5 Large-Cap Tech Stocks Leading the December Meltdown

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tech stocks - 5 Large-Cap Tech Stocks Leading the December Meltdown

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The month is on track to be an awful end to a forgettable year. So far, it has been the worst December since 1931. And according to Deutsche Bank, 2018 is set to be worst year for markets broadly since records started in the 1920s as pretty much everything — stocks, bonds, commodities and corporate credit — has fallen.

The shock of all this is made worse by the fact investors were lulled into a false sense of security by the easy gains of 2017, which was one of the best years ever for Wall Street. This was led mainly by the performance of mega-cap tech stocks.

These same stocks are rapidly losing altitude now as investors realize momentum works to the downside just as well as it does to the upside. Here are five tech stocks to sell now:

Microsoft (MSFT)

tech stocks to sell now: Microsoft (MSFT)Microsoft (NASDAQ:MSFT)  stock was among the last of the large-cap tech stocks to succumb to the downside pressure. But MSFT stock couldn’t resist forever, and it has finally, after months of flirtation, fallen belowits 200-day moving average — the first such breakdown since the summer of 2016. While the company has been successful in its push to the cloud, it’s not immune to the forces of multiple retrenchment, corporate capex slowdowns and risk-off sentiment.

MSFT will next report results on Jan. 23. Analysts are looking for earnings of $1.09 per share on revenues of $32.2 billion. When the company last reported on Oct. 24, earnings of $1.14 beat earnings by 18 cents per share on an 18.5% rise in revenues.

Apple (AAPL)

tech stocks to sell now: Apple (AAPL)Apple (NASDAQ:AAPL) stock, which topped the charts with a $1-trillion-plus market capitalization just a few months ago, has since suffered a 33% decline from its early October high. This marks a return to levels last seen in February amid rising doubts over its iPhone business. Not only have sales of the new iPhone XS and XS Max been underwhelming (forcing the company to adopt a more discount focused sales strategy), but overseas demand is weakening as well.

AAPL will next report results on Jan. 31 after the close. Analysts are looking for earnings of $4.66 per share on revenues of $91.9 billion.

Amazon (AMZN)

tech stocks to sell now: Amazon (AMZN)Amazon (NASDAQ:AMZN) stock, which also topped a $1 trillion market cap earlier this year, is threatening a breakdown from a three-month trading range to cap a decline of 30% from its early September high. The big risk for the company has been President Trump’s threat to raise the company’s shipping cost via the U.S. Postal Service, which would be a direct hit to the company’s already thin profit margin on retail sales (vs. its more profitable Amazon Web Services cloud-computing business).

AMZN will next report results on Jan. 24 after the close. Analysts are looking for earnings of $5.5 per share on revenues of $73.9 billion. When the company last reported on Oct. 25, earnings of $5.75 beat estimates by $2.66 on a 29.3% rise in revenues.

Facebook (FB)

tech stocks to sell now: Facebook (FB)

It has been nothing but more bad news for Facebook (NASDAQ:FB) stock fans this week, with reports of another data scandal (the company allegedly shared private messages with other tech companies) and the filing of a government lawsuit related to the prior Cambridge Analytica scandal. The company has tried to defend itself, but the stain on its reputation remains.

FB stock will next report results on Jan. 29 after the close. Analysts are looking for earnings of $2.2 per share on revenues of $16.4 billion. When the company last reported on Oct. 30, earnings of $1.76 beat estimates by 32 cents per share on a 32.9% rise in revenues.

Nvidia (NVDA)

tech stocks to sell now: Nvidia (NVDA)Nvidia (NASDAQ:NVDA) shares have been hit by the broad selling pressure affecting semiconductor stocks — which are the hardware building blocks of our connected world — as well as specific headwinds from things like the decline in bitcoin and other cryptocurrency prices in recent months. Shares are down a whopping 54% from their early October high and will be hard-pressed to recover quickly as other catalysts like AI, machine learning and self-driving cars look like the over-promises of an extended bull market.

NVDA will next report results on Feb. 14 after the close. Analysts are looking for earnings of $1.2 per share on revenues of $2.7 billion. When the company last reported on Nov. 15, earnings of $1.84 missed estimates by 8 cents on a 20.7% rise in revenues.

As of this writing, William Roth did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/12/large-cap-tech-stocks-leading-the-december-meltdown/.

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