3 Tech Stocks to Sell in March Before They Crash & Burn
U.S. tech equities sustained a jaw-breaking rally in 2023, with the Nasdaq beating all other indices, accruing a more than 43% return. Big tech and a number of other small-to-mid cap tech stocks have also been on the rise in 2024. The S&P 500 and Nasdaq have risen 7.15% and 8.5% on a year-to-date basis. While equities appear to be in a rally, that does not mean there aren’t any tech stocks to sell that are under pressure during this year’s trading session. Moreover, there are also stocks that have rallied but are at risk of experiencing a sharp sell-off.
Without further ado, below are 3 tech stocks to sell before they crash and burn.
Digital Turbine (APPS)
Digital Turbine (NASDAQ:APPS) is a software company that provides both mobile app delivery and advertising solutions. The company operates primarily through two main business segments: On-Device Solutions and App Growth Platform. With these two business segments, Digital Turbine had been successful in carving out a niche area within the broader ad-tech space. If you live in the United States and decide to buy an Android smartphone from a wireless carrier or directly from a smartphone original equipment manufacturer (OEM), like Samsung, more likely than not, that particular device will boot up with some apps already pre-installed. This is Digital Turbine’s On-Device Solutions business segment at work. The ad-tech company forms partnerships with both wireless carriers and OEMs to deliver mobile apps to end-users. Digital Turbine’s second business enables app developers as well as advertising brands and agencies to create targeted ad campaigns.
Unfortunately for Digital Turbine, the company has continued to deliver lackluster financial figures and weak forecasts. In their Q3 2024 earnings print, the ad-tech company reported another quarter of year-over-year revenue contraction and was not optimistic about the overall macroeconomic environment. This would be the sixth quarter of consecutive revenue contraction. Digital Turbine also issued weak guidance for their full fiscal year 2024.
APPS’s shares are down nearly 60% year-to-date, and without any meaningful improvements in profitability, current shareholders are perhaps better off cutting their losses as soon as possible.
Palantir (PLTR)
Palantir’s (NYSE:PLTR) stock has been on the rise since the company released its AI platform (AIP). The data analytics firm’s AIP can deploy commercial and open-source large language models onto internally held data sets and, from there, recommend business processes and actions. This platform also marked the company’s entrance into the AI race.
Lately, all eyes have been on Palantir’s financial figures. During the third quarter, Palantir’s U.S. commercial business segment increased revenue figures by 37% on a year-over-year basis driven by demand for Palantir’s AIP. Similarly, during the fourth quarter, CEO Alex Karp noted there was strong demand for AI. The company completed 600 pilot tests in 2023.
I’m still of the belief the market is overvaluing Palantir’s shares as an AI stock, despite the company’s AI solution being premature. PLTR has skyrocketed 46% YTD and trades at 75.6x forward earnings, higher than the world’s most valuable AI stock, Nvidia (NASDAQ:NVDA).
Apple (AAPL)
The iPhone maker, Apple (NASDAQ:AAPL) continues to experience weak product demand and international market woes. Ever since Huawei quietly released the Mate 60 Pro handset, the Chinese tech giant has been siphoning market share away from Apple in China. Apple’s sales decline in China has only intensified in 2024. According to Bloomberg, for the first 6 weeks of the year Apple’s iPhone sales declined 24%. This means the iPhone maker’s market share shrunk by 7%, while Huawei significantly increased its own market share. Huawei is number 2 in the China market in terms of smartphone sells, while Apple is tied with Honor for third place.
Moreover, Apple has struggled with product diversification. Not only has its VR headset not performed as well as planned, but the iPhone maker just scrapped its long-awaited Apple Car program. This was supposed to introduce AAPL to the self-driving car market.
Apple looks like a front-runner among tech stocks to sell. AAPL shares are down 10% on a year-to-date basis and could continue to plummet as the iPhone maker’s struggles worsen.
On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
