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10 Tech Stocks to Avoid As Inflation Heats Up

In this article, we discuss the 10 tech stocks to avoid as inflation heats up. If you want to read about some tech stocks to avoid amid rising inflation, go directly to 5 Tech Stocks to Avoid As Inflation Heats Up.

The benchmark indexes of the United States stock market have been sliding as the US dollar and Treasury yields register strong rallies on the back of worse-than-expected inflation numbers. On September 13, data from the US Department of Labor revealed that the Consumer Price Index gained 0.1% in August, versus expectations for a 0.1% decline. The rise was all the more surprising since the index, a standard inflation measure, had remained flat in July, boosting optimism around the soft landing for the economy amid rising interest rates. 

The rise in inflation came even as prices of energy and food items declined. Equities on Wall Street, especially prominent growth names like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), registered some of their worst percentage declines since the height of the pandemic panic in the spring of 2020. The prospects of the Federal Reserve hiking interest rates by at least 75 basis points were also boosted, prompting a mass exodus from growth stocks. 

Greg Bassuk, the chief executive of AXS Investments in New York, told news agency Reuters recently that concerns about the upcoming Fed meeting had risen and investors were now actively preparing for the Fed to make a more hawkish move than earlier anticipated. He also said that the developing situation indicated that there was “greater likelihood the economy could be tipped into a recession”. Investors with tech-heavy profiles have thus started preparing for the storm ahead by de-risking their portfolios. 

Our Methodology

The companies that operate in the tech sector and witnessed a more than 40% decline in share price year-to-date as of September 21 were selected for the list. The analyst ratings of these firms and the latest updates related to them are also discussed to provide some additional context. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.

Speedcurve Performance Analytics

Tech Stocks to Avoid As Inflation Heats Up

10. ContextLogic Inc. (NASDAQ:WISH)

Number of Hedge Fund Holders: 13  

Loss in Share Price Year-to-Date as of September 21: 70%

ContextLogic Inc. (NASDAQ:WISH) operates as a mobile e-commerce company worldwide. On August 9, the company posted earnings for the second quarter of 2022, reporting losses per share of $0.13, beating market estimates by $0.02. The revenue over the period was $134 million, down over 79% compared to the revenue over the same period last year and missing analyst estimates by $20 million. The firm said the adjusted EBITDA for the year was expected to be a loss in the range of $110 million to $130 million.

On August 10, Credit Suisse analyst Stephen Ju maintained an Outperform rating on ContextLogic Inc. (NASDAQ:WISH) stock and lowered the price target to $7.20 from $7.60, predicting that the third quarter free cash flow for the firm will mark the trough. 

At the end of the second quarter of 2022, 13 hedge funds in the database of Insider Monkey held stakes worth $45.8 million in ContextLogic Inc. (NASDAQ:WISH), compared to 19 in the preceding quarter worth $44.5 million. 

Just like Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), ContextLogic Inc. (NASDAQ:WISH) is one of the tech stocks to avoid as inflation climbs and interest rates rise. 

9. Upstart Holdings, Inc. (NASDAQ:UPST)

Number of Hedge Fund Holders: 15   

Loss in Share Price Year-to-Date as of September 21: 84% 

Upstart Holdings, Inc. (NASDAQ:UPST) operates a cloud-based artificial intelligence lending platform. In mid-August, the company announced that it had enabled Alliant Credit Union, a partner of the firm, to offer personal loans to US-based customers through the artificial intelligence lending platform. Alliant has over $15 billion in assets and more than 650,000 members, making it one of the largest credit unions in the country. The two firms had partnered back in May. 

On August 11, Atlantic Equities analyst Simon Clinch downgraded Upstart Holdings, Inc. (NASDAQ:UPST) stock to Underweight from Neutral and lowered the price target to $22 from $32, noting that the risks to the business have increased meaningfully in the near-term. 

At the end of the second quarter of 2022, 15 hedge funds in the database of Insider Monkey held stakes worth $115 million in Upstart Holdings, Inc. (NASDAQ:UPST), compared to 25 in the previous quarter worth $100.9 million.

In its Q2 2022 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and Upstart Holdings, Inc. (NASDAQ:UPST) was one of them. Here is what the fund said:

“Upstart Holdings, Inc. (NASDAQ:UPST) was a material detractor for the quarter. It was a mistake, and we sold our position. Upstart is an artificial intelligence (AI) and cloud-based lending platform. The company uses AI models that are designed to underwrite superior loans with lower interest rates, lower default rates, higher approval rates, and increased underwriting automation. When we purchased Upstart, we believed the company had an excellent product and the addressable market was large.

Upstart’s results during 2021 were impressive. In the first quarter of 2022, the company reported solid results but lowered guidance and, more importantly, used its balance sheet to warehouse loans temporarily. The company’s decision to use its balance sheet to finance its growth surprised us and other market participants, and its stock price decreased dramatically. While we admire the management team, we are less confident in the company’s long-term prospects.

