With the merger war between
) raging on, tech stocks have really been in focus lately. A
spate of merger and acquisition action has prompted a renewed
focus on information technology companies, particularly cloud
However, don't be fooled into thinking that a bunch of big
spenders in the technology sector means that all tech picks are
doing well. In fact, a number of big name blue chips in the
industry continue to face very difficult roads ahead.
Here are 11 blue chip tech stocks stumbling right now:
) is known globally for its Windows operating system. But lately,
the tech stock has been known for its declines. The tech giant
has dropped -22% in the last eight months, compared to the Dow
Jones Industrial Average and NASDAQ, which have fallen -3.4% and
-5.8% respectively. Currently, Microsoft is trading right
around its 52-week low. Add the fact that experts are
estimating a -6.8% drop in growth next quarter and Microsoft is
definitely a blue chip stock worth selling.
Cisco Systems Inc.
) has had a less than stellar 2010. Since January, the tech
company's stock has slid -14.3%, setting it behind broader
markets. Additionally, experts are predicting earnings of $0.40
per share in its next quarterly report, which is down from an EPS
of $0.43 last quarter. Up until May, Cisco stock had remained
relatively stable on the year. Since May however, the stock
has dropped -23.8%. CSCO is trading very close to its 52-week low
of $20.36, with its current stock price of $20.45.
Computers & Peripherals
) has been making headlines over its 3Par bids, but none of the
press has helped turn around HP stock. The tech giant has seen
its stock underperform in 2010 as well. In fact, the tech stock
has fallen -24.4% since January, including a -15.4% drop since
the beginning of August. The bidding war over 3par could be a
double-edged sword - if HP misses out, it could get punished. If
it wins and overpays, shareholders may be just as angry.
) is a designer, manufacturer and marketer of digital wireless
telecommunications products based in San Diego. Thus far,
QCOM stock has slid -17.2% in 2010. Currently the stock is
up to $38.29, from its 52-week low of $31.63 in July.
Experts are also predicting a growth estimate for the current
quarter of -9.4%. Recently, competitor
) completed the buyout of Infineon's wireless chip unit, which
means competitor QCOM may now be at a disadvantage on the mobile
Semiconductors & Semiconductor Equipment
Primarily engaged in the research, manufacturing and
distribution of integrated circuit related products,
Taiwan Semiconductor Manufacturing Co
) is another blue chip stock worth selling. Since January,
the stock has fallen -17.7%, against small declines by the
broader markets. Additionally, experts are not predicting
growth for the company in the near future, as they have posted a
-2.2% growth estimate for next year. The fact that Deutsche
Bank has downgraded the semiconductor stock to a "hold" from a
"buy" is also discouraging.
Cell phone maker and communication company
) has experienced the brunt of the competitive mobile phone
market. Year-to-date, Nokia's stock has vastly
underperformed, falling -34% in 2010. Over the past 12
months the company has seen a sharp decline of -39.5%. To
make matters worse, Nokia has missed earnings estimates for the
past two quarters, causing experts to scale back on their
predictions for next quarter, with an earnings estimate of
$0.14. A net profit margin of just 1% does not have
investors thrilled about Nokia stock either.
Research in Motion (RIMM)
Research in Motion Ltd.
) is famous for its signature Blackberry smartphone. Much
like competitor Nokia, RIMM has had a rough go of it in
2010. The stock has slid -33.2% in the last eight months
and -38.3% over the past year. That represents a loss of
nearly $28 per share over a 12 month period. The smartphone
market has been unkind to RIMM lately, as competitors
) and Apple are hitting it big with their Droid and iPhone
smartphones. And with a recent report that
iPhones are becoming more popular in the
, the corporate staple Blackberry may be out of style.
Computers & Peripherals
Personal Computer producer
) has seen its stock gradually decline nearly -18% in 2010.
A shell of its former self, Dell stocks currently trade at
$11.70, a -66.7% drop from August of 2005. InvestorPlace
recently reported that
Dell sales have dropped
significantly due to reduced consumer spending, and corporate
buying. Locked in a bidding war with Hewlett-Packard for
the tech company 3Par, Dell may see its only real chance for
revival slip away if HP makes the purchase. A net profit
margin of just 3.5% last quarter is another reason why this clue
chip tech stock is a sell.
Industry Software & Services
Based in California,
) has become a household name thanks to its aptly named website
Yahoo.com. Despite the site's popularity, the company's
stock has seen a drastic decline of -28.9% since mid-April.
Year-to-date the stock is down -22.1%, and is just barely above
its 52-week low of $13.03, with a stock price of $13.09.
YHOO's stock has been sitting right around that 52-week low price
for several weeks, proving that the Internet stock is anything
Adobe Systems Inc.
) is a diversified software company that offers a line of
creative, business, web and mobile software and services used by
a variety of clients. Adobe's stock was down slightly
through the first six months of 2010, and has seen a sharp drop
of -16.4% since mid-June. Year-to-date the stock is down
-24.7%, compared to minor declines in the broader markets.
Like many of the other stocks on this list, Adobe is not trading
much higher than its 52-week low of $26.01. The tech stock
currently trades at $27.64.
Activision Blizzard (ATVI)
Activision Blizzard Inc.
) publishes video games for personal computers, gaming consoles
and handheld devices. Year-to-date, Activision has seen a
modest decline of -4.4%, and a 12-month drop of -8.5%. While
Activision's stock performance has not been awful, shareholders
must be disheartened by the performance based on the video-game
company's releases over the past year. In November,
Call of Duty: Modern Warfare 2
which has sold more than 20 million copies worldwide. More
recently, Activision released
in late July and sold more than one million copies in the first
day. Despite huge sales, Activision stock has been treading
water for the past year, which must certainly upset
As of this writing, Louis Navellier did not own a position
in any of the stocks named here.
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