Dump these 5 tech stocks in 5 high-profile sectors

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Dump these 5 tech stocks in 5 high-profile sectors, says JeffReevesIP

With four months and one very important earnings season behind us, the bulls in the U.S. stock market continues to run rampant — and the tech sector is at the head of the herd.

But when it comes to where you put your money, there are some tech stocks that should simply be avoided at all costs right now. Here are five of them, in five high-profile subsectors of tech. Investors cannot confuse the promise of broad food-delivery trends with an investment case for Grubhub stock. Even after “good” earnings it has yet to revisit the $70 mark where it traded as recently as March, so there’s little reason to hang on and hope it will get better from here.

Some investors are cheered by new CEO Bob Swan as he makes “hard choices,” but lowering expectations and exiting struggling businesses is not a long-term plan. The bottom line is that Activision needs to reverse the decline in its legacy products and continue to innovate. But sadly, fewer staffers on key franchises and lingering brand tarnish around February’s layoffs seem likely to prevent that.

 

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