In this article, we will list the 5 Best Falling Stocks to Invest In Now. Please visit 12 Best Falling Stocks to Invest In Now if you would like to see the extended list and the methodology behind it.

5. Sea Limited (NYSE:SE)

Stock Upside: 55.48%

1-Year Loss: 26.74%

Number of Hedge Fund Holders: 113

Sea Limited (NYSE:SE) is one of the best falling stocks to invest in now. On April 20, Sea Limited (NYSE:SE) established an Artificial Intelligence Centre of Excellence, or AI CoE, in Singapore. The company said the Digital Industry Singapore, or DISG, which is a joint government office involving the Economic Development Board, Enterprise Singapore, and the Infocomm Media Development Authority, backed this initiative.

Sea has organized the AI CoE around foundational AI, which involves advancing the company’s in-house foundation model development and evaluation frameworks. The goal is to stay at the frontier of AI research. The second focus area is scalable deployment. This involves translating research breakthroughs into production-ready solutions that can be deployed at scale to improve user experience and business efficiency. The other focus area is AI-native talent and new operating models. Here, the initiative will focus on cultivating a new generation of AI-native employees and experimenting with AI-enabled ways of working.

Sea said that over the next three years, it expects the AI CoE to generate demand for at least 100 R&D and innovation roles in Singapore. The roles span AI research, engineering, and product development.

The company added that a key focus of the center will be deepening its stable of in-house AI models. This includes Compass Max v3.5, which is a 245 billion parameter Large Language Model, or LLM, that Sea built specifically for Southeast Asian languages and e-commerce contexts. The model is already live across Shopee’s platform.

Sea Limited (NYSE:SE) is a digital platform company. It operates across e-commerce, digital entertainment, and financial services in Southeast Asia and Latin America. Its key businesses include Shopee, an online marketplace; Garena, a digital gaming platform; and SeaMoney, which provides digital payments and financial services.

4. Strategy Inc. (NASDAQ:MSTR)

Stock Upside: 55.52%

1-Year Loss: 52.20%

Number of Hedge Fund Holders: 41

Strategy Inc. (NASDAQ:MSTR) is one of the best falling stocks to invest in now. On April 21, Cantor Fitzgerald analyst Ramsey El-Assal raised his price target on Strategy Inc. (NASDAQ:MSTR) to $212 from $192, keeping an Overweight rating on the stock.

El-Assal said that investor attention is increasingly shifting toward how Strategy is evolving as a bitcoin holding vehicle ahead of its Q1 FY2026 earnings on May 2. For context, Strategy has transformed itself into essentially a bitcoin acquisition machine. The company has raised capital through stock sales, preferred equity, and debt to continuously buy and hold bitcoin on its balance sheet. Its share price therefore moves closely with bitcoin’s price and the market’s appetite for indirect bitcoin exposure.

The analyst noted that during Strategy’s Q4 earnings call, the dominant concern was bitcoin’s long-term vulnerability to quantum computing. However, more recently, the focus has moved to whether the company can manage its growing interest burden following a sharp increase in issuance of STRC, its preferred stock instrument used to raise capital.

Still on the quantum computing risk, El-Assal noted that he is seeing early but meaningful progress on proposals to make bitcoin quantum-resistant. Though, he acknowledged that substantial work remains before the protocol actually gets there.

Strategy Inc. (NASDAQ:MSTR), formerly known as MicroStrategy Incorporated, is a provider of enterprise analytics and business intelligence software. It offers platforms that help organizations analyze data and support decision-making. Additionally, the company has adopted a bitcoin treasury strategy, which means it holds significant amounts of bitcoin as a primary reserve asset.

3. Zscaler, Inc. (NASDAQ:ZS)

Stock Upside: 55.79%

1-Year Loss: 28.96%

Number of Hedge Fund Holders: 56

Zscaler, Inc. (NASDAQ:ZS) is one of the best falling stocks to invest in now. On April 22, Morgan Stanley analyst Meta Marshall downgraded Zscaler, Inc. (NASDAQ:ZS) from Overweight to Equalweight and cut the price target to $155 from $200.

The analyst said Zscaler’s platform expansion story is not playing out as expected and that there are no meaningful positive catalysts on the horizon. Incidentally, Morgan Stanley had upgraded the stock on the thesis that Zscaler could grow beyond its core business. The firm also believed the company would cement itself as a third major cybersecurity platform vendor, alongside industry giants like Palo Alto Networks and CrowdStrike. The plan had three pillars, including expanding through the Red Canary acquisition, building out data security capabilities, and growing Zscaler Digital Experience, or ZDX.

Of those three, only ZDX has shown real momentum, noted Marshall. He stated that the product crossed $100 million in annual recurring revenue, and bookings grew 80% year over year. However, Red Canary, the acquisition that was supposed to bolster Zscaler’s threat detection capabilities and broaden its platform reach, has not gained the traction Morgan Stanley expected. The analyst said integration into Zscaler’s core Zero Trust Exchange platform is still a work in progress, and the market impact has been underwhelming so far.

