In this piece, we discuss the 12 Best Beaten Down Technology Stocks to Buy According to Wall Street Analysts.
The topic is relevant in today’s macro backdrop, where investors are grappling with several challenges in 2026, including persistent inflation, volatile monetary policy, and the impact of ongoing advances in artificial intelligence (AI).
JPMorgan’s 2026 outlook report (December 9, 2025) had highlighted that investors are facing multiple risks. The firm projected a 35% probability of a U.S. and global recession, alongside soft labor demand. At the same time, the report highlighted shrinking household spending and weak business sentiment, hinting at potential volatility and a slowdown.
In its January 30, 2026, report, U.S. News described the ongoing macro setup similarly to JPMorgan. The report cited ongoing headwinds related to trade tensions, sticky core inflation at 2.8% (November 2025), and weak consumer sentiment.
At the same time, the Federal Reserve sustains historically low unemployment at 4.4% and projects 2.3% GDP growth in 2026.
However, market observers believe inflation stemming from government policies, alongside a possible AI bubble, are key factors keeping market volatility just around the corner.
While the broader market was relieved to see the U.S. economy avoid a downturn in 2025, these factors still underpin the ongoing uncertainty investors face in 2026.
Yet JPMorgan expressed optimism in its report, projecting double-digit gains for global equities in 2026. The AI-driven capital expenditures and earnings growth of 13%-15% in the U.S. drove the firm’s stance, even though the gap between AI and non-AI sectors widens. According to the bank, a recession is often preceded by market declines. However, recoveries begin before improvements in economic conditions are evident.
On this note, we will now move to our list of the 12 Best Beaten Down Technology Stocks to Buy According to Wall Street Analysts.
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Our Methodology
To curate our list of the 12 Best Beaten Down Technology Stocks to Buy According to Wall Street Analysts, we used online screeners to identify a list of stocks that operate in the technology-driven industries, including software infrastructure and data-enabled platforms, have lost 15% or more over the past 12 months, and are trading near their 52-week low.
Next, we ensured to select stocks with strong analyst sentiment and coverage. Furthermore, we assessed hedge fund sentiment toward these stocks using Insider Monkey’s database, which tracks over 1,000 hedge funds. Finally, we ranked these stocks in ascending order based on each stock’s upside potential.
Note: All data were extracted as of market close on February 20.
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12. Vertex, Inc. (NASDAQ:VERX)
Upside Potential: 56.10%
Number of Hedge Fund Holders: 27
As of February 18, 2026, more than half of covering analysts remain bullish on Vertex, Inc. (NASDAQ:VERX), indicating 53.97% upside potential with a consensus price target of $19.00.
On February 12, 2026, Adam Hotchkiss, an analyst at Goldman Sachs, reduced Vertex, Inc. (NASDAQ:VERX)’s price target from $25 to $23 while keeping his Buy rating. The downgrade came after Q4 2025 results, which were followed by a 13% drop in share price.
The firm remains confident in the company’s outlook despite concerns regarding short-term free cash flow volatility. Its optimism stems from management’s FY26 guidance, which indicates a strong surge in overall future performance. The firm’s view was inclined toward slowing growth of subscription revenue and ARR due to softness in upsell activity, higher churn, and lower entitlement growth.
Vertex, Inc. (NASDAQ:VERX) reported Q4 2025 results on the previous day. The release featured 9.1% year-over-year growth in revenue ($194.7 million), thanks to a 23% YoY growth in cloud revenue. The company posted a net revenue retention rate of 105% and ARR YoY growth of 11.3% to $671.0 million.
The adjusted EBITDA margin increased to 21.8%, while the non-GAAP net income was $27.8 million with an EPS of $0.17. While the company’s full-year 2025 revenue was $748.4 million (+12.2% YoY), it guided for 2026 revenue of $823.5–$831.5 million and cloud growth of 25%. As part of its $150 million buyback program, the company bought back $10 million worth of shares.
Vertex, Inc. (NASDAQ:VERX), a leading provider of indirect tax and e-invoicing solutions, uses AI-powered offerings to accelerate enterprise revenue growth, profitability, and operational efficiency in global markets.
