Over 25% of the Stocks in the S&P 500 Are Down 40% or More. 4 Bargain Tech Stocks to Buy Now

As the S&P 500 (^GSPC -1.21%) reaches its highest levels in history, it might surprise many to know that over a quarter of the index's stocks are now trading 40% or more below their previous peaks. This striking statistic, as of October 8, 2026, presents a unique opportunity for savvy investors to hunt for bargains.

Four stocks stand out as particularly interesting opportunities to consider today. Netflix (NFLX -0.18%) has experienced a significant decline in its stock price amid slowing growth. However, the company's resilience as an affordable form of entertainment remains strong. Netflix is heavily investing in advertising to become its primary growth engine, and it continues to add subscribers, boasting pricing power with its ad-free tier.

With a forward P/E ratio around 18.5 times the estimates for 2027, it is a compelling stock to acquire at its present valuation.

Oracle (ORCL -9.07%) has emerged as a focal point in the artificial intelligence (AI) stock market. The company's cloud computing infrastructure business is experiencing rapid growth, and it boasts one of the largest order books in the sector, valued at $664 billion as of the conclusion of Q2. Despite significant debt and cash burn, Oracle's cloud computing economics are robust and typically generate relatively swift returns within two to three years.

Oracle's elevated leverage and undervalued stock price present potential upside should the cloud model prove viable, as numerous prominent firms are optimistic about its success.

ServiceNow (NOW +1.14%) is a software-as-a-service (SaaS) leader that has been affected by the recent sell-off in the sector. However, ServiceNow's platform is deeply integrated into organizations, managing the entire software stack and providing configuration management with its database (CMDB). The company is aggressively leveraging AI and cybersecurity to drive expansion, with its AI Control Tower solution poised to become a crucial tool for managing and securing AI agents across various vendors.

With a forward price-to-sales (P/S) ratio of just 7.5 times based on 2027 analyst projections, ServiceNow is an enticing value amid its promising growth prospects. The rise of AI agents will demand comprehensive management and security, making ServiceNow the leading contender in this arena.

AppLovin (APP -3.28%) has faced setbacks due to increased competition in the gaming ad space and missing earnings expectations. However, the company remains on a trajectory of rapid growth, with a stock price currently trading at a discount of only 13 times the 2027 analyst earnings estimates. AppLovin's revenue surged by 53% in the last quarter, reaching $1.9 billion, while its adjusted earnings per share (EPS) rose 66% to $3.76.

Moreover, Q3 revenue increased by 46% to 48%, propelled by enhanced models and expanding into the consumer market. The consumer vertical presents a significant chance for AppLovin, and recent projections indicate that advertisers anticipate a considerable uptick in e-commerce advertising on the platform for Q4 and beyond. With modest expectations and a cheap valuation, AppLovin appears poised for substantial growth.