Are Tech Stocks Set to Crash in a Recession? Here are 7 to Sell Now
Tech stocks have been driving the market up, but could they come crashing down in a recession? Analysts are warning about overvalued tech darlings, urging investors to consider safer assets like dividend stocks and Treasury yields. Here are seven tech stocks to sell before the potential plunge:
1. Palantir (PLTR): While Palantir has strong revenue growth, its high valuation and potential revenue deceleration make it a risky bet in a downturn.
2. Coinbase (COIN): With ties to the volatile crypto market, Coinbase could face significant downside risk in a recession.
3. Robinhood (HOOD): Robinhood’s stock is driven by sentiment-driven trading, making it vulnerable to market swings in a recession.
4. Matterport (MTTR): Despite growth, Matterport’s mounting losses and reliance on external funding make it a risky bet in a recession.
5. C3.ai (AI): C3.ai’s lackluster fundamentals and poor margins could lead to a rude awakening in a recession.
6. Virgin Galactic (SPCE): Virgin Galactic’s financial struggles and cash burn make it a risky stock to hold in a recession.
7. Lucid (LCID): Lucid’s reliance on Saudi investment and competition in the EV market could spell trouble in a recession.
In conclusion, while tech stocks have been on a tear, it’s important to consider the risks of holding them in a potential downturn. Diversifying into safer assets and evaluating the fundamentals of individual stocks can help protect your portfolio in uncertain times.