11. monday.com Ltd. (NASDAQ:MNDY)
Upside Potential: 61.20%
Number of Hedge Fund Holders: 64
As of February 18, 2026, about 90% of analysts remain bullish on monday.com Ltd. (NASDAQ:MNDY), with a consensus price target of $120, suggesting a 55.54% upside.
Monday.com Ltd. (NASDAQ:MNDY) announced its fiscal Q4 2025 and full-year results on February 9, 2026.
With 45% YoY growth in customers with $100K+ ARR, monday.com Ltd. (NASDAQ:MNDY) is still growing upmarket. Management anticipates $1,452–$1,462 million in revenue and $165–175 million in non-GAAP operating income in FY2026.
During the quarter, monday.com Ltd. (NASDAQ:MNDY) reported revenue of $333.9 million, up 25% year-over-year. Meanwhile, full-year revenue came in at $1,232 million, up 27% year over year. In Q4 and FY2025, non-GAAP operating margins were 13% and 14%, respectively, with adjusted free cash flow of $322.7 million.
On February 10, 2026, analysts lowered their MNDY price targets, citing short-term demand disruptions and a more cautious outlook for revenue. TD Cowen, DA Davidson, and Cantor Fitzgerald lowered their price targets on monday.com Ltd. (NASDAQ:MNDY) to $125, $100, and $95, respectively.
monday.com Ltd. (NASDAQ:MNDY) offers Work OS, a cloud-based visual work platform with modular components that enable teams worldwide to efficiently manage workflows and develop applications across a variety of industries.
10. Atlassian Corporation (NASDAQ:TEAM)
Upside Potential: 86.90%
Number of Hedge Fund Holders: 82
As of February 18, 2026, about 80% of analysts remain bullish on Atlassian Corporation (NASDAQ:TEAM), with a consensus target of $150, implying an 80.33% upside.
On February 6, 2026, Bernstein noted a robust Q2 performance and durability amid generative AI narratives. While doing so, the firm reiterated an Outperform rating on Atlassian Corporation (NASDAQ:TEAM) while reducing its target to $290 from $304.
Citing industry unrest and stressing that Atlassian Corporation (NASDAQ:TEAM)’s fundamentals are still strong, Citi also reiterated its Buy rating on February 9, 2026, and lowered its target from $210 to $160.
Moreover, on February 5, 2026, Atlassian Corporation (NASDAQ:TEAM) released its Q2 FY26 results, which reaffirmed analyst optimism. Marking $1.1 billion in cloud revenue and its first quarter with $1 billion or more, total revenue increased 23% year-over-year to $1.6 billion. For the third consecutive quarter, cloud net revenue retention surpassed 120%, and RPO increased 44% year-over-year to $3.8 billion.
With 600+ $1 million+ ARR customers (+40% YoY) and Teamwork Collection surpassing 1 million seats, enterprise momentum remained strong. Atlassian’s management placed a strong emphasis on opportunistic share buybacks supported by healthy free cash flow, AI-driven adoption, and disciplined growth.
Atlassian Corporation (NASDAQ:TEAM) develops productivity and team collaboration software, including Jira, Confluence, and Jira Service Management, that support cloud adoption, enterprise workflows, and AI-powered solutions for more than 350,000 clients worldwide.
9. Genius Sports Limited (NYSE:GENI)
Upside Potential: 87.20%
Number of Hedge Fund Holders: 43
Amid its strategic moves and inconsistent 2025 performance, Genius Sports Limited (NYSE:GENI) is facing investor scrutiny.
On February 18, 2026, with a Neutral rating, UBS reduced its price target from $12 to $6. With the exception of its early-2025 equity raise, Genius Sports Limited (NYSE:GENI) reported that while it achieved its adjusted EBITDA targets, cash flow growth lagged, and year-end cash was essentially flat. The $1.2 billion Legend acquisition and expensive NFL and EPL rights have not yet produced significant cash flow, according to UBS, casting doubt on the long-term viability of highly adjusted EBITDA metrics.
The CEO and co-founder of Genius Sports Limited (NYSE:GENI), Mark Locke, spoke with shareholders that same day and emphasized the strategic importance of Legend’s acquisition. Rather than as a media company, Locke looks at Legend as a technology platform that gathers user participation and engagement across 320 million visits from 118 million unique users in 2025.
