U.S. equities are drifting lower again on Thursday, with the Dow Jones Industrial Average threatening to fall out of its two-month trading range. Among the most troubling stocks of the day were in the tech sector, including Fitbit Inc (NYSE:FIT), Qualcomm, Inc. (NASDAQ:QCOM) and Cisco Systems, Inc. (NASDAQ:CSCO).
Much of the post-election dynamic has already reversed amid profit taking, nervousness about the incoming Trump administration, and rate hike concerns. Bonds are strengthening, safe havens like gold are perking up, and bank stocks — the vanguard of the historic rally of the last few months — have rolled over amid tepid earnings results.
But now, a number of familiar technology-related stocks are rolling over too. Here are three that are on the slide:
Fitbit Inc (FIT)
Shares of wearables maker FIT look set for a new drawdown out of a three-month consolidation range. The $7-a-share level looks vulnerable here — representing new record lows and a crushing loss from the high of $52-a-share set back in the summer of 2015 amid red-hot hype for wearables.
Fitbit was downgraded on Dec. 8 by analysts at Deutsche Bank on weakness in the wearables market as interest by consumers wanes.
Fitbit will next report results on Feb. 22 after the close. Analysts are looking for earnings of 17 cents per share on revenues of $735 million.
Cisco Systems, Inc. (CSCO)
CSCO stock is drifting lower, threatening to break out of a very tight two-month consolidation range that has capped a five-month descent from the September high.
Analysts at Stifel have been lukewarm on the stock, noting a wide disconnect between the company’s growth expectations and Street estimates in high-growth areas such as its Data Center segment.
Cisco Systems will next report results on Feb. 15 after the close. Analysts are looking for earnings of 56 cents per share on revenues of $11.6 billion.
Qualcomm, Inc. (QCOM)
QCOM shares have been hit have the past week after government regulators filed antitrust charges that the company maintained a monopoly in cell phone semiconductors. The company has fired back that it will “vigorously contest” the charges since they are, in their opinion, based on “flawed legal theory.” But investors are worried these charges will undermine the company’s lucrative licensing revenue stream — especially since the lawsuit mirrors similar charges faced overseas.
Qualcomm will next report results on Jan. 25 after the close. Analysts are looking for earnings of $1.18 per share on revenues of $6.1 billion.
Anthony Mirhaydari is founder of the Edge and Edge Pro investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
