Steer Clear of These 2 Recently Downgraded Tech Stocks
StockNews
Published May 05, 2021 04:22PM ET
Updated May 05, 2021 05:30PM ET
Steer Clear of These 2 Recently Downgraded Tech Stocks
Technology stocks largely drove the market’s momentum last year. However, as progress on a mass vaccination program has been better-than-expected, large numbers of people are expected to resume more normal lives this year and by doing so reduce their reliance on tech solutions for work and play. So, while the tech industry’s long-term prospects look bright, many companies in the sector are expected to retreat in the near term. As such, analysts have recently downgraded Cree, Inc. (NASDAQ:CREE) and Fastly (NYSE:FSLY) because their near-term prospects look bleak. Let’s take a closer look.The technology sector has been the prime beneficiary of the COVID-19 pandemic because the crisis drove unprecedented demand for connectivity, remote financial transactions, collaborations, and communication-related services. However, rapid progress on the vaccination front around the globe has subdued the performance of the tech sector so far this year as the world returns to the “old normal.”
Consequently, major tech players have been witnessing a correction as investors shift their investments into quality non-tech stocks that are expected to thrive as the economy recovers this year.
Amid the current market environment, Cree, Inc. (CREE) and Fastly, Inc. (FSLY) have been downgraded by analysts. So, we think it could be wise to avoid these stocks now.
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Written By: StockNews
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