Stocks just can’t catch a break.
Despite aggressive stabilization efforts by Chinese authorities, ongoing weakness in crude oil has kept the pressure on U.S. equities. A big intraday rally attempt on Tuesday morning has been turned around as I write this, pushing the Dow Jones Industrial Average back into negative territory before a nudge back into the black.
Breadth measures remain extremely weak, with the Russell 2000 small-cap index falling into an outright bear market down more than 20% from its June highs. The NYSE Composite has returned to levels last seen in 2013.
One of the few areas of the market that have been resisting the downside pressure has been big-cap technology stocks. Now that the selling has become a wave of disillusionment, these issues are being pushed lower as well. For those looking at quick short-side opportunities or simply wishing to avoid losses, we have five tech stocks to keep an eye on.
As a note, a few of these tech stocks are former momentum favorites that are poised for big losses, while a couple are one-time turnaround plays that look ready to crater to fresh lows.
Big Tech Stocks to Avoid: Yahoo! Inc. (YHOO)
Yahoo’s (YHOO) honeymoon with CEO Marissa Meyer, the photogenic ex-Googler, has officially ended as the tailwinds from the initial public offering of Alibaba (BABA) have faded and the spinoff plans have been bungled by tax complications and the fading share price of BABA. The New York Times recently reported on plunging morale after more than a third of its workforce has left over the past 12 months.
We’ll know more when the company reports results on Jan. 25 after the close. Analysts are looking for earnings of 13 cents per share on revenues of $948 million. Edge Pro subscribers are enjoying a 47% gain on their Jan $31 puts.
Big Tech Stocks to Avoid: Microsoft Corporation (MSFT)
Investors are cooling on Microsoft (MSFT) after the well-received rollout of Windows 10 (well, when something is free what do you expect?) is giving way to new concerns about the company’s mobile strategy.
The company will report Q4 results on Jan. 28 after the close. Analysts are looking for earnings of 70 cents per share on earnings of $25.21 billion.
Big Tech Stocks to Avoid: Facebook Inc (FB)
Facebook Inc (FB) shares are perched precariously in a three-month trading range centered near $105 as concerns grow over near-term margins as the company pushes ahead with its Oculus VR headset launch. A retest of the 200-day moving average looks likely as the company’s latest obsession — making its Messenger app a replacement for SMS texts — looks like a distraction.
The company will report results on Jan. 27 after the close. Analysts are looking for earnings of 67 cents per share on revenues of $5.4 billion. Edge Pro subscribers are enjoying a 62% gain on their January $102 puts.
Big Tech Stocks to Avoid: Intel Corporation (INTC)
Intel (INTC) shares are dropping away from a multimonth resistance range near $35 as it becomes clear the Windows 10 upgrade cycle didn’t encourage a surge of new PC purchases. With tablet sales also cooling, demand for semiconductors going forward will depend on the rollout of “Internet of Things” devices — which, from a margin perspective, may not be such a great thing for Intel. Collaborations with ESPN and Lady Gaga look like distractions.
The company will report results on Jan. 14 after the close. Analysts are looking for earnings of 63 cents per share. Edge Pro subscribers are enjoying a 92% gain on their Jan $33 puts.
Big Tech Stocks to Avoid: HP Inc (HPQ)
After a temporary lift in the autumn on excitement over the company’s split, with enterprise products now housed in a separate entity, the long-term downtrend that started at the end of 2014 for HP Inc (HPQ) resumed in earnest with shares testing to fresh lows not seen since late 2013. Printer and PCs just aren’t hot product categories anymore, and recent innovations like the Sprout haven’t had traction.
Analysts are looking for earnings of 36 cents per share on revenues of $12.2 billion.