These tech stocks for sale could see their prices fall sharply in the coming months
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Tech stocks are not invincible. Despite the hype around artificial intelligence (AI), many tech stocks are struggling and appear vulnerable at the moment. Warning signals are being raised by many leading tech companies and can be clearly seen in quarterly financial statements, proxy votes, and various sales and shipment data points.
It is important to be aware of the troubles brewing in companies to avoid underperforming stocks that can drag down a portfolio and leave it in the red. Fortunately, there is plenty of information and news about listed companies that investors can digest and use to make informed stock decisions.
Here are three tech stocks to sell in July before they crash.
Tesla (TSLA)
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Investors buy shares of You’re here (NASDAQ:TSLA) after the company released its latest delivery numbers, Tesla may want to put on the brakes. While TSLA stock gained more than 15% after the company released second-quarter electric vehicle (EV) delivery numbers, the stock is up because the data wasn’t as bad as feared. For the second quarter, Tesla’s deliveries totaled 443,956 vehicles.
The number of deliveries in the second quarter exceeded Wall Street’s forecast of 439,000 deliveries. But despite beating analysts’ expectations, Tesla’s second-quarter deliveries were down 4.8% from a year earlier, amid a continued decline in sales. General Motors (NYSE:DG), one of Tesla’s main competitors, reported that its electric vehicle sales increased 40% year-over-year in the second quarter of this year.
Tesla is set to announce its second-quarter financial results on July 23. It’s increasingly looking like this could be a make-or-break quarter for Tesla. If the company fails to meet Wall Street’s targets, TSLA stock could crash.
Micron Technology (MU)
The recent impression of Micron Technology (NASDAQ:MU) was a disappointment, sending its stock price down more than 5%. While the data storage company posted decent results for its recently completed quarter, forward guidance that was in line with Wall Street expectations left investors wanting more. This was especially true after MU stock gained more than 60% year-to-date on expectations of strong AI-fueled growth.
Micron, which makes computer memory and data storage products, said it expects EPS of $1.08 on revenue of $7.6 billion for the calendar second quarter. Analysts had expected earnings of $1.05 on revenue of $7.6 billion. Micron is benefiting from the current boom in artificial intelligence as its advanced memory is used with microchips and AI processors. However, Micron’s smartphone and personal computer (PC) business units are facing weak global demand, which is offsetting gains in artificial intelligence.
Salesforce (CRM)
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The latest blow to a cloud computing company Salesforce (NYSE:CRM) is that its shareholders voted against the company’s executive compensation plan, including that of CEO Marc Benioff. The rejection comes after shareholder advisory groups publicly expressed concerns about the large stock bonuses awarded to Salesforce executives, including Benioff. Benioff received $39.6 million in total compensation last year, up from $29.9 million the year before.
In January, Salesforce’s board of directors awarded Benioff a $20 million stock award in recognition of the company’s “strong financial performance during the fiscal year.” However, shareholders disagreed with the stock award, citing CRM’s underwhelming stock performance and disappointing financial results. Salesforce recently missed its quarterly revenue target for the first time since 2006. Additionally, Benioff is already among Salesforce’s largest shareholders, with a stake worth more than $8 billion.
While the AGM vote is not binding and the board is not required to follow it, the situation shows that new cracks are forming at Salesforce. The company’s stock has been flat so far in 2024, far behind its 23% gain since the start of the year. Nasdaq Composite Index hint.
As of the date of publication, Joel Baglole did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the InvestorPlace.com Publishing Guidelines.
As of the date of publication, the responsible editor did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