He emphasized how Legend enhances Genius Sports Limited (NYSE:GENI)’s participation layer in contemporary sports by fusing distribution, intelligence, and infrastructure to produce a high-growth, high-margin asset with structural advantages over conventional sports media.
For background, on February 5, 2026, Genius Sports Limited (NYSE:GENI) entered into an agreement to purchase Legend, with the deal expected to be worth up to $1.2 billion, which includes $900 million due at closing and an earnout of up to $300 million.
Genius Sports Limited (NYSE:GENI), based in London, U.K., and founded in 2000, offers scalable technology solutions for media, sports, and sports betting. These products include platforms for fan interaction, live data, odds management, and risk services.
8. Guidewire Software, Inc. (NYSE:GWRE)
Upside Potential: 93.30%
Number of Hedge Fund Holders: 55
Guidewire Software (NYSE:GWRE) recently faced a cautious near-term outlook from Wall Street despite securing a strategic global expansion.
On February 18, 2026, Allan Verkhovski, a BTIG analyst, maintained a Buy rating on Guidewire Software (NYSE:GWRE) and reduced the price target from $225 to $175 as part of a sector research note that revealed the application software Q4 results. According to the analyst, it is still challenging to predict how the companies that are being covered will be able to shake off the AI disruption overhang.
On the same day, Sompo Group revealed a long-term agreement that will facilitate its worldwide implementation of Guidewire Cloud Platform tools and applications. Through the agreement, Sompo will be able to move its current Guidewire applications, such as PolicyCenter and ClaimCenter, from on-premises settings to the Guidewire Cloud Platform, starting with its global commercial operations.
PolicyCenter, BillingCenter, Jutro Digital Platform, and Data Studio were chosen as new core systems by Sompo Direct Insurance in Japan. In 2024, Sompo Direct deployed ClaimCenter on the Guidewire Cloud Platform.
Guidewire Software (NYSE:GWRE) is a San Mateo, California-based technology platform provider for property and casualty insurers. It combines digital, analytics, and artificial intelligence applications with core systems of record.
7. Freshworks Inc. (NASDAQ:FRSH)
Upside Potential: 94.10%
Number of Hedge Fund Holders: 41
On February 18, 2026, more than 60% of covering analysts remain bullish on Freshworks Inc. (NASDAQ:FRSH), predicting a 62.60% upside with a consensus price target of $12.00. This is indicative of a positive end to 2025 performance and strong analyst sentiment.
On February 10, 2026, Freshworks Inc. (NASDAQ:FRSH) announced results that surpassed growth and profitability forecasts, demonstrating strong momentum in the fourth quarter and the full year 2025. In Q4, total revenue increased 14% year-over-year to $222.7 million, non-GAAP operating income was $41.6 million with an 18.7% margin, and GAAP net income per share increased from $(0.07) to $0.67.
Revenue for the entire year increased 16% to $838.8 million, and non-GAAP net income per share increased to $0.66 from $0.43 in 2024. With a 26.6% margin, adjusted free cash flow for the year came to $223.1 million.
With acquisitions such as FireHydrant and new features in Freshservice, Freshdesk, and Freddy AI in the fourth quarter, Freshworks Inc. (NASDAQ:FRSH) is still growing its AI-driven product line. Freddy AI surpassed $25 million in annual recurring revenue, while Device42 and Enterprise Service Management each surpassed $40 million. The company expects non-GAAP net income per share in 2026 to be between $0.55 and $0.57, with a revenue of $952 to $960 million.
Freshworks Inc. (NASDAQ:FRSH) simplifies employee and customer experiences by developing SaaS software, such as Freshdesk, Freshservice, Freshsales, Freshmarketer, and Freshteam. It was established in 2010 and has its headquarters in San Mateo, California.
6. ServiceTitan, Inc. (NASDAQ:TTAN)
Upside Potential: 105.25%
Number of Hedge Fund Holders: 25
Ahead of its upcoming growth phase, ServiceTitan, Inc. (NASDAQ:TTAN) is attracting investor attention as bullish sentiment intensifies. As of February 18, 2026, more than 80% of covering analysts are bullish on the stock, indicating a 105.25% upside with a consensus price target of $130.50.
