In this article, we highlight the 10 Best Beaten Down Technology Stocks to Buy According to Hedge Funds.
A fourth year of substantial gains has finally caught up with investors on Wall Street. While technology stocks have been the main drivers, growing concerns over the sustainability of heavy spending on AI computing threaten the bull run heading into the new year. Steep corrections have already come into play, with some technology stocks shedding more than 30% of their market value in 2025.
Even with these sharp declines, some tech stocks have reached new highs thanks to renewed excitement about artificial intelligence. Optimism about AI and a strong US economy, helped by easier monetary policy, is keeping investors interested in tech stocks despite some recent sell-offs.
“You had a pretty swift pullback in many names and now all of a sudden, that’s being viewed as a buying opportunity and that trend is going to continue because you have really strong earnings,” said Hank Smith, director and head of investment strategy at Haverford Trust.
BlackRock Advisor Institute predicts strong gains for technology stocks in 2026, with AI-related spending expected to average between $5 and $8 trillion. While AI chips will stay important, Morgan Stanley warns that growth may not be as steady as it has been in recent years.
Away from AI chips, Morgan Stanley believes data center connectivity, memory, equipment manufacturing, and analog chips will be the top sectors in tech in 2026.
Our Methodology
To list the 10 Best Beaten Down Technology Stocks to Buy According to Hedge Funds, we used the Finviz stock screener to identify Technology companies trading within 0%–10% of their 52-week lows and showing a year-to-date loss of more than 30%. Elite hedge funds also favor these stocks and offer upside potential of over 20%. We then ranked them in ascending order based on the number of hedge funds holding positions as of Q3 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research shows we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Best Beaten Down Technology Stocks to Buy According to Hedge Funds
10. MNTN Inc. (NYSE:MNTN)
52-Week Range: $11.46 – $32.49
Share price as of December 24: $11.77
Upside Potential: 75.71%
Year to date Loss: 49.11%
Number of Hedge Fund Holders: 16
MNTN Inc. (NYSE:MNTN) is one of the best beaten-down technology stocks to buy according to hedge funds. On December 4, analysts at Canaccord Genuity reiterated a Buy rating and a $20 price target on MNTN Inc. (NYSE:MNTN).
According to the research firm, MNTN boasts of a strong position in the growing connected TV CTV advertising market. The company’s outlook remains strong, as the connected TV market is increasingly replacing traditional television.
Cannaccord Genuity expects CTV to account for just fewer than 10% of total US media spend while representing 20% of consumption next year. The fact that MNTN specializes in performance-oriented CTV campaigns while leveraging AI-driven creative tools positions it to take advantage of emerging opportunities. It is increasingly serving small and medium-sized businesses by enabling them to run measurable television advertising campaigns.
The research firm expects the company to benefit from industry trends and gain market share by addressing specific market needs. The company has already integrated with the marketing measurement platform Northbeam, which allows marketers to track how TV campaigns perform.
MNTN Inc. (NYSE:MNTN) is a software company that specializes in “Performance TV,” making Connected TV (CTV) advertising as easy and measurable as search and social media. Its self-serve platform helps brands use streaming TV ads to drive tangible results, such as website visits and sales, with features including smart audience targeting, real-time optimization, and conversion tracking.
9. Similarweb Ltd (NYSE:SMWB)
52-Week Range: $6.36 – $17.64
Share price as of December 24: $7.05
Upside Potential: 79.08%
Year to date Loss: 49.61%
Number of Hedge Fund Holders: 17
Similarweb Ltd (NYSE:SMWB) is one of the best beaten-down technology stocks to buy according to hedge funds. On December 15, analysts at Citizens reiterated a Market Outperform rating on Similarweb Ltd (NYSE:SMWB) and maintained a $17 price target.
The research firm remains optimistic about the company’s outlook, impressed by its leading digital intelligence product suite, complemented by GenAI Intelligence and data-selling capabilities for large language models. Likewise, it has touted the company’s long-term prospects while targeting a large total addressable market of $55 billion.
