Technology stocks have been on the rise, but not all tech stocks are winners. While the Nasdaq index has been hitting record highs, many tech companies are struggling and underperforming. For every successful tech stock like Nvidia (NVDA), there are many others dragging down investor portfolios.
Recent earnings reports have not been kind to several tech companies, causing their shares to slide lower. These are tech stocks that investors should consider selling to avoid further losses. Let’s take a look at three such tech stocks that may continue to tumble:
1. BlackBerry (BB):
BlackBerry, once a smartphone maker turned cybersecurity company, reported a significant increase in net loss in the first quarter of this year. The company’s revenue also took a hit, declining by 61% compared to the previous year. BlackBerry is now in the process of dividing its cybersecurity and IoT divisions, while also cutting costs by eliminating jobs and closing offices. Unfortunately, BlackBerry’s shares have declined by 50% over the past year and are currently trading as a penny stock.
2. Riot Platforms (RIOT):
Riot Platforms, a Bitcoin miner, recently announced that it is abandoning its pursuit of rival Bitfarms after its takeover offer was rejected. The company is now engaged in a boardroom battle with Bitfarms, which is weighing on RIOT stock. RIOT stock is down 41% for the year and continues to sink.
3. Micron Technology (MU):
Micron Technology, a data storage company, saw its stock fall 7% after reporting earnings that matched Wall Street forecasts. While the company’s AI business is thriving, its smartphone and PC units are struggling due to weak global demand. Despite the post-earnings drop, MU stock had doubled in price over the past year.
In conclusion, it’s essential for investors to be cautious when investing in tech stocks, as not all companies are performing well. Selling troubled tech stocks may be necessary to avoid further losses in your investment portfolio.