TLDR
- Hedge funds cut tech stock positions at the fastest pace in 10 years, per Goldman Sachs
- The Magnificent Seven were net sold in four of the last five trading sessions
- Figma is down 49% this year, partly due to Anthropic’s Claude Design entering its market
- ServiceNow has fallen over 40% year to date amid broad SaaS sector fears
- MongoDB dropped 37% in four months after weak revenue guidance, but analysts remain bullish
Hedge funds have made their biggest cuts to technology stock positions in a decade, according to data from Goldman Sachs’ Prime Book. The selling happened over two weeks and was driven by long sales and short covers.
Goldman Sachs analyst Vincent Lin said the scale of risk unwinding has not been seen in the past ten years, except for the meme stock episode in early 2021.
Semiconductors, tech hardware, storage, and software saw the heaviest selling. The Magnificent Seven stocks — which include companies like Apple, Nvidia, and Microsoft — were net sold in four of the last five trading sessions.
Three Tech Stocks Hit Hard
While hedge funds were selling, some analysts are pointing to beaten-down tech names as potential buying opportunities. Figma, ServiceNow, and MongoDB are three stocks Wall Street says could rise 33% or more.
Figma went public in July 2025 at a high valuation and has struggled since. The stock dropped 68% in 2025 and is down another 49% so far this year. Anthropic’s launch of Claude Design, a product that competes directly with Figma’s core business, has added pressure.
Despite that, Figma’s revenue grew 40% year over year in the fourth quarter of 2025. Its net dollar retention rate sits at 136%. The average analyst price target is roughly 114% above the current share price.
ServiceNow provides cloud-based workflow automation to over 8,800 organizations, including more than 85% of the Fortune 100. Its stock has fallen more than 40% year to date.
The drop came as part of a broad SaaS selloff investors have nicknamed the “SaaSpocalypse.” Fears that artificial intelligence would hurt software companies drove the selling.
What Analysts Are Saying
Of 48 analysts surveyed by S&P Global, 43 rated ServiceNow a “buy” or “strong buy.” The average price target points to more than 60% upside from current levels.
ServiceNow CEO Bill McDermott has pushed back on the idea that AI is a threat. On the company’s Q1 earnings call, he said, “There has never been a tailwind for ServiceNow like AI.”
MongoDB makes database software used by more than 60,000 customers, including about three-quarters of the Fortune 100. Shares surged 80% in 2025 but have dropped around 37% in the last four months.
The slide came after MongoDB gave weaker-than-expected revenue guidance in its March update. Still, 30 of 39 analysts surveyed by S&P Global rate it a “buy” or “strong buy.”
The consensus 12-month price target for MongoDB sits 33% above the current share price.
MongoDB’s gross margin stands at 71.31%, and the broader database market continues to grow, with AI seen as an additional driver of demand.
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