Nevertheless, Citizens’ analysts have also raised concerns over longer sales cycles as the industry transitions from search engine optimization to generative engine optimization. The company could also come under pressure owing to possible spending adjustments by enterprise accounts following Adobe’s pending acquisition of Semrush.
On the other hand, analysts at Oppenheimer reiterated an Outperform rating on the stock but cut the price target to $10 from $12 on December 17. The price target adjustment is in response to demand volatility, artificial intelligence tailwinds, leadership changes, competitive dynamics, and margin trajectory. Amid the challenges, management projects 200-300 basis points of EBIT margin expansion in fiscal 2026 on internal sales improvements, boosting execution and retention. Research and development and G&A expenses are also expected to stabilize.
Similarweb Ltd (NYSE:SMWB) provides a digital intelligence platform that offers data and analytics to help businesses understand online behavior, benchmark against competitors, and optimize digital strategies for growth in marketing, sales, and market research. Its tools analyze website traffic, app usage, consumer behavior, and marketing performance, providing insights into market trends and competitor strategies to support better decision-making.
8. Insight Enterprises, Inc. (NASDAQ:NSIT)
52-Week Range: $77.10 – $181.92
Share price as of December 24: $81.01
Upside Potential: 30.34%
Year to date Loss: 46.92%
Number of Hedge Fund Holders: 19
Insight Enterprises Inc. (NASDAQ:NSIT) is one of the best beaten-down technology stocks to buy according to hedge funds. On December 19, Insight Enterprises Inc. (NASDAQ:NSIT) amended its asset-based lending credit agreement by entering into an amendment with JPMorgan and other syndicate lenders.
The amendment increased the company’s credit facility from $1.8 billion to $2 billion, with $1.65 billion available to US borrowers and $350 million available in multiple currencies. The company also successfully extended the facility’s maturity to December 19, 2030, which is expected to offer flexibility in the sale of receivables.
The expanded credit facility strengthens the company’s liquidity, extends its funding runway, and enhances its financial flexibility to finance operations and support international growth. Meanwhile, on December 17, the company’s board approved a $299 million stock repurchase program. The new program includes $149 million carried over from the prior repurchase authorization.
Cannaccord analyst Luke Morrison initiated coverage of the stock with a Hold rating and a $100 price target on November 19. The stock has a consensus Hold rating from three Wall Street analysts. The average price target on the stock is $103.33, implying 29.53% upside potential from current levels.
Insight Enterprises, Inc. (NASDAQ:NSIT) is a global IT solutions provider that helps businesses digitally transform by offering hardware, software, and services such as cloud, data/AI, cybersecurity, and managed IT.
7. SoundHound AI, Inc. (NASDAQ:SOUN)
52-Week Range: $6.52 – $24.98
Share price as of December 24: $10.90
Upside Potential: 53.77%
Year to date Loss: 44.10%
Number of Hedge Fund Holders: 22
SoundHound AI Inc. (NASDAQ:SOUN) is one of the best beaten-down technology stocks to buy according to hedge funds. On December 12, Cantor Fitzgerald upgraded SoundHound AI Inc. (NASDAQ:SOUN) to an Overweight from Neutral and raised the price target to $15 from $13.
The upgrade is in response to what Cantor Fitzgerald touts as “very well” execution by the company in cross-selling and upselling voice and conversational AI services. The research firm has also echoed the company’s expanded automated voice volumes following the acquisition of Amelia last year. Cantor Fitzgerald sees voice AI as a meaningful beneficiary of secular AI growth trends and expects the company to capitalize on the emerging trends.
Similarly, on December 10, SoundHound AI inked a strategic partnership with OpenTable to launch an in-vehicle voice AI stream. The system will allow drivers to make restaurant reservations through voice commands.
“This collaboration marks another milestone in our mission to bring voice-enabled transactions into the vehicle,” said Michael Zagorsek, COO of SoundHound AI. “Integrating OpenTable into our voice commerce platform broadly expands the ways drivers can plan their dining experiences, making them effortless, intuitive, and hands-free.”
