Volatility on Wall Street has been particularly ugly lately with numerous headwinds bearing down on the market and plenty of tech stocks that were once darlings of the Street have been unable to escape the pain, becoming hot stocks to sell now.
It’s all going wrong for the bulls, with China rejecting President Trump’s trade olive branch (a delay to some of his newly proposed 10% tariffs, specifically on things like Apple’s (NASDAQ:AAPL) iPhone) and refusing to buy U.S. farm products. And the bond market is flashing red alert, with the yield curve inverting badly.
A recession is coming, and the major central banks seems toothless to stop it as — in a repeat of the lead up to the Great Depression — trade tensions become white hot.
All those mega-cap tech stocks that investors have embraced for years are turning down hard as pangs of panic set in. Here are five tech stocks to sell now:
Tech Stocks to Sell: Apple (AAPL)
Trump’s list of tariff delay products seemed pulled straight from Apple’s product catalog. Cellphones and laptops, among other items. But with China not backing down, Trump will likely not have a choice but to respond with threats of even higher tariffs. Things appear set to get worse before they get better.
Apple is uniquely vulnerable to all this, since it depends on China for its transnational supply chain as well as a source of new consumers. Tensions cut both ways: It risks a boycott of its goods in the Middle Kingdom and higher prices on imports for its American buyers. The company will next report results on Oct. 29 after the close. Analysts are looking for earnings of $2.77 per share on revenues of $62.5 billion.
Amazon (NASDAQ:AMZN) shares are threatening to break down below its 200-day moving average after resisting such a move back in June. This sets up a retest of the June-March consolidation range that would mark yet another flirtation with the $1,600-a-share level and caps a two-year consolidation range bounced by $2,000 to the upside.
The company will next report results on Oct. 24 after the close. Analysts are looking for earnings of $4.82 per share on revenues of $68.5 billion. When the company last reported on July 25, earnings of $5.22 missed estimates by 41 cents on a 19.9% rise in revenues.
Social media giant Facebook (NASDAQ:FB) looks set for a test of its 200-day moving average near the $170-a-share level, setting up a fall back to its 200-week moving average near $150 that would be worth a loss of nearly 20% from here. The company has been in the news for yet another bout of privacy concerns on reports it paid contracts to transcribe user audio.
The company will next report results on Oct. 23 after the close. Analysts are looking for earnings of $1.94 per share on revenues of $17.3 billion. When the company last reported on July 24, earnings of $1.99 per share beat estimates by 12 cents on a 27.6% rise in revenues.
Netflix (NASDAQ:NFLX) shares risk a decline back to the late December lows near $240, which would be worth a loss of roughly 20% from here following a failed attempt to climb back up and over its 200-day moving average in late July. Shares have been sliding sideways since the summer 2017 as competitive pressures continue to build as legacy media companies such as Disney (NYSE:DIS) get in on the streaming game.
The company will next report results on Oct. 16 after the close. Analysts are looking for earnings of $1.05 per share on revenues of $5.2 billion. When the company last reported on July 17, earnings of 60 cents per share beat estimates by 5 cents on a 26% rise in revenues.
Remember when everyone was hot for Nvidia (NASDAQ:NVDA) thanks to the hype surrounding bitcoin and other cryptocurrencies? The company’s GPUs were used to “mine” bitcoin and thus caused demand to swell. The company’s processors also offered exposure to rising tech trends like AI and autonomous driving. Thus, a rapid swell in share prices from 2015 to the peak last summer.
Since then, the stock has lost roughly 50% of its value and risks a breakdown below its 200-week moving average, which it hasn’t tested below since early 2013. The company will next report results on Aug. 15 after the close. Analysts are looking for earnings of $1.14 per share on revenues of $2.5 billion. When the company last reported on May 16, earnings of 88 cents beat estimates by 7 cents on a 31% decline in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.