3 Genius AI Stocks You'll Regret Not Buying During This Sell-Off

Stocks took a significant hit once the conflict began in the Middle East. With the supply chains of key commodities such as oil threatened, prices have risen, and stocks have dropped as the economy faces tremendous uncertainty.

Fortunately, stock sell-offs often translate into buying opportunities for long-term investors. Knowing that, investors will probably regret not buying these tech stocks while they sell at lower prices.

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1. Figma

Despite the unique value proposition of its software, Figma (NYSE: FIG) stock has struggled since its IPO last July. Investors anxiously awaited the launch of this stock as an attempted buyout by Adobe wound down, and customers took to its collaborative approach to UI/UX design for websites and apps.

However, after an IPO day run-up, investors began to balk at its valuation, and the stock has steadily declined since that time. Consequently, Figma now trades near 52-week lows.

Fortunately for interested investors, that price makes the stock increasingly attractive. It now sells at an 85% discount to its record closing price, which is $122 per share.

Moreover, the $1.06 billion in revenue earned in 2025 rose by 41% compared to 2024 levels. Also, while it reported a $1.25 billion net loss in 2025, all of that loss came from its $1.36 billion in stock-based compensation, a noncash expense. That allowed it to generate $243 million in free cash flow.

Plus, the price-to-sales (P/S) ratio that was well above 60 at the stock's peak has now fallen to 9. Admittedly, the pullback might be understandable with revenue growth expected to slow to 30%, well below year-ago levels. Nonetheless, with more customers adopting Figma's platform, the current stock price is less likely to stay at this low valuation.

2. Sea Limited

Sea Limited (NYSE: SE) may not be familiar to many American investors. Some may recognize the Free Fire mobile game developed by its gaming company, Garena. Still, the majority of its operations are in Southeast Asia, where it also runs the leading e-commerce company in the region, Shopee, and fintech giant Monee.

Despite its success in three high-growth businesses, bookings at Garena dropped by 20% quarter over quarter, and Monee's credit losses rose by 77% yearly as the company sought to increase loan volumes. The lower fuel supplies from the Middle East have also added to the uncertainty that has tremendously pressured the stock.

Nonetheless, the sell-off looks increasingly overdone, as the stock has fallen by 57% since last September.

Also, growth continues at a rapid pace. Its 2025 revenue of $22.9 billion increased by 36% yearly, with all three businesses posting double-digit growth. Moreover, with cost and expense growth not keeping pace with revenue, Sea reported more than $1.6 billion in net income, a 260% yearly increase.

What's more, its P/E ratio is 33, a level near multiyear lows and one that arguably makes the stock inexpensive given its growth. Considering the discounted stock price and this relatively low valuation, investors should think about buying shares.

3. Palo Alto Networks

Palo Alto Networks (NASDAQ: PANW) has become a cybersecurity leader by taking a generalist approach, working to protect endpoints while also developing strengths in network and hardware security. Moreover, Palo Alto works with companies that have both cloud and on-premise IT infrastructure that need protection, offering more flexibility than many other platforms.

Despite its offerings, IT companies have numerous choices due to the intense competition in this industry. Additionally, AI anxiety is hammering the sector as current cybersecurity products can't protect against some advanced AI applications. Amid its purchases of CyberArk and Chronosphere, investors also have questions about how well Palo Alto will integrate these assets into its ecosystem.

Still, its stock has fallen 30% since last October. Also, growth has stayed at a steady pace. In the first half of fiscal 2026 (ended Jan. 31), its $5.1 billion in revenue rose by 15% from year-ago levels.

Costs and expense increases lagged its revenue growth, which led to net income of $766 million in the first two quarters of fiscal 2026, a 24% yearly rise. This makes it one of the few cybersecurity companies currently earning a profit.

Admittedly, at a P/E ratio of 86, it is not a cheap stock. Nonetheless, rising profits should bring down that earnings multiple, and with a price-to-sales (P/S) ratio of 11, Palo Alto is likely the stock to own in this space.

Will Healy has positions in Sea Limited. The Motley Fool has positions in and recommends Adobe, Figma, and Sea Limited. The Motley Fool recommends Palo Alto Networks and recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.