The analysts’ activity reflects different, but positive, viewpoints. On February 2, 2026, Piper Sandler maintained its Overweight rating on ServiceTitan, Inc. (NASDAQ:TTAN) but reduced its price target from $140 to $120, pointing out that vertical software, such as ServiceTitan, benefits from proprietary data, specialized workflows, and solid customer relationships. The investment firm noted that these industries are more resilient to AI-driven disruption and emphasised the growing demand for compute and storage to support hyperscalers and consumption growth.
Morgan Stanley, meanwhile, raised the price target to $131 from $125 in January 2026 while upgrading ServiceTitan, Inc. (NASDAQ:TTAN) from Equal Weight to Overweight. The investment bank named ServiceTitan its new sector top pick, replacing Toast (TOST), citing a positive inflection in valuation, commercial ramp, and go-to-market efficiency. This decision reflects confidence in fundamentals and execution across the construction and trades verticals.
ServiceTitan, Inc. (NASDAQ:TTAN) develops field service management software for residential and commercial infrastructure, facilitating installation, maintenance, and service operations. Founded in 2008, the company is based in Glendale, California.
5. Asana, Inc. (NYSE:ASAN)
Upside Potential: 108.10%
Number of Hedge Fund Holders: 31
Asana, Inc. (NYSE:ASAN) is navigating growing market skepticism ahead of its earnings release, scheduled for after the market close on March 2, 2026. The current outlook on the stock remains challenging from the analyst’s point of view, as only 35% of the covering analysts are bullish on the stock as of February 18, 2026.
Due to the company’s below-par profits in the past, Asana, Inc. (NYSE:ASAN) received criticism from HSBC on February 13, 2026. HSBC revised the price target on the stock, cutting it from $10 to $8. The firm maintained its Reduce rating.
Ten days earlier, Asana, Inc. (NYSE:ASAN) received mixed commentary from Piper Sandler. The firm cited seat compression and vibe-coding factors as key challenges for the company that are limiting the stock’s upside. Piper Sandler also reduced its target from $19 to $14 but reiterated an Overweight rating.
As broader analyst sentiment remains mixed over the software industry, Piper Sandler expressed its inclination toward the hyperscaler, consumption, and vertical sub-sectors. The firm did not comment on the company’s upcoming Q4 results.
Despite the softness in overall sentiment around Asana, Inc. (NYSE:ASAN), the consensus price target of $16.00 implies a 107.93% upside.
Asana, Inc. (NYSE:ASAN) helps businesses streamline their daily tasks and strategic cross-functional projects with its work management platform.
4. nCino, Inc. (NASDAQ:NCNO)
Upside Potential: 125.00%
Number of Hedge Fund Holders: 31
The overall sentiment surrounding nCino, Inc. (NASDAQ:NCNO) remains soft, as analysts update their models following a sluggish share price performance in the past year amid broader headwinds in the software group.
JPMorgan sees the accelerated expansion of AI as a concern. The growing adoption of AI is expected to erode the competitive edge and long-term viability of software companies. The firm attributes this trend to the overall sector underperformance. Amid these sector challenges, the firm reduced the price target on nCino, Inc. (NASDAQ:NCNO) from $30 to $16. It maintained its ‘Neutral’ rating on the stock on February 18, 2026.
On a similar note, Barclays revisited nCino, Inc. (NASDAQ:NCNO) in early January. The firm cited mixed Wall Street sentiment amid heightened AI competition, which is seen as a possible driver of the current weakness in the software sector. While making adjustments to the sector model, the firm cut its price target on the stock from $37 to $34. Still, the firm reiterated its Overweight rating.
In the middle of these two updates, nCino, Inc. (NASDAQ:NCNO)’s shares fell to their 52-week low of $17.60 on February 11, 2026. The slide follows a 46.90% share price decline over the previous year, representing the tough times the software group is facing.
nCino, Inc. (NASDAQ:NCNO)’s business model leverages the company’s Bank Operating System and IQ. With this, the company offers cloud-based banking software to allow financial institutions to service lending, onboarding, compliance, and risk management through AI-driven analytics.
3. Duolingo, Inc. (NASDAQ:DUOL)
Upside Potential: 134.00%
Number of Hedge Fund Holders: 51
As of February 18, 2026, about 60% of covering analysts remain bullish, with the consensus price target of $250.00 implying a potential upside of 117.54%. This comes despite Duolingo, Inc. (NASDAQ:DUOL)’s rough start to 2026. On February 11, 2026, shares fell to a 52-week low of $112.41, marking a sharp 70% decline in just one year.
