Key Takeaways
- Institutional investors reduced technology holdings at the most aggressive rate in a decade, Goldman Sachs reports
- Major tech giants experienced net selling in four out of five recent trading days
- Figma shares have plummeted 49% year-to-date, pressured by competitive threats from Anthropic’s Claude Design
- ServiceNow stock declined more than 40% this year as SaaS sector concerns intensify
- MongoDB tumbled 37% over four months following disappointing revenue projections, though Street sentiment stays positive
Institutional investors have executed their most aggressive retreat from technology equities in ten years, based on fresh data from Goldman Sachs’ Prime Book. The two-week exodus involved both position liquidations and short position closures.
Vincent Lin, an analyst at Goldman Sachs, noted that this magnitude of de-risking hasn’t been observed over the last decade, with the exception of the meme stock phenomenon in early 2021.
The selling pressure hit multiple tech subsectors particularly hard, including semiconductors, hardware manufacturers, storage solutions, and software companies. The elite group of Magnificent Seven stocks — featuring industry leaders such as Apple, Nvidia, and Microsoft — experienced net outflows during four of the past five trading sessions.
Battered Tech Names Drawing Analyst Interest
Even as institutional money managers retreated, several Wall Street analysts have identified oversold technology companies as compelling investment opportunities. Figma, ServiceNow, and MongoDB represent three names where analysts project potential gains of 33% or higher.
Figma made its public market debut in July 2025 with an elevated valuation and has faced ongoing challenges. The company’s shares crashed 68% throughout 2025 and have continued sliding another 49% in the current year. The situation intensified when Anthropic introduced Claude Design, a direct challenger to Figma’s primary product offerings.
Neverthstanding these headwinds, Figma posted impressive fourth-quarter 2025 revenue expansion of 40% on a year-over-year basis. The company maintains a robust net dollar retention rate of 136%. Analyst consensus suggests the stock could rally approximately 114% from present trading levels.
ServiceNow delivers cloud-based workflow automation solutions to more than 8,800 enterprise clients, including over 85% of Fortune 100 companies. The company’s equity has surrendered over 40% of its value year-to-date.
This decline materialized as part of a widespread software-as-a-service sector downturn that market participants have dubbed the “SaaSpocalypse.” Concerns that artificial intelligence technologies would disrupt traditional software business models fueled the selloff.
Wall Street’s Perspective
Among 48 analysts tracked by S&P Global, 43 maintain “buy” or “strong buy” recommendations on ServiceNow. The average analyst price objective implies potential appreciation exceeding 60% from current valuation levels.
ServiceNow CEO Bill McDermott has rejected the notion that AI represents an existential threat. 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 clients, including approximately three-quarters of Fortune 100 enterprises. The stock rallied 80% throughout 2025 but has retreated roughly 37% over the past four months.
The correction followed MongoDB’s March announcement of revenue guidance that fell short of market expectations. Nevertheless, 30 out of 39 analysts surveyed by S&P Global maintain “buy” or “strong buy” ratings on the company.
The median 12-month price target for MongoDB indicates 33% upside potential from current market prices.
MongoDB operates with a gross margin of 71.31%, and the overall database industry maintains steady expansion, with artificial intelligence anticipated to serve as an additional catalyst for future demand.
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