Cantor Fitzgerald expects the recent acquisition of Interactions to be a key organic growth driver, complemented by an expanding partner ecosystem.
SoundHound AI, Inc. (NASDAQ:SOUN) provides voice and conversational intelligence technology, enabling businesses to create AI agents and voice assistants for customer service, automation, and product interaction. It offers platforms like Amelia for enterprise AI and helps brands voice-enable their services with speed, accuracy, and brand control.
6. Tenable Holdings, Inc. (NASDAQ:TENB)
52-Week Range: $23.97 – $45.44
Share price as of December 24: $24.17
Upside Potential: 55.93%
Year to date Loss: 36.39%
Number of Hedge Fund Holders: 32
Tenable Holdings, Inc. (NASDAQ:TENB) is one of the best beaten-down technology stocks to buy according to hedge funds. On December 16, Stifel reiterated a Hold rating and a $35 price target on Tenable Holdings Inc. (NASDAQ:TENB).
The cautious outlook comes on the research firm adjusting its cash flow projections due to the company changing its billing practices. The research firm has lowered its cash flow from operations and free cash flow expectations for Tenable Holdings, based on the third quarter 2025 earnings and statements.
The adjustments follow the company’s move to shift to annual billing from multi-year deals. Initially, it collected upfront payments but was forced to change because customers preferred paying for multiyear deals annually, given the higher interest rate environment. The changes have impacted the company’s Calculated Current Billings and cash flow, but not its Remaining Performance Obligations (RPO).
Meanwhile, on November 11, Tenable entered into a OneGov agreement with the US General Services Administration to provide its FedRAMP-authorized Cloud Security solution to federal agencies. The company is offering the solution at a discount through March 31, 2027, allowing government agencies to access its Cloud Native Application Protection Platform, which provides visibility across cloud infrastructure, identities, and workloads.
Tenable Holdings, Inc. (NASDAQ:TENB) is a cybersecurity company that provides exposure management solutions, helping organizations find, prioritize, and fix vulnerabilities across their IT, cloud, and operational technology (OT) environments using its AI-powered Tenable One platform.
5. SentinelOne, Inc. (NYSE:S)
52-Week Range: $14.43 – $25.24
Share price as of December 24: $14.85
Upside Potential: 42.40%
Year to date Loss: 34.74%
Number of Hedge Fund Holders: 42
SentinelOne (NYSE:S) is one of the best beaten-down technology stocks to buy according to hedge funds. On December 15, Citizens reiterated its Market Outperform rating on SentinelOne Inc. (NYSE:S) with a $23 price target. The firm acknowledged challenges such as limited scale versus peers and slower top-line growth, but highlighted that SentinelOne trades at a CY26E EV/revenue multiple of 3.7x compared to the peer median of 11.1x. Citizens see the valuation discount as justified yet still offering meaningful room for appreciation, reinforcing confidence in the company’s long-term potential despite competitive pressures in the cybersecurity space.
On December 11, Citron Research touted SentinelOne (NYSE:S) cybersecurity capabilities as it uncovered a primary Chinese hacking operation. The company’s researchers successfully traced two Chinese state attackers behind the Salt Typhoon hack. It was the largest telecom breach that the researchers were able to bring to light. The milestone underscored the company’s transformation from an endpoint vendor to a full, native artificial intelligence security platform.
The company’s third-quarter bookings, which accounted for over 50% of total bookings and came from Cloud Data and artificial intelligence offerings, were clear evidence of its evolution. Amid the milestones, the stock continues to trade at approximately 5 times revenue, which is considered quite low. Citron Research expects the stock to rerate higher, as it appears to be trading at a discount given its expanded capabilities and strategic market position.
SentinelOne’s competitive edge has received a significant boost, bolstered by its Purple AI technology, which offers capabilities such as natural language queries, automated alert triage, and integration with third-party security products.
