Stocks to sell

3 Tech Stocks to Sell in August Before They Crash and Burn

With the new bull market taking a storm, now might be a good time to consider tech stocks to sell. 2022 was a rough year for investors, as the global economy battled with high inflation and rising interest rates. The stock market fell more than 20%, and small to large-cap tech stocks saw some of their largest declines since the 2020 stock market crash.

While it can be a good decision to hold stocks through volatility, picking the wrong stocks and holding out on them can be an even worse decision. Knowing when to buy a stock is key, but also knowing when to sell a stock is just as important. 

Below are my top 3 tech stocks to sell before they crash and burn!

Snapchat (SNAP)

Source: BigTunaOnline / Shutterstock

Snapchat (NYSE: SNAP) is an American multinational technology company whose principal features are pictures and messages that disappear. Snapchat’s primary demographic is Gen Z in the age range of 11-26. 

During the 2020/2021 global pandemic, Snapchat benefited tremendously from the stay-at-home orders. From March 2020 to October 2021, the stock rose more than 7X and the company was posting record profits. 

However, things have since taken a turn as the economy reopened and social media apps like TikTok continued to gain market share. In Q2 2023, Snapchat posted an adjusted net loss of $477 million. Free cash flow shrunk to $119 million, compared to $147 million in the year prior. 

Snapchat is facing serious challenges in its advertising business, and rising competition from social media apps like TikTok and Instagram. Advertisers are flocking to TikTok to reach their abundant millennial audience and acquire cheaper ad rates per 1000 impressions. 

While Snapchat’s DAUs continue to rise, investors should sell Snapchat stock until their advertising business’ future is more clear. 

Lumen Technologies (LUMN)

Lumen Technologies (NYSE:LUMN) has had an extremely rough year and is down roughly 66% YTD. 

The company specializes in telecommunications, IoT, security, and cloud solutions. Lumen once had its glory days in the late 90s to early 2000s, but the company has seen an unfortunate turn for the worse. 

They recently reported their Q2 earnings results which brought forth some shocking revelations. In Q2 2023, the company reported a net loss of $8.73 billion for the quarter from an impairment charge. The telecommunications company is currently facing steep challenges as it battles with slowing growth, rising competition, and crippling debt.

Total assets are down to $36 billion in the quarter, compared to $45 billion in December 2022. While the company can still see a complete turnaround, they continue to burn cash hand over fist and profitability is nowhere in sight. With $411 million in cash and nearly $20 billion in long-term debt, the future does not look too bright for Lumen.

The CEO’s plan to drive growth still remains unclear, and investors should sell Lumen before they regret it. 

ContextLogic (WISH)

Source: Ralf Liebhold /

ContextLogic (NASDAQ:WISH) was once a popularized meme stock during the 2020/2021 stock market bull run.

The company received a major buzz on social media platforms like Twitter and Reddit. Despite being unprofitable, retail investors took notice of the company’s hype. However, what retail investors failed to realize is that WISH’s glory days were numbered.

When inflation skyrocketed in the U.S. in 2022, popularized meme stocks, small/mid-cap stocks, and unprofitable companies fell precipitously. This ordeal only highlighted companies’ true value, which sparked the Fed’s tightening cycle and risk-off environment. 

Since 2020, ContextLogic has continued to see a decline in top-line growth. In Q1 2023, total revenue was down 49% YOY while posting a net loss of $89 million for the quarter. The company is still not able to generate positive cash flow from operations. ContextLogic’s business model is clearly failing and the company is losing tons of money. Another main concern is dilution, as they will likely run out of cash by Q2 2024. 

Therefore, WISH is one of the top tech stocks to sell in 2023, and investors should sell before the business fundamentals worsen. 

On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Terel Miles is a contributing writer at, with more than seven years of experience investing in the financial markets.