guidance, yet Wall Street stays optimistic
According to fresh data from Goldman Sachs’ Prime Book, hedge fund managers have executed their most aggressive retreat from technology equities in ten years. This two-week liquidation event combined both long position exits and short position covering.
Vincent Lin, an analyst at Goldman Sachs, noted that this magnitude of risk reduction hasn’t been observed over the past decade, with the exception of the meme stock frenzy in early 2021.
The selloff concentrated heavily in semiconductors, technology hardware, storage solutions, and software companies. Notable casualties included the Magnificent Seven—a group featuring tech giants such as Apple, Nvidia, and Microsoft—which experienced net selling across four of the previous five trading days.
Three Battered Tech Names Drawing Analyst Attention
Even as institutional investors fled, several Wall Street analysts are highlighting deeply discounted technology stocks as compelling entry points. Figma, ServiceNow, and MongoDB represent three companies that analysts believe could surge 33% or higher.
Figma’s public market debut in July 2025 came at a premium valuation, but performance has disappointed shareholders since. The stock collapsed 68% throughout 2025 and has shed an additional 49% in the current year. Market pressure intensified after Anthropic unveiled Claude Design, a direct competitor targeting Figma’s primary market.
Nevertheless, Figma posted impressive fundamentals with fourth-quarter 2025 revenue climbing 40% year-over-year. The company maintains a robust net dollar retention rate of 136%. Wall Street’s consensus price target suggests approximately 114% appreciation potential from present levels.
ServiceNow delivers cloud-powered workflow automation solutions to more than 8,800 enterprises, counting over 85% of Fortune 100 companies among its clientele. The stock has cratered more than 40% since the year began.
This decline occurred alongside a sweeping SaaS industry rout that market participants have dubbed the “SaaSpocalypse.” Concerns about artificial intelligence disrupting traditional software business models fueled the widespread selling.
Wall Street’s Take on Recovery Prospects
Among 48 analysts tracked by S&P Global, an overwhelming 43 assigned ServiceNow either a “buy” or “strong buy” rating. Their average price projection indicates potential gains exceeding 60% from current trading levels.
ServiceNow’s CEO Bill McDermott has vigorously rejected suggestions that AI poses an existential threat. During the company’s first-quarter earnings conference, he stated, “There has never been a tailwind for ServiceNow like AI.”
MongoDB develops database technology serving over 60,000 clients worldwide, including approximately 75% of Fortune 100 enterprises. After rallying 80% during 2025, shares have retreated roughly 37% over the past four months.
The downturn followed MongoDB’s March announcement of below-consensus revenue projections. Despite this setback, 30 out of 39 analysts polled by S&P Global maintain “buy” or “strong buy” recommendations.
The median 12-month price forecast for MongoDB implies 33% upside from its current trading price.
MongoDB operates with a gross margin of 71.31%, while the overall database sector continues expanding, with artificial intelligence expected to accelerate demand further.
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