U.S. equities are suffering a wild ride on Friday, with the Dow Jones Industrial Average losing more than 350 points in early trading after headlines crossed that former National Security Advisor Michael Flynn would testify against President Trump and other White House officials amid an ongoing probe into Russia’s possible involvement in the 2016 election.
The result was a “bearish engulfing” of Thursday’s massive tax-deal surge and the reappearance of market volatility after a long slumber.
A number of big-cap technology stocks are thus looking quite vulnerable here. They’ve crumbled not only on the Flynn/Trump headlines and possible implications for the GOP’s tax cut efforts, but on an intense sector rotation dynamic seen earlier this week (with tech stocks sold heavily in favor of transports).
Here are five tech stocks to sell now:
Tech Stocks to Sell: Apple
Apple Inc. (NASDAQ:AAPL) shares are consolidating within the confines of a three-month trading range, but they look vulnerable to a breakdown. A breakdown would test the 50-day moving average and possibly the 200-day average, which would be worth a 12% decline from here. UBS analysts recently published a note highlighting survey results showing weaker-than-expected buying intentions for the iPhone X.
AAPL will next report results on Feb. 1 after the close. Analysts are looking for earnings of $3.77-per-share on revenues of $86.2 billion. The company last reported on Nove. 2, with earnings of $2.07-per-share beating estimates by 20 cents on a 12.2% rise in revenues.
Tech Stocks to Sell: AMD
Advanced Micro Devices, Inc. (NASDAQ:AMD) shares are dropping out of a three-month consolidation range, rising a fall to the early May low near $10. This caps a decline of one-third from the highs set this summer. A breakdown here would undermine the year-long sideways range between $10 and $15 and risk reversing the epic rally out of the lows near $2 that started in early 2016. All of this is occurring as the craze around crypto-mining dissipates.
AMD will next report results on Jan. 23 after the close. Analysts are looking for earnings of 2-cents-per-share on revenues of $1.4 billion. When the company last reported on Oct. 24, earnings of 10 cents beat estimates by 2 cents on a 25.7% rise in revenues.
Tech Stocks to Sell: Facebook
Facebook Inc (NASDAQ:FB) shares are testing below their 50-day moving average for the first time since October, setting up a run at the 200-day moving average, which hasn’t been touched since the beginning of the year. FB shares have been drifting lower for weeks after management warned of higher expenses with an anticipated doubling of capital expenditures as the company invests in security, video and AI.
FB will next report results on Jan. 31, after the bell. Analysts are looking for earnings of $1.93-per-share on revenues of $12.5 billion. When the company last reported on Nov. 1, earnings of $1.59 beat estimates by 31 cents on a 47.3% rise in revenues.
Tech Stocks to Sell: Nvidia
Nvidia Corporation (NASDAQ:NVDA) shares have lost roughly 10%, and are now closing below their 50-day moving average for the first time since August. Mizuho analysts recently warned that GPU demand for cryptocurrency mining will be less meaningful in 2018 as the industry moves towards software-based Proof of Stake evidence.
NVDA will next report results on Feb. 8 after the close. Analysts are looking for earnings of $1.13-per-share on revenues of $2.7 billion. When the company last reported on Nov. 9, earnings of $1.33-per-share beat estimates by 26 cents on a 31.5% rise in revenues.
Tech Stocks to Sell: eBay
eBay Inc (NASDAQ:EBAY) shares are down 10% from their recent high, cutting below their 200-day moving average for the first time since the summer of 2016. EBAY is struggling despite a strong performance by online retailers during Cyber Monday. Some of this could be related to the deflation of hype surrounding an agreement with the NFL to designate its StubHub subsidiary as the “NFL Authorized Ticket Resale Marketplace.” NFL viewership and game attendance is waning and some investors are less impressed.
EBAY will next report results on Jan. 17 after the close. Analysts are looking for earnings of 49-cents-per-share on revenues of $2.6 billion. When the company last reported on Oct. 18, earnings of 48-cents-per-share beat estimates by 8.7%.
Anthony Mirhaydari is the founder of the Edge (ETFs) and Edge Pro (Options) investment advisory newsletters. Free two- and four-week trial offers have been extended to InvestorPlace readers.
