Amid the current backdrop of global economic uncertainty, the once-coveted tech sector is undergoing a fierce sell-off. High capital expenditures and concerns over the future development path of artificial intelligence (AI) have shaken the confidence of many investors in this sector. However, for investors who previously struggled with excessively high valuations, this market overreaction might just present a rare window of opportunity for positioning. The following two tech stocks, which have experienced significant price pullbacks, have fundamental highlights worth noting.
Oracle’s (ORCL) recent stock price trajectory can be described as full of twists and turns. Earlier, due to a massive cooperation agreement with OpenAI, the market had high hopes for its performance in 2025, and the stock price once surged. But as the market’s focus shifted to its heavy debt burden and ongoing capital expenditure plans, the optimism was quickly replaced by doubt. The company’s accumulated debt has approached approximately $135 billion, and it plans to invest another $50 billion in capital expenditures by 2026, unsettling investors.
However, the current market panic may underestimate the company’s actual business progress. Oracle’s fiscal third-quarter 2026 earnings report showed that its backlog has surged to $553 billion, and cloud infrastructure revenue achieved an 84% year-over-year increase, indicating that huge market demand is effectively translating into actual revenue. Affected by pessimistic sentiment, Oracle’s stock price has fallen more than half from its highs. Its current price-to-earnings (P/E) ratio has dropped to 28 times, and its forward P/E ratio is just 21 times, with clear technical oversold signals. As the backlog is gradually realized, this tech giant’s stock price is expected to stage a strong recovery.
Another stock that might be unjustly sold off by the market is Sea Limited (SE), a tech giant in Southeast Asia. With its leading positions in e-commerce, fintech, and gaming, the company is often likened to the “Amazon of Southeast Asia.” However, recent pressures on profit margins and the rapid expansion of its loan scale have triggered investor panic, causing its stock price to more than halve since last September.
A deeper analysis reveals that the contraction in its e-commerce business profit margins is primarily due to investments in its VIP membership program, which should help enhance user loyalty in the long run. Meanwhile, its fintech arm, Monee, is utilizing AI models to optimize borrower risk assessment, which is expected to help control bad debt risks while expanding its loan scale. Garena, its gaming business once severely hit by the fading of pandemic-induced tailwinds, has also reported a rebound in bookings. Financial data confirms these positive business changes: In 2025, the company’s overall revenue grew by 36%, with gaming revenue up 26%, fintech revenue surging by 60%, and e-commerce revenue also recording a 33% increase. After the deep price correction, its current P/E ratio stands at 33 times, but considering expected growth in 2026, the forward P/E ratio would drop to 22 times. This relatively low valuation, coupled with strong growth potential, provides solid support for a rebound in Sea Limited’s stock price.
