2 Tech Stocks Down More Than 20% That I Think Are Coiled Springs Right Now

May 25, 2026 - 02:51

Two major tech stocks have fallen more than 20% from their highs, and I believe they are coiled springs ready to bounce back. The companies in question are cloud computing leaders that continue to deliver impressive financial results despite the broader market downturn.

The first is a dominant player in cloud infrastructure and enterprise software. Its recent earnings showed double-digit revenue growth, with its cloud segment accelerating even as competitors struggle. The company has been investing heavily in artificial intelligence and data analytics, which are driving new customer adoption. Despite the stock's decline, its operating margins remain healthy, and its free cash flow generation is among the best in the industry.

The second stock is a specialist in cloud-based customer relationship management. It reported a strong quarter with subscription revenue up over 20% year over year. The company has been expanding its product suite into areas like marketing automation and e-commerce, creating more cross-selling opportunities. Its recent acquisition of a data analytics firm should further strengthen its competitive position.

Both stocks are currently trading at price-to-earnings ratios that are well below their five-year averages. The sell-off appears to be driven by macroeconomic concerns rather than any fundamental weakness in their businesses. With strong balance sheets, recurring revenue models, and growing addressable markets, these companies are well-positioned to rebound once investor sentiment improves. For patient investors, the current pullback could represent a rare buying opportunity in two of the most resilient names in tech.