SentinelOne, Inc. (NYSE:S) is an AI-powered cybersecurity company that provides autonomous protection for endpoints, cloud workloads, containers, and identities using its Singularity Platform, stopping threats like ransomware in real-time with machine speed through behavioral analysis.
4. Strategy Inc. (NASDAQ:MSTR)
52-Week Range: $155.10 – $457.22
Share price as of December 24: $158.71
Upside Potential: 196.27%
Year to date Loss: 45.06%
Number of Hedge Fund Holders: 43
Strategy Inc. (NASDAQ:MSTR) is one of the best beaten-down technology stocks to buy according to hedge funds. On December 22, analysts at Citi reiterated a Buy rating on Strategy Inc. (NASDAQ:MSTR) but cut the price target to $325 from $485.
The price target cut comes on the heels of the research firm updating valuation multiples in its digital assets group. Despite the price target cut, the firm remains optimistic about the sector’s long-term outlook. Likewise, it has echoed legislative reform expected to catalyze the industry’s stocks.
On December 16, S&P Global Ratings affirmed Strategy Inc. at ‘B-’ with a stable outlook, noting the company’s new U.S. dollar reserve as a credit positive. The reserve helps cover preferred dividends and coupon payments for 12–24 months, reducing liquidity risk during periods of limited market access and delaying any need to sell bitcoin.
On the other hand, between December 8 and December 14, Strategy sold 163,306 shares of its 10% Series A Perpetual Strife Preferred Stock. It generated $16.3 million in notional value and $18 million in net proceeds after sales commissions. The company also sold 1.03 million shares of 10% Series A Perpetual Stride Preferred Stock (NASDAQ:STRD), with a notional value of $102.9 million and net proceeds of $82.2 million.
During the week, Strategy also acquired 10,645 Bitcoins at an aggregate price of $980.3 million at an average price of $92,098 per Bitcoin. As of December 14, 2025, the company held 671,268 Bitcoin valued at about $50.33 billion.
Strategy Inc. (NASDAQ:MSTR) is a leading Bitcoin treasury company that accumulates Bitcoin on its balance sheet. It also provides AI-powered enterprise analytics software for data analysis, visualization, and business intelligence to global customers in sectors like retail, finance, and healthcare, aiming to help businesses make data-driven decisions.
3. Shift4 Payments Inc. (NYSE:FOUR)
52-Week Range: $61.23 – $127.50
Share price as of December 24: $65.10
Upside Potential: 46.84%
Year to date Loss: 40.90%
Number of Hedge Fund Holders: 45
Shift4 Payments Inc. (NYSE:FOUR) is one of the best beaten-down technology stocks to buy according to hedge funds. On December 18, DA Davidson reiterated a Buy rating and a $104 price target on Shift4 Payments Inc. (NYSE:FOUR). The positive stance is in response to confirmation that the company’s founder and Chairman is poised to join NASA as the next Administrator.
Jared Isaacman is to lead the National Aeronautics and Space Administration. He has already resigned from his position as executive chairman of Shift4’s board of directors. Taylor Lauber will take over as chairman of the board.
The management reorganization comes on the heels of Shift4 Payments announcing the completion of a $507 million equivalent senior notes issuance due in 2033. The company is to use net proceeds from the offering to finance general corporate purposes, including repaying debt and pursuing strategic acquisitions.
Shift4 Payments has already entered into a strategic partnership with Liberty Sports Group to provide integrated payment technology across its sports and entertainment venues in the US. The collaboration paves the way for the company to implement point-of-sale solutions and payment processing.
Shift4 Payments Inc. (NYSE:FOUR) is a technology company that provides an end-to-end commerce ecosystem, offering payment processing and technology solutions for businesses, including mobile payments, point-of-sale (POS) systems (such as SkyTab), e-commerce, and business intelligence tools.
