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The 5 Best (And 5 Worst) Tech Stocks to Buy Now

Tech has been red-hot in 2017, and many success stories will continue for months and years to come. But not every sector stock is gold.

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Worst Tech Stocks to Buy: Snap (SNAP)

Worst Tech Stocks to Buy: Snap (SNAP)
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Snap Inc (NYSE:SNAP) broke below its initial offering price this week. That’s not a fatal occurrence for a recent IPO, but it is a red flag.

Snap is battling mighty Facebook, which has effectively leveraged its Instagram property to hijack Snapchat’s features. And it’s working, as Snap’s social platform is quickly losing steam. During its latest quarter, daily active users grew by only 36% to 166 million. This missed Street estimates of 167.3 million and compared to a 100% rate for the prior year.

The top line, which sagged below consensus views, also suffered as a result.

Another problem is Snap’s lockup expiration, which comes at the end of July. Roughly 1.2 billion insider shares will be freed up for sale. This doesn’t guarantee a huge dump of stock, but in light of recent weakness, I expect a good round of selling; employees won’t want to miss out on what profits they can lock in.

Even one of Snap’s underwriters, Morgan Stanley, has gone negative on the stock. Analysts at the firm recently slashed their price target on SNAP stock $28 to $16 … and noted intense competitive threats from Facebook.

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Article printed from InvestorPlace Media, http://investorplace.com/2017/07/the-5-best-and-5-worst-tech-stocks-to-buy-now/.

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