It will be more difficult than we anticipated for Upstart to extend its competitive advantages with smaller banks into adjacent markets such as auto loans and mortgages. As a result, our value for Upstart is unstable and the company no longer qualifies for investment. We are following our discipline and reallocating capital into companies with more stable values.”

8. Stitch Fix, Inc. (NASDAQ:SFIX)

Number of Hedge Fund Holders: 23

Loss in Share Price Year-to-Date as of September 21: 75%

Stitch Fix, Inc. (NASDAQ:SFIX) sells a range of apparel, shoes, and accessories through its website and mobile application. On September 20, the company posted earnings for the fourth fiscal quarter, reporting losses per share of $0.89, missing market estimates by $0.26. The revenue over the period was $481 million, down over 15% compared to the revenue over the same period last year and missing analyst estimates by $6 million. The firm said the net revenue per active client was $546 during the time, an increase of 8% year-over-year. 

On August 15, Barclays analyst Trevor Young assumed coverage of Stitch Fix, Inc. (NASDAQ:SFIX) stock with an Equal Weight rating and lowered the price target to $8 from $7, noting that the revenue growth of the firm has slowed much faster than peers. 

Among the hedge funds being tracked by Insider Monkey, New York-based firm D E Shaw is a leading shareholder in Stitch Fix, Inc. (NASDAQ:SFIX), with 3.9 million shares worth more than $19 million. 

In its Q3 2022 investor letter, RGA Investment Advisors LLC, an asset management firm, highlighted a few stocks and Stitch Fix, Inc. (NASDAQ:SFIX) was one of them. Here is what the fund said:

“Typically we give investments a year in order to truly judge whether they work or not. The reality is that markets have moved way too quickly in both directions over the past two years and thus we left ourselves in a quandary preferencing inaction when action should have been taken. One of the core tenets and intersections of our analysis and position  management has held that we need one or two key variables to distill and simplify a thesis down to and follow as our North Star. When we wrote up Stitch Fix, Inc. (NASDAQ:SFIX) in our Q2 2021 commentary, we specifically said “We expect active client growth to be the foremost driver of the business growth, despite evidence that Direct Buy will drive growing wallet share.” In each of the three earnings reports following our purchase of Stitch Fix, active client growth slowed sequentially while wallet share (revenue per active client) grew. In studying the company, rising wallet share was an important indicator that Direct Buy (now Freestyle) would not cannibalize the core business and help grow even with existing customers. We allowed this to slip into what is a solid, though not investable idea–the idea that rising wallet share would be a leading indicator of accelerating client growth, given two factors: 1) rising wallet share means higher LTVs, allowing the company to pay more to acquire customers at the same rates of return; and, 2) rising wallet share proved an enhanced value prop which validates the product direction (…read more)

7. Robinhood Markets, Inc. (NASDAQ:HOOD)

Number of Hedge Fund Holders: 25  

Loss in Share Price Year-to-Date as of September 21: 46%  

Robinhood Markets, Inc. (NASDAQ:HOOD) operates a financial services platform in the United States. In mid-September, Vlad Tenev, the co-founder and chief executive officer of the firm, said that Bitcoin, the most popular digital currency, was the most favored recurring investment on the trading platform. Robinhood has allowed users to trade in the currency since 2018, becoming one of the earliest adopters of the coin. Tenev added that Robinhood was working to add advanced charting and the ability to trade options in cash accounts on the platform. 

On September 13, JPMorgan analyst Kenneth Worthington maintained an Underweight rating on Robinhood Markets, Inc. (NASDAQ:HOOD) stock with a price target of $7, noting that the customers of the firm have continued to underperform the market.

At the end of the second quarter of 2022, 25 hedge funds in the database of Insider Monkey held stakes worth $616 million in Robinhood Markets, Inc. (NASDAQ:HOOD), compared to 19 the preceding quarter worth $947 million.

In its Q4 2021 investor letter, Claret Asset Management, an asset management firm, highlighted a few stocks and Robinhood Markets, Inc. (NASDAQ:HOOD) was one of them. Here is what the fund said:

“Robinhood Markets, Inc. (NASDAQ:HOOD) went public at $38 a share at the end of July of this year. After a oneday decline of 8%, it proceeded to rise to a peak of $85 in a matter of 4 days before settling down around $40 in September. Then, we found out that the company does not appear to understand the margin rules that apply to their client’s trades… and got fined by the Securities Exchange Commission. As of today, it is trading below $20, at 57 times earnings, approximately half of its IPO price. Caveat emptor… Buyer beware.”

6. Affirm Holdings, Inc. (NASDAQ:AFRM)

Number of Hedge Fund Holders: 27

Loss in Share Price Year-to-Date as of September 21: 76%     

Affirm Holdings, Inc. (NASDAQ:AFRM) operates a platform for digital and mobile-first commerce in the United States, Canada, and internationally. On August 28, the company posted earnings for the fourth fiscal quarter, reporting losses per share of $0.65, missing market estimates by $0.08. The revenue over the period was $364 million, up over 39% compared to the revenue over the same period last year and beating analyst estimates by $8 million. The stock has plummeted about 76% YTD as of September 21.