2. GoDaddy Inc. (NYSE:GDDY)
52-Week Range: $121.94 – $216.00
Share price as of December 24: $126.75
Upside Potential: 33.82%
Year to date Loss: 36.04%
Number of Hedge Fund Holders: 49
GoDaddy Inc. (NYSE:GDDY) is one of the best beaten-down technology stocks to buy, according to hedge funds. On December 18, GoDaddy Inc. (NYSE:GDDY) unveiled a new Agent Name Service (ANS) Marketplace. ANS is a new marketplace for verified AI agents that ensure the highest level of trust and security in the growing AI ecosystem.
The marketplaces showcase a variety of AI agents, including Brand Advisor, Home Page Advisor, and Social Media Post Generator, designed to perform various business-related tasks. It also comes with AI agents generated from WordPress WooCommerce stores hosted on GoDaddy’s platform, designed to assist in customer inquiries and product information.
ANS is also designed to keep the internet and people from rogue artificial intelligence agents, as it pairs human-readable names with cryptographically verifiable identities so that agents can be discovered.
“ANS is about making AI agents as discoverable and trustworthy as domains and websites,” said Travis Muhlestein, GoDaddy chief technology officer for product & AI. “With the ANS Marketplace, we’re showing people what trusted agents can do and giving a clear, ANS-backed standard for what ‘trustworthy agents’ actually means.”
The unveiling of the AI agents marketplace comes on the heels of RBC Capital reiterating its Outperform rating and $200 price target. The positive stance is in response to the company’s development of AI offerings spearheaded by Airo capabilities.
On December 4, Benchmark reaffirmed its Buy rating and $240 price target on GoDaddy Inc. after the company’s Investor Dinner, citing stronger confidence in its competitive position, agentic ecosystem, and AI economics. The firm highlighted GoDaddy’s two-year investment in its Data Platform, serving 21 million customers, as a driver of future revenue and efficiency gains, noting that this strategy remains underappreciated by the market. Management also confirmed that the Airo.ai product is in final testing and set to exit beta soon, with monetization expected to begin immediately thereafter.
GoDaddy Inc. (NYSE:GDDY) is a leading global provider of domain registration and web hosting, offering an all-in-one platform for small businesses and individuals to build, grow, and manage their online presence with tools for websites, marketing, security, and e-commerce, all supported by expert guidance.
1. Duolingo, Inc. (NASDAQ:DUOL)
52-Week Range: $166.27 – $544.93
Share price as of December 24: $180.69
Upside Potential: 46.69%
Year to date Loss: 44.55%
Number of Hedge Fund Holders: 50
Duolingo, Inc. (NASDAQ:DUOL) is one of the best beaten-down technology stocks to buy according to hedge funds. On December 18, J.P. Morgan analyst Bryan Smilek reaffirmed a Buy rating on Duolingo, Inc. (NASDAQ:DUOL) with a $300 price target, signaling confidence in the company’s long-term growth prospects.
Earlier, on December 3, DA Davidson trimmed its target to $205 from $220 while keeping a Neutral stance. The firm’s adjustment followed an analysis of roughly 170,000 Duolingo users, which showed steady gains in daily activity during October and November compared to the prior quarter. User growth is tracking at about 29% year-over-year, broadly in line with consensus expectations, and supports Duolingo’s strong revenue momentum of nearly 40% over the past year, with forecasts of 38% growth for the current fiscal year.
DA Davidson also reviewed Duolingo’s chess expansion but found limited traction among Chess.com users, suggesting that a partnership or acquisition could strengthen retention in that segment. The revised price target reflects a valuation of 6.7x Duolingo’s projected 2026 enterprise value to revenue, a more conservative outlook despite growth holding steady. For now, DA Davidson remains cautious, maintaining Neutral until there is clearer evidence that Duolingo can sustain user growth ahead of expectations, while J.P. Morgan continues to see meaningful upside.
Duolingo, Inc. (NASDAQ:DUOL), headquartered in Pittsburgh, delivers a freemium learning platform centered on languages and expanding into music and chess, blending ads, paid tiers, and AI personalization.
While we acknowledge the potential of DUOL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DUOL and that has 100x upside potential, check out our report about this cheapest AI stock.
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