Also, the analyst noted that Zscaler operates in the Secure Access Service Edge market, which is a fast-growing but increasingly crowded space that combines network security and wide-area networking into a single cloud-delivered service. As more vendors pile in, pricing pressure intensifies and winning new business becomes more difficult. Morgan Stanley now expects Zscaler’s two main products, ZIA and ZPA, to settle into mid-teens growth rates. This is a substantial step down from the hypergrowth that originally attracted investor enthusiasm, Marshall said.

Zscaler, Inc. (NASDAQ:ZS) is a cloud-based cybersecurity company. It provides zero-trust security solutions designed to protect users, devices, and applications across enterprise networks. Its platform delivers secure internet access, private application access, and threat protection through a fully cloud-native architecture.

2. Flutter Entertainment Plc (NYSE:FLUT)

Stock Upside: 56.69%

1-Year Loss: 51.89%

Number of Hedge Fund Holders: 79

Flutter Entertainment Plc (NYSE:FLUT) is one of the best falling stocks to invest in now. On April 9, Stifel analyst Christopher Bavitz cut his price target on Flutter Entertainment Plc (NYSE:FLUT) to $189 from $216 while keeping a Buy rating on the stock.

The analyst said his firm, Stifel, had reassessed expectations ahead of Flutter’s Q1 2026 earnings report. This was largely because of ongoing weakness in the company’s US online sports betting business following a guidance reset that disappointed the market earlier in the year. Bavitz noted that Flutter had already rattled investors in February when it issued fiscal year 2026 guidance that came in well below Wall Street expectations.

The core focus heading into the earnings print, according to Stifel, is the US handle share exit-rate. This is essentially what portion of total bets placed in the country Flutter is capturing. The other focus area is whether early signs suggest the company’s adjusted promotional strategy is starting to work. Flutter had been spending aggressively to attract and keep bettors, but that approach hurt margins without sustaining the intended growth, noted Bavitz.

On this front, Stifel’s analysis of state-level betting data indicates that the rate at which customers stop using the platform likely peaked in December and January. This position aligns with what Flutter’s own management had indicated. The analyst added that handle share trends also improved sequentially heading into Q2, when Flutter plans to launch a new sports betting loyalty program designed to reduce churn and rebuild engagement.

Stifel estimates Flutter’s online casino net gaming revenue grew 20% year over year in Q1, which is slightly ahead of the company’s own high-teens growth guidance for the full fiscal year. That stronger casino performance is helping absorb the drag from softer sports betting volumes, said Bavitz.

Flutter Entertainment plc (NYSE:FLUT) is an international sports betting and gaming operator. Its portfolio of brands includes FanDuel, Paddy Power, Betfair, and PokerStars. The company offers online sports betting, iGaming, and poker services across multiple regulated markets.

1. Axon Enterprise, Inc. (NASDAQ:AXON)

Stock Upside: 72.87%

1-Year Loss: 27.11%

Number of Hedge Fund Holders: 68

Axon Enterprise, Inc. (NASDAQ:AXON) is one of the best falling stocks to invest in now. On April 7, Axon Enterprise, Inc. (NASDAQ:AXON) unveiled three new AI-powered tools during its annual Axon Week 2026 user conference. The tools are Axon Vision, an expanded Axon Assistant, and Axon 911. The company said the goal is to cut through what it calls the “data tax” crushing modern public safety agencies.

According to Axon, in the US alone, more than 240 million 911 calls are placed every year. These are increasingly including video, images, and telemetry, and that body-worn and static cameras generate millions of hours of footage simultaneously. In other words, critical context is constantly scattered across disconnected systems.

To that end, the company is positioning the three new tools as part of the solution. Axon Vision applies AI to live CCTV camera feeds to automatically recognize critical activity as it happens. This allows operators to verify incidents using nearby cameras and decide on the appropriate response rather than manually reviewing hours of footage.

For Axon Assistant, which was originally limited to body-worn cameras, the tool is now expanding across the entire Axon ecosystem. It gives officers secure, FBI CJIS-compliant access to data from Axon Evidence and the Axon mobile app in the field. This means officers can pull operational intelligence in real time without compromising data security or chain of custody requirements.

The Axon 911 tool is a cloud-based emergency call infrastructure built on Axon’s acquisitions of Prepared and Carbyne. Axon said this tool brings 911 center operations into the AI era by feeding emergency response data directly into field workflows so that responders arrive on scene with critical context already in hand.

According to Axon, these tools taken together work as a unified intelligence layer rather than separate point solutions. Users can connect TASER devices, body cameras, drones, in-car cameras, digital evidence management, and 911 data into a single, coherent picture of an unfolding incident.

Axon Enterprise, Inc. (NASDAQ:AXON) provides public safety technology solutions. It offers conducted energy devices, such as TASER devices, body cameras, and cloud-based digital evidence management software to law enforcement agencies and enterprises.

READ NEXT: 10 Best 52-Week High US Stocks to Buy and 9 Must-Buy Penny Stocks to Invest In Now.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email below.