Three tech stocks headed for oblivion

Nobody could really blame you if you started shopping for tech stocks to sell because the terrible year for tech stocks just won’t end.

After a very horrible year on the market, tech appeared to be on the rebound in August and gave growth investors some hope. However, the sector is now once again in decline. A well-known tech exchange traded fund, the Invesco QQQ Trust, has lost 15% of its value since August.

Furthermore, there is virtually no sign that the price of IT stocks will recover any time soon. A strong U.S. currency hurts IT companies that rely on imports, and the Russia-Ukraine war will continue to have a negative impact on the world economy. Inflation is at its highest level since the 1980s, forcing the Federal Reserve to keep raising interest rates.

Yes, there are some excellent tech stocks available. However, my Portfolio Grader also recognized some actual dogs. These seven tech stocks should be sold right away.

Tech stocks

One of the earliest organizations to offer customer relationship management services was the enterprise software provider Pegasystems (NASDAQ:PEGA). It is currently utilized in both business and robotic process automation. It provides a software-as-a-service (SaaS) platform driven by AI that assists businesses and government organizations in increasing automation and workflow.

The risk of a recession has a significant impact on PEGA stock. The business recognized in July that the strain put on its customers by weaker global economic development. The stock price, which is down over 70% so far this year and 31% since July, reflects that worry.

Both revenue and profitability were missed in the second quarter’s earnings. Pegasystems reported a loss per share of 38 cents and revenue of $275.34 million. Wall Street anticipated $338.31 million in revenue and a gain of 5 cents per share. The Portfolio Grader has given PEGA stock a “F” grade.

Other Stocks that have no future

The online clothes and fashion retailer Stitch Fix (NASDAQ:SFIX) is having a similarly poor year. The tech stock is down 78% to penny stock status (less than $5 per share), since the economy is becoming tighter and clients of Stitch Fix have less discretionary income to spend on new clothing.

On the surface, Stitch Fix appears to be a fantastic subscription-based business idea. Customers create an online style profile and provide their clothes sizes. Using such information, a stylist chooses a few pieces of apparel and sends them to the clients for purchase or return.

However, the current state of the economy and the fact that many individuals aren’t leaving their houses as frequently as they were before to Covid-19 are two significant factors that are working against SFIX. I have no idea when people will stop needing as many work clothes as they did in 2019.

The company’s fiscal fourth quarter results were once again disappointing. Analysts had predicted $488.79 million in revenue, but only received $481.9 million. Better than the predicted loss of 60 cents per share was an earnings loss of 89 cents per share. The Portfolio Grader also gives the SFIX stock a “F” grade.

We recently did some extensive research on the tech stocks of Intel (NASDAQ:INTC). It was a gloomy image. Intel no longer holds the top spot in the chip industry, and it is unlikely that it will in the near future.

Additionally, according to David Zinsner, CEO of Intel, the personal computer industry is predicted to decline by 10% or perhaps more this year.

Earnings for the second quarter came in at a dismal $15.32 billion, falling short of the Street’s prediction of $17.92 billion. EPS of 29 cents per share was significantly lower than anticipated EPS of 70 cents. The Portfolio Grader has given Intel stock a “F” grade despite its 46% decline so far this year.

The post Tech stocks: 3 of them headed for oblivion? appeared first on FinanceBrokerage.