Amid these developments, on February 3, 2026, Morgan Stanley reduced its price target on Duolingo, Inc. (NASDAQ:DUOL) from $275 to $245 while keeping its Overweight rating.
The investment firm cited tactical caution ahead of earnings, noting that initial FY26 bookings may fall short of street estimates due to the focus on user growth. Morgan Stanley emphasised the possibility of better acquisition and retention as well as early indications of DAU stabilization.
With a Neutral rating, DA Davidson also lowered its target on Duolingo, Inc. (NASDAQ:DUOL) from $205 to $170, stating that internal data tracking 170,000 users revealed that January’s m/m DAU increase was the largest since tracking started, though extrapolation indicates Q1 may fall roughly 4% below consensus.
Duolingo, Inc. (NASDAQ:DUOL) offers language-learning platforms and educational tools, such as web and mobile applications, English assessments, and school-focused offerings, to global learners through gamification and crowdsourced translation.
2. Wix.com Ltd. (NASDAQ:WIX)
Upside Potential: 136.10%
Number of Hedge Fund Holders: 50
Intuit Inc. (NASDAQ:INTU) and Wix.com Ltd. (NASDAQ:WIX) strengthened their collaboration on February 17, 2026. The partnership aims to provide small businesses with a more cohesive, AI-powered platform to handle their online presence and finances. In addition to automating accounting tasks and integrating CRM data with Mailchimp for improved marketing capabilities, Wix users can now use QuickBooks Online to obtain insights into cash flow, profitability, and tax liabilities.
Furthermore, the move enables QuickBooks users to create AI-powered Wix.com Ltd. (NASDAQ:WIX) websites with pre-loaded company data, taking advantage of SEO, mobile optimization, and user-friendly design tools. This is achieved while maintaining their current workflows. Executives emphasized that the collaboration creates a complete end-to-end solution with the integration of Intuit’s financial management platform with Wix’s website development and eCommerce experience.
This integration is expected to drive strategic growth for both companies by enabling greater product stickiness, deeper engagement with SMB users, and enhanced potential for recurring revenue through AI-powered workflows and cross-platform synergies.
Wix.com Ltd. (NASDAQ:WIX) is a software-as-a-service (SaaS) web development platform that enables creators and small businesses worldwide to create and manage online experiences. It offers AI-driven website building, templates, hosting, mobile apps, eCommerce, and integrated business tools.
1. Braze, Inc. (NASDAQ:BRZE)
Upside Potential: 164.10%
Number of Hedge Fund Holders: 31
As of February 18, 2026, all covering analysts remain bullish on Braze, Inc. (NASDAQ:BRZE) and forecast a potential upside of 166.27%, with a consensus target of $45 per share.
Amid AI-driven disruption in SaaS, analysts emphasize Braze’s strong competitive position. Braze, Inc. (NASDAQ:BRZE) stands out as an ideal example of a company with an overlooked moat and a potential AI winner, according to Stifel, amid negative sentiment driven by AI-native entrants and recent model announcements.
According to Goldman Sachs, software companies have structural advantages such as distribution, domain expertise, data moats, and brand equity that could facilitate value creation through mergers and acquisitions, the purchase of leading private-market technologies, and cross-portfolio synergies. Both analysts emphasize that Braze, Inc. (NASDAQ:BRZE)’s robust platform and integrated CRM solutions offer long-term growth prospects, even in the face of AI-related uncertainty in the broader SaaS market.
In terms of analyst activity, Goldman Sachs revised its price target on Braze, Inc. (NASDAQ:BRZE) to $45 from $55 on January 28, 2026, and assigned a Buy rating. Meanwhile, Stifel lowered its price target to $40 from $45 on February 11, 2026, while keeping a Buy rating.
Braze, Inc. (NASDAQ:BRZE) provides a customer engagement platform that integrates messaging, segmentation, analytics, and user support tools for mobile applications. It also provides push notifications, email, in-app messages, and news feed services to global clients.
While we acknowledge the potential of BRZE 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 BRZE and that has 100x upside potential, check out our report about this cheapest AI stock.
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