3 beaten-down tech stocks to avoid at all cost

Technology stocks have had a difficult period this year as concerns about high-interest rates continue. The Nasdaq 100 index has crashed by about 30% from its all-time high and is trading at the lowest since November 2020. While many tech stocks like Salesforce and Adobe will bounce back easily, many others will have a tough time. Here are some of the top technology companies that will find it difficult to bounce back.

Snap

Snap (NYSE: SNAP) stock price has been in a deep sell-off after peaking at $83.41 in September last year. The stock has declined by more than 73% from its highest point in 2021. And today, the stock has plummeted by over 30% in the pre-market session. This decline brings the company’s market cap to about $33 billion.

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Snap is an excellent social media company that has seen a lot of growth in the past few years. It also has a strong market share in its small niche since it targets many young people. However, there is a likelihood that the company will see slow growth as companies slash their marketing budgets due to inflation.

In addition, the company is facing strong competition from a company like TikTok that has grown its market share in the past few years. Technically, speaking, the Snap stock price will likely continue falling in the coming months.

Carvana 

Carvana (NYSE: CVNA) stock price has been in a strong downward trend for months. The shares peaked at an all-time high of $377 in 2021. Since then, the company’s stock price has declined by more than 92%, bringing its market cap to about $5 billion.

Carvana faces numerous challenges. First, it was recently barred to operate in Illinois, where it was accused of title delays. Second, with car prices surging, there is a likelihood that the company will see a slowdown in growth. Third, there are concerns about the firm’s profitability. 

Therefore, while Carvana has a good reputation, there is a possibility that the company’s stock will find it challenging as interest rates rise.

Peloton

Peloton (NASDAQ: PTON) stock price has had a strong fall from grace in the past few months. After peaking at $171 in January 2021, the shares have declined by more than 90% to below $15. As a result, investors have seen their holdings tumble by more than $30 billion.

Peloton is transitioning its business from hardware to software. While this transition could be successful, it is simply too early to tell. Therefore, the stock will have a hard time recovering in the near term.

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