Tech stocks to sell could see sharp declines in value in coming months
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Tech stocks are not invincible.artificial intelligence), many tech stocks are struggling and currently appear vulnerable. Warning signs are emerging at many large technology companies and are clearly visible in quarterly financial statements, proxy votes, and various revenue and delivery data points.
Being aware of developing problems at a company is important for investors to avoid underperforming stocks that could drag their portfolios down and put them in the red. Luckily, there is a wealth of news and information about publicly traded companies that investors can understand and make informed decisions about the stock.
Here are three tech stocks to sell in July before they crash.
Tesla (TSLA)
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Investors buy shares Tesla (Nasdaq:TSLATesla shares rose more than 15% after the company released its latest delivery numbers, but the stock is rising because the data wasn’t as bad as feared. Tesla’s deliveries for the second quarter totaled 443,956 vehicles.
Second-quarter deliveries beat Wall Street’s expectations of 439,000 vehicles. But despite beating analysts’ expectations, Tesla’s second-quarter deliveries fell 4.8% year over year as sales continued to decline. General Motors (New York Stock Exchange:GMTesla’s main competitor, Tesla Motors, said its electric vehicle sales rose 40% in the second quarter of this year compared with the same period last year.
Tesla is scheduled to report its second-quarter earnings on July 23. This is increasingly shaping up to be a make-or-break quarter for Tesla. If the company fails to meet Wall Street targets, TSLA stock could plummet.
Micron Technology (MU)
Recent prints Micron Technology (Nasdaq:M) disappointed, sending its shares down more than 5%. The data-storage company reported decent results for the recently ended quarter, but its outlook for the future was in line with Wall Street expectations, giving investors more to look forward to. This was especially true after MU shares had risen more than 60% this year on hopes of big growth from AI.
Micron, which makes computer memory and data storage products, said it expects earnings per share 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 AI boom because its advanced memory is used in AI microchips and processors. But Micron’s smartphone and personal computer (PC) business units have struggled with weak global demand, offsetting AI gains.
Salesforce (CRM)
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Another blow to cloud computing companies Salesforce (New York Stock Exchange:Customer Relationship ManagementSalesforce.com shareholders voted against the company’s executive compensation plan, including that of CEO Marc Benioff. The opposition follows public concerns from a shareholder advisory group about the large amounts of stock-based compensation given to Salesforce.com executives, including Benioff. Benioff received total compensation of $39.6 million last year, up from $29.9 million the year before.
In January, Salesforce’s board of directors awarded Benioff $20 million in stock in recognition of the company’s “strong performance during the fiscal year.” However, shareholders voted against the stock award, citing CRM’s weak performance and disappointing financial results. Salesforce recently missed its quarterly revenue target for the first time since 2006. Additionally, Benioff is already one of Salesforce’s largest shareholders, with more than $8 billion in stock.
While the annual general meeting vote is non-binding and the board is not required to follow it, the situation indicates further cracks are emerging at Salesforce, whose shares are flat so far in 2024 and well below their 23% gain so far in 2025. Nasdaq Composite Index index.
As of the date of publication, Joel Baglore 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 in accordance with InvestorPlace.com’s publishing guidelines.
On the date of publication, the editor in charge did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
