Key Takeaways
- Goldman Sachs Prime Book data reveals hedge funds reducing tech holdings at the most aggressive pace since 2015
- Net selling of Magnificent Seven stocks occurred during four out of the past five trading days
- Figma shares have declined 49% in 2026, with pressure from Anthropic’s Claude Design competing in its space
- ServiceNow experienced losses exceeding 40% year to date during widespread SaaS sector turmoil
- MongoDB declined 37% over four months following disappointing revenue projections, though Wall Street maintains optimistic outlook
Technology sector positions held by hedge funds have experienced their most substantial reduction in ten years, based on information from Goldman Sachs’ Prime Book. This selling wave unfolded across a two-week period, characterized by long position exits and short position covering.
Vincent Lin, an analyst at Goldman Sachs, noted that this magnitude of risk reduction represents an unprecedented event over the past decade, with the sole exception being the meme stock phenomenon of early 2021.
The heaviest liquidation targeted semiconductors, technology hardware, storage solutions, and software companies. Magnificent Seven equities — encompassing corporations such as Apple, Nvidia, and Microsoft — experienced net selling pressure during four of the most recent five trading sessions.
Technology Giants Experience Sharp Declines
Amid the hedge fund liquidation, several analysts have identified severely discounted technology stocks as compelling investment opportunities. Figma, ServiceNow, and MongoDB represent three equities that Wall Street projects could appreciate 33% or beyond.
Figma completed its public offering in July 2025 at an elevated valuation and has faced challenges ever since. The equity plunged 68% throughout 2025 and has surrendered an additional 49% during the current year. The introduction of Claude Design by Anthropic, which directly challenges Figma’s primary offerings, has intensified the competitive landscape.
Yet Figma’s revenue expanded 40% on a year-over-year basis during Q4 2025. The company maintains a net dollar retention rate of 136%. The consensus analyst price target suggests approximately 114% appreciation potential from present levels.
ServiceNow delivers cloud-based workflow automation solutions to more than 8,800 organizations, serving over 85% of Fortune 100 enterprises. The stock has surrendered more than 40% of its value year to date.
This decline formed part of an extensive SaaS sector downturn that market participants have dubbed the “SaaSpocalypse.” Concerns regarding artificial intelligence’s potential impact on software enterprises fueled the selling pressure.
Wall Street Sentiment Remains Optimistic
Among 48 analysts polled by S&P Global, 43 assigned ServiceNow a “buy” or “strong buy” rating. The consensus price projection indicates upside potential exceeding 60% from current trading levels.
ServiceNow’s CEO Bill McDermott has challenged concerns about AI posing a competitive threat. During the company’s Q1 earnings conference, he stated, “There has never been a tailwind for ServiceNow like AI.”
MongoDB develops database software serving more than 60,000 clients, including approximately three-quarters of Fortune 100 companies. Shares climbed 80% during 2025 before retreating roughly 37% over the past four months.
The downturn followed MongoDB’s announcement of revenue guidance that fell short of market expectations in its March business update. Despite this setback, 30 out of 39 analysts surveyed by S&P Global maintain a “buy” or “strong buy” recommendation.
The median 12-month price objective for MongoDB stands 33% above current share prices.
MongoDB operates with a gross margin of 71.31%, while the broader database software market maintains steady expansion, with artificial intelligence viewed as an additional catalyst for demand growth.
