3 Beaten-Down Tech Stocks That Could Soar 33% or More, According to Wall Street

Written by Keith Speights for The Motley Fool->

Anthropic's entrance into the design market has sparked concerns about Figma.

ServiceNow is a victim of the "SaaSpocalypse."

MongoDB's lower-than-expected guidance worried some investors.

With the stock market setting record highs, is the old saying that "a rising tide lifts all boats" holding? Nope. Quite a few tech stocks have plunged this year.

However, analysts think that the steep declines don't reflect companies' long-term prospects, in some cases. Here are three beaten-down tech stocks that could soar 33% or more, according to Wall Street.

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Figma (NYSE: FIG) dominates the collaborative design software market. The company's products are used by a "who's who" in the technology world, including Atlassian (NASDAQ: TEAM), Duolingo (NASDAQ: DUOL), Microsoft (NASDAQ: MSFT), Netflix (NASDAQ: NFLX), and Zoom (NASDAQ: ZM).

The stock plunged 68% in 2025. It's down another 49% so far this year. What's happening with Figma? One issue is that the company went public in July 2025 at an exorbitant valuation. Historically, such IPO stocks have often declined sharply after the hype wears off. Anthropic's entrance into the design market with its Claude Design product has also sparked concerns about a serious threat to Figma's business.

However, Wall Street seems to think the sell-off was overdone. The average 12-month price target for Figma is roughly 114% above the current share price. What do analysts see that many investors don't?

Figma continues to deliver exceptionally strong growth. The company's revenue soared 40% year over year in the fourth quarter of 2025. Its net dollar retention rate is a sky-high 136%. And while competition from Anthropic could be worrisome, Figma's tight integration with Claude Code could prevent designers from jumping ship.

ServiceNow (NYSE: NOW) markets a cloud-based platform that automates digital workflow across enterprises. More than 95 billion workflows run on its software each year. ServiceNow's customer base includes more than 8,800 organizations worldwide -- and over 85% of the Fortune 100.

As with Figma, ServiceNow's slump began last year and intensified in 2026. The stock has plummeted more than 40% year to date. The recent decline is a direct result of a sell-off of SaaS stocks so severe that it was given the nickname "SaaSpocalypse." Investors dumped shares of software companies amid fears that AI would disrupt their businesses.

Wall Street views the meltdown as an opportunity to buy ServiceNow. The average price target for the stock reflects a potential upside of more than 60%. Of the 48 analysts surveyed by S&P Global (NYSE: SPGI), 43 rated ServiceNow as a "buy" or "strong buy."

Analysts seem to agree with ServiceNow CEO Bill McDermott about the impact of AI on the company. McDermott doesn't see AI as a threat. Instead, he said in the company's Q1earnings call "There has never been a tailwind for ServiceNow like AI."

MongoDB (NASDAQ: MDB) makes databases for today's technological landscape. Its Atlas cloud-based database is especially popular. More than 60,000 customers use MongoDB's products, including around three-fourths of the Fortune 100.

While MongoDB's name stems from the word "humongous," its stock performance hasn't lived up to its name in 2026. MongoDB's shares soared 80% last year but are down around 37% over the last four months. Investors were concerned after the company provided weaker-than-expected revenue guidance in its March quarterly update.

Analysts don't appear to be worried about MongoDB, though. The consensus 12-month price target is 33% higher than the current share price. Thirty of the 39 analysts surveyed by S&P Global rated MongoDB as a "buy" or "strong buy."

MongoDB's fundamentals remain strong. Even with growth rates slowing somewhat, the company's long-term prospects look bright. The database market is growing, with AI expanding the opportunity.

I don't know if Figma, ServiceNow, and MongoDB will hit analysts' price targets over the next 12 months. However, I do think that Wall Street is right to be generally optimistic about all three tech stocks.

Figma is the biggest question mark to me. Although the company should remain highly successful, I'd like to see whether Claude Design significantly impacts its business. I don't have reservations about ServiceNow and MongoDB, though. Both stocks appear to be good buys on the steep pullbacks.

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Keith Speights has positions in Microsoft. The Motley Fool has positions in and recommends Atlassian, Duolingo, Figma, Microsoft, MongoDB, Netflix, S&P Global, ServiceNow, and Zoom Communications. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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