Inuit, AppLovin, and Lululemon Have Crashed More Than 50% in 2026. Are These Stocks Bargains or Busts?

Warren Buffett says he likes to buy stocks “when they're on the operating table," as that could unlock some great deals. Going against the grain and investing in stocks that are down big can yield great returns later on, but only if the businesses prove their doubters wrong. There are many stocks that won't recover and will simply continue declining.

Many stocks within the S&P 500 are down big this year, even with the broad index reaching new heights. Intuit (INTU +1.83%), AppLovin (APP -1.10%), and Lululemon Athletica (LULU +0.52%) have all lost more than half their value this year. Are any of these stocks worth buying, or are they destined to continue falling lower? Let's take a closer look at each one of these businesses to see why their stocks are struggling and if they can turn things around.

Software stock Intuit has crashed 56% this year. It's been a monstrous decline for a company that's still generating solid numbers. Intuit is known for its finance and accounting software, including QuickBooks and TurboTax, which many professionals and businesses rely on.

The tech stock nosedived early in the year as a panic around artificial intelligence (AI) and its potential to disrupt the software industry ensued, leading to a massive sell-off of Intuit and many other stocks. Intuit hasn't recovered from that.

Meanwhile, the company is forecasting between 9% and 10% revenue growth for the 2027 fiscal year (it ends next July). Its diluted per-share earnings are expected to rise by at least 22%.

Intuit is not a stock that's in deep trouble. Investors dumping it may have made a huge mistake. Trading at just 13 times its estimated future profits (based on analyst expectations), it may prove to be a steal of a deal in the not-too-distant future. This is definitely a bargain.

Tech company AppLovin has seen its shares crash by 59% thus far in 2026. It has followed a similar path to that of Intuit, as AI-related fears have prompted an exodus here as well.

Concerns are that AI will diminish the need for adtech. More businesses will be able to do it, competition will intensify, and AppLovin's business may no longer be as lucrative. For now, however, things seem to be going just fine for the company. In the June quarter, AppLovin's revenue rose by 53%, and profits were up by 55%. The business still sees more growth ahead.

I think there's been a bit of an exaggeration with AI fears related to AppLovin as well, but I do believe there may be greater competition and headwinds facing the business in the future.

At a forward price-to-earnings multiple of 15, it's a more reasonably valued stock than it has been in the past. However, I'd take a wait-and-see approach here to see if its high growth rate can hold up over the next few quarters.

Lululemon's 55% decline this year can't be blamed on AI. Instead, it's the company's poor performance that is behind the stock's massive freefall.

In its most recent quarter, for the period ending Aug. 2, revenue was down 4%. The company has changed CEOs in an effort to find ways to turn things around, but the reality is that it simply won't be easy. The apparel company faces similar challenges to Nike, where consumers aren't seeing a reason to pay top dollar for clothing when there are many options out there, including from cheap online retailers.

This is the only stock on this list that I wouldn't even consider buying, simply because of the significant risk and uncertainty ahead for the business. I don't believe there is an easy fix here for Lululemon's new CEO, and the stock could very well continue declining even further.