The Nasdaq has rebounded strongly since the start of 2023, gaining more than 10% in the past month. The index has benefited from the positive economic data that showed a slowdown in inflation and consumer spending, easing the pressure on the Federal Reserve to raise interest rates further. However, not all tech stocks have participated in the rally, and some of them are set to face significant challenges in the near future. Here are three tech stocks that investors should consider selling in December.

Endava (DAVA)

Endava (NYSE:DAVA) is a global IT services provider that offers digital transformation, agile development, cloud migration, and automation solutions to clients across various industries. The tech services company has made a number of my sell lists this year. Given the stock’s continued underperformance, I believe the company deserves another spot. While Endava has benefitted in recent years from many other companies outsourcing certain tasks to tech or business services companies, the company has struggled to acquire new customers and upsell to existing ones. Thus, top-line growth of quarterly revenue has stalled throughout 2023.

While the global economy is set to avoid a recession in 2024, there will be more economic cooling, which could continue to make it difficult for DAVA’s share price in the near and medium term.

Envestnet (ENV)

Envestnet (NYSE:ENV) is a provider of wealth management technology and services to financial advisors and institutions. The company reported a 3% increase in revenue and a 24% increase in adjusted net income for the third quarter of 2023. In particular, Envestnet experienced a sluggish 9% increase in asset-based revenue and a modest decline in its subscription services revenue. These results followed a trend seen earlier in the year when the company reported second-quarter results and missed Wall Street analysts’ revenue estimates.

The company has blamed this lackluster growth on “stubbornly low net industry asset flows,” which just means there aren’t enough investors interested in putting cash on the platform as they were in prior years. Envestnet’s shares have fallen more than 38% from the start of the year, and if there aren’t significant improvements in the broader economic environment, the platform could have to endure slower growth in the coming quarters.

DocuSign (DOCU)

DocuSign (NASDAQ:DOCU) is a provider of cloud-based electronic signature and agreement management solutions. The company experienced robust double-digit growth during the pandemic and the years preceding it, as many businesses looked to digitize a number of everyday processes, including signing contracts with new clients and onboarding new employees. The pandemic years are over now, and the macroeconomic environment has remained uncertain. As a result, DocuSign’s annual revenue growth halved in their fiscal year 2023 when compared to their fiscal year 2022, and revenue growth has continued to underwhelm throughout FY’2024.

In order to boost growth, DocuSign would have to deploy more products or product capabilities to customers. However, in the current selling environment, that just may be too much of a tall order to ask.

DOCU shares have plummeted more than 22% YTD.

On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.