4 “New” Tech Stocks That Are Sucking Wind

These four tech stocks are in deep trouble

By Anthony Mirhaydari, InvestorPlace Market Strategist

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Overall, U.S. equities continue to languish as the large-cap rebound off of the 200-day moving average loses steam and the 50-day moving average proved intractable resistance. If there was any doubt about whether computer trading algorithms dominate modern markets — as human traders take a backseat — the slavish commitment to these technical trading levels proves it.

Amid the chaos, a number of popular “new” tech stocks and recent IPOs are rolling over badly, suggesting now is the time for the bulls to bail ahead of deeper declines. Some have been perennial takeover targets. Others represented hopes the IPO window was reopening. And one was knocked down by a comment from a member of the Kardashian clan.

Here are four tech stocks to sell now:

Tech Stocks to Sell: Pandora (P)

Tech Stocks to Sell: Pandora (P)

Pandora Media Inc (NYSE:P) shares are down nearly 8% after the company reported disappointing results on Wednesday. The company continues to struggle after losing its first-mover advantage in the streaming music space. It is now being squeezed by everything from Spotify to Tidal and the titans that are Amazon.com, Inc. (NASDAQ:AMZN) and Apple Inc. (NASDAQ:AAPL). Analysts at B. Riley noted that ad revenues and users dropped on a year-over-year basis as management struggles to recapture the status the service enjoyed years ago.

The company will next report results on May 23, after the close. When the company last reported on Feb. 21, a loss of 21-cents-per-share missed estimates by 14 cents on a 0.6% rise in revenues.

Tech Stocks to Sell: Roku (ROKU)

Tech Stocks to Sell: Roku (ROKU)

Roku Inc (NASDAQ:ROKU) shares, which roughly quadrupled from its pre-IPO price, have since suffered losses of roughly a third from their December highs. This comes as the forward outlook is dimming because TV manufacturers are increasingly including smart-box functionality, reducing the need for separate Roku boxes.

Results on Wednesday were solid, but guidance disappointed. Analysts were out defending the name today, with Needham analysts pointing out the attractive valuation on the stock relative to Netflix.com, Inc. (NASDAQ:NFLX), pointing to similar growth credentials. But expectations had simply grown too much.

The company will next report results on May 23 after the close. The company last reported on Feb. 21, where earnings of 6-cents-per-share beat estimates by 17 cents on a 27.8% rise in revenues.

Tech Stocks to Sell: Stich Fix (SFIX)

Tech Stocks to Sell: Stich Fix (SFIX)

Stitch Fix Inc (NASDAQ:SFIX) shares are threatening to fall out of their post-IPO range with a move below the $19-a-share threshold. Investors are losing interest and faith as the wardrobe-in-a-box company is threatened by competitors like AMZN moving in on its turf. Enthusiasm faded after the company issued its first earnings report as a public company back in December, with forward guidance disappointing.

The company will next report results on March 12, after the close. Analysts are looking for earnings of 6-cents-per-share on revenues of $291.3 million. When the company last reported on Dec. 19, earnings of 4-cents-per-share beat estimates by a penny on a 25.3% rise in revenues.

Tech Stocks to Sell: Snap (SNAP)

Tech Stocks to Sell: Snap (SNAP)

Snap Inc (NYSE:SNAP) is sliding 8% on Thursday, threatening to fill its post-earnings gap move higher that took prices off of the post-IPO consolidation bound by $12 on the low end.

This comes after Kylie Jenner disclosed she stopped using Snapchat in response to the widely publicized update that was designed to make the service friendlier to new users. The fact that Jenner used Twitter Inc’s (NYSE:TWTR) platform to announce the news just rubbed salt in the wound.

The company will next report results on May 8, after the close. Analysts are looking for a loss of 33-cents-per-share on revenues of $243 million. When the company last reported on Feb. 6, a loss of 13-cents-per-share beat estimates by 3 cents on a 72.4% rise in revenues.

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.


Article printed from InvestorPlace Media, https://investorplace.com/2018/02/4-new-tech-stocks-that-are-sucking-wind/.

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