U.S. equities were dribbling lower on Monday in response to a tepid start to the Q1 earnings season. Goldman Sachs (NYSE:GS) kicked things off with a positive earnings surprise but no revenue growth. That obviously raised some questions about the quality of the earnings beat, which was driven by a lower tax rate and cost cutting measures.
Adding to the downside pressure is some profit taking in the hot semiconductor space, a testing of technical support levels on the major large-cap indices (including 2,900 on the S&P 500) and growing impatience with a lack of a U.S.-China trade deal.
As a result, a number of hype-reliant technology stocks are rolling over badly. Here are four to sell now:
Tech Stocks to Sell: Fitbit (FIT)
Fitbit (NYSE:FIT) shares fell hard on Monday, down nearly 4% in mid-day trading before closing down 2.45%. Watch for a return to the late-December lows, which would be worth a loss of more than 16% from here. The decline comes despite a recent upgrade by DA Davidson analysts.
The company is expected to next report results on May 1 after the close. Analysts are looking for a loss of 22 cents per share no revenues of $259.7 million. When the company last reported on Feb. 27, earnings of 14 cents per share beat estimates by seven cents on a 0.1% rise in revenues.
Tesla (TSLA)
Tesla (NASDAQ:TSLA) shares were again under pressure Monday, continuing the downtrend that started in December and has resulted in a return to the lows seen back in October. The company is again at the epicenter of major drama, with CEO Elon Musk spending hours on Twitter (NYSE:TWTR) over the weekend attacking his critics and issuing more material guidance and operational information — likely in violation of his agreement against such behavior with the SEC.
The company will next report results on April 24 after the close. Analysts are looking for a loss of 59 cents per share on revenues of $5.4 billion.
When the company last reported on Jan. 30, earnings of $1.93 per share missed estimates by nine cents on a 119.8% rise in revenues.
Netflix (NFLX)
Netflix (NASDAQ:NFLX) stock is falling out of a four-month consolidation range to challenge support near its 200-day moving average. A breakdown here would likely result in a test of the early January gapped rally. Shares have been under serious pressure in the wake of the unveiling of Disney’s (NYSE:DIS) direct-to-consumer streaming service, Disney+, as well as the launch of Apple’s (NASDAQ:AAPL) own streaming service.
The company is scheduled to next report results on April 16 after the close. Analysts are looking for earnings of 57 cents per share on revenues of $4.5 billion. When the company last reported on Jan. 17 , earnings of 30 cents per share beat estimates by six cents on a 27.4% rise in revenues.
Roku (ROKU)
Roku (NASDAQ:ROKU) stock has fallen once more below its 50-day moving average, reversing its late-February rally and setting up a challenge of its 200-day moving average. Watch for a fall back to the late-December lows, which would be worth nearly a 50% decline from here. Shares were recently downgraded to “sell” by analysts at Citigroup, citing competitive pressures in the industry and the stock’s high valuation.
The company is expected to next report results on May 8 after the close. Analysts are looking for a loss of 25 cents per share on revenues of $189.7 million.
When the company last reported on Feb. 21, earnings of five cents per share beat estimates by 2 cents on a 46.4% rise in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.
