Time to Dump These Overhyped Tech Stocks

Tech stocks have come roaring back in 2023. But after the stunning rebound, some tech names have little room to run. In addition to industry-specific concerns, the technology sector faces headwinds from rising interest rates and a central bank that hasn’t finished its fight against inflation. As such, now seems like a good time to lock in gains on certain tech stocks that have rallied sharply this year.  

Now more than ever, it’s crucial to be selective with your investments and avoid the tech stocks that look vulnerable. Our expert team has analyzed the market and identified specific tech stocks that should be cautiously approached. In particular, these three tech stocks look especially risky and may see severe downside in the coming days and weeks. Don’t let the recent tech sector rebound lure you into making hasty investment decisions. Instead, use our watchlist to make informed choices and avoid the tech stocks that could threaten your precious long-term returns.

Bigbear.ai Holdings (BBAI) 

In 2023, BBAI stock is up a startling 230%, with shares advancing from penny stock territory to more than $3/share today. But the current hype cycle around consumer AI products isn’t likely to move the needle for Bigbear.Ai’s business, considering it’s far from a consumer-facing product like ChatGPT. The company has historically struggled to reach profitability from its operations and the stock’s recent run seems dramatically overblown.

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SoFi Technologies (SOFI)

SOFI has stacked on 16% in 2023, but the rebound may be fleeting. Shares have already started to fall back toward pre-earnings price levels. In the months ahead, if current economic challenges worsen or further challenges arise regarding student loans, the impact on revenue could place additional pressure on the stock.

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Uber Technologies (UBER)

Uber shares surged following its Feb. 8 earnings call. The ride-share giant reported substantial numbers, and management provided an upbeat outlook for the current quarter. However, the stock has already given back some of those gains amid recession concerns. UBER’s current valuation may be overly optimistic about subsequent quarterly results. Another big run may not be in store for the ticker anytime soon.

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