In the stormy seas of the stock market, tech stocks have had quite the journey. Amidst the global pandemic, with the world cocooned at home, tech stocks are surging to multi-year highs. However, the narrative has taken a twist, and now, several tech stocks to sell are in the spotlight.
U.S. tech stocks danced on the tightrope of volatility and underperformance in 2022. While a noticeable bounce back featured in 2023, it’s crucial to remember that not all tech stocks share equal fortunes.
A few high-risk tech stocks have reared their heads, demanding caution from investors.
Hence, in the realm of tech stocks to sell now, there are contenders that investors might want to sidestep without a second thought. As always, it’s imperative to tread wisely and stay alert.
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Snap (NYSE:SNAP) the parent company of Snapchat, is traversing an uphill battle.
The popular social media platform is up against some major headwinds, including mounting competitive pressures, advertising disruptions, and a struggling economy.
The repercussions have been palpable, with SNAP stock enduring the stock market rout last year while struggling to get going since then.
Its lackluster first-quarter results are a testament to its challenging environment. Despite narrowing its net loss to $328.7 million and reporting a slight uptick in daily active users and engagement, the firm saw a considerable 7% slump in sales to $988.7 million.
The advertising market slowdown, compounded by Snap’s bleak forecast for its second-quarter sales, points to more downside ahead.
Its competition continues to wrestle back market share from its business. Behemoths such as TikTok and Facebook continue to attract a significantly larger active and engaged daily user base.
Due to the size of its platform and limited data harvesting capabilities, Snap’s susceptibility to Apple’s privacy changes presents another hurdle. While Snap’s management proactively invests in AI to drive further growth, these efforts will take time to bear fruit. That makes this among the prime tech stocks to sell.