Tech Stock Tumble Ahead: 3 Companies to Dump Now!

Stocks to sell

While it is true that technology stocks are leading the market higher, not every tech stock is a winner. As the Nasdaq index continues to hit record highs, many of its components are slumping badly and underperforming. The reality is that for every winner like Nvidia (NASDAQ:NVDA) stock, there are dozens of losers dragging down investor portfolios.

The situation seems to have gotten worse following a string of recent earnings reports by tech companies. Shares of several notable names are sliding lower after reporting big earnings misses or delivering disappointing guidance. For investors, these have become tech stocks to avoid. Anyone holding onto these troubled names should sell ASAP.

Let’s examine three such tech stocks that may tumble even further.

BlackBerry (BB)

Source: Poetra.RH /

Things are going from bad to worse at technology company BlackBerry (NYSE:BB). The former smartphone maker turned cybersecurity play just reported that its net loss in this year’s first quarter grew by nearly 300%. BlackBerry posted a Q1 net loss of $42 million. That’s 282% greater than a net loss of $11 million recorded a year earlier. The latest result amounted to a loss of 7 cents a share compared to a loss of 2 cents the previous year.

The widening loss comes as sales at BlackBerry continue to deteriorate. In Q1, the company’s revenue totaled $144 million, down 61% from $373 million a year earlier. The bad print comes as BlackBerry prepares to divide its cybersecurity business and its IoT division. Also, the company is cutting costs as its financial situation deteriorates. Earlier this year, BlackBerry eliminated 200 jobs and closed six of its 36 global offices.

Unfortunately, BlackBerry’s shares have declined 50% over the past 12 months and currently trade as a penny stock.

Riot Platforms (RIOT)

Source: rafapress /

A selloff in Riot Platforms (NASDAQ:RIOT) is accelerating after the Bitcoin (BTC-USD) miner announced that it is abandoning its pursuit of rival Bitfarms (NASDAQ:BITF).

Riot Platforms said it is giving up its proposed takeover of Bitfarms after its latest offer was rejected by the company. RIOT management has said that they want to acquire Bitfarms to create the world’s largest publicly traded Bitcoin miner.

Further, consolidation within the crypto mining sector has ramped up after Bitcoin underwent a halving event this April. That is the time that the available supply of BTC, and the rewards for mining it, are reduced by 50%. Riot Platforms is now engaging in a boardroom battle with Bitfarms, having nominated three people to replace current Bitfarms board members. Specifically, the company can propose new board members since it is Bitfarms’ largest shareholder with a 15% ownership stake in the company.

So, executives at Riot Platforms had previously called for the removal Bitfarms’ interim Chief Executive Officer (CEO) Nicolas Bonta. Where the battle goes from here is unclear. But the entire situation is weighing on RIOT stock, which is down 41% on the year and sinking.

Micron Technology (MU)

Source: Charles Knowles /

The shine is off Micron Technology (NASDAQ:MU) after the data storage company reported forward guidance that was in line with Wall Street forecasts. Despite beating Q1 estimates on the top and bottom lines with its latest earnings, investors appear disappointed. Micron’s revenue forecast matched, rather than topped, analyst expectations. MU stock fell 7% the day after its print.

True, Micron Technology is benefitting from the current boom in artificial intelligence (AI). Its advanced memory is used with graphics processing units (GPUs) made by companies such as Nvidia. However, while MU’s AI business is thriving, the company said in its earnings statement that its smartphone and personal computer (PC) units are struggling with weak global demand.

Micron Technology, which manufacturers computer memory and data storage products, said it expects EPS of $1.08 on revenue of $7.6 billion for the current second quarter of the calendar year. Analysts on Wall Street had been looking for earnings of $1.05 on revenue of $7.6 billion. The post-earnings fall in MU stock comes after the share price doubled in the last year.

On the date of publication, Joel Baglole held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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