On September 16, DA Davidson analyst Christopher Brendler maintained a Buy rating on Affirm Holdings, Inc. (NASDAQ:AFRM) stock with a price target of $50, noting the firm was less exposed and could actually benefit from new CFPB regulations.

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Affirm Holdings, Inc. (NASDAQ:AFRM), with 4.1 million shares worth more than $74 million.  

In addition to Apple Inc. (NASDAQ:AAPL), Microsoft Corporation (NASDAQ:MSFT), and Alphabet Inc. (NASDAQ:GOOG), Affirm Holdings, Inc. (NASDAQ:AFRM) is one of the tech stocks to avoid as inflation heats up and interest rates rise. 

In its Q2 2022 investor letter, Bireme Capital, an asset management firm, highlighted a few stocks and Affirm Holdings, Inc. (NASDAQ:AFRM) was one of them. Here is what the fund said:

“We recently covered our short position in Affirm Holdings, Inc. (NASDAQ:AFRM) after a rapid decline brought the share price to ~$30 – down from our entry point above $100 – in only 7 months. We discussed Affirm in our Q4 letter, saying the following:

Affirm is a “Buy Now, Pay Later” (BNPL) company founded by former PayPal CTO and cofounder Max Levchin. They provide installment loans to consumers, partnering with retail companies looking to drive higher sales. They have two primary products: a zero-fee installment loan for consumers with the best credit scores, and a more traditional product with 20%+ interest rates for subprime borrowers. Their stated plan is to disrupt the credit industry with more transparent, lower-fee loans. At a roughly $28b market cap at the start of 2022, AFRM stock was priced at more than 20x trailing sales, a steep price for a money-losing lender. While their early lead in online BNPL transactions and partnerships with fast-growing retailers like Peloton has fueled significant historical growth, a wave of competition has arrived… While the stock has already fallen sharply from where we initiated our short position, we think it could fall another ~40% to trade at 8x FY2022 sales (…read more)

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Disclosure. None. 10 Tech Stocks to Avoid As Inflation Heats Up is originally published on Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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AI, Tariffs, Nuclear Power: One Undervalued Stock Connects ALL the Dots (Before It Explodes!)

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

AI is eating the world—and the machines behind it are ravenous.

Each ChatGPT query, each model update, each robotic breakthrough consumes massive amounts of energy. In fact, AI is already pushing global power grids to the brink.

Wall Street is pouring hundreds of billions into artificial intelligence—training smarter chatbots, automating industries, and building the digital future. But there’s one urgent question few are asking:

Where will all of that energy come from?

AI is the most electricity-hungry technology ever invented. Each data center powering large language models like ChatGPT consumes as much energy as a small city. And it’s about to get worse.

Even Sam Altman, the founder of OpenAI, issued a stark warning:

“The future of AI depends on an energy breakthrough.”

Elon Musk was even more blunt:

“AI will run out of electricity by next year.”

As the world chases faster, smarter machines, a hidden crisis is emerging behind the scenes. Power grids are strained. Electricity prices are rising. Utilities are scrambling to expand capacity.

And that’s where the real opportunity lies…

One little-known company—almost entirely overlooked by most AI investors—could be the ultimate backdoor play. It’s not a chipmaker. It’s not a cloud platform. But it might be the most important AI stock in the US owns critical energy infrastructure assets positioned to feed the coming AI energy spike.

As demand from AI data centers explodes, this company is gearing up to profit from the most valuable commodity in the digital age: electricity.

The “Toll Booth” Operator of the AI Energy Boom

  • It owns critical nuclear energy infrastructure assets, positioning it at the heart of America’s next-generation power strategy.
  • It’s one of the only global companies capable of executing large-scale, complex EPC (engineering, procurement, and construction) projects across oil, gas, renewable fuels, and industrial infrastructure.
  • It plays a pivotal role in U.S. LNG exportation—a sector about to explode under President Trump’s renewed “America First” energy doctrine.

Trump has made it clear: Europe and U.S. allies must buy American LNG.

And our company sits in the toll booth—collecting fees on every drop exported.

But that’s not all…

As Trump’s proposed tariffs push American manufacturers to bring their operations back home, this company will be first in line to rebuild, retrofit, and reengineer those facilities.

AI. Energy. Tariffs. Onshoring. This One Company Ties It All Together.

While the world is distracted by flashy AI tickers, a few smart investors are quietly scooping up shares of the one company powering it all from behind the scenes.

AI needs energy. Energy needs infrastructure.

And infrastructure needs a builder with experience, scale, and execution.

This company has its finger in every pie—and Wall Street is just starting to notice.

Wall Street is noticing this company also because it is quietly riding all of these tailwinds—without the sky-high valuation.

While most energy and utility firms are buried under mountains of debt and coughing up hefty interest payments just to appease bondholders…

This company is completely debt-free.

In fact, it’s sitting on a war chest of cash—equal to nearly one-third of its entire market cap.

It also owns a huge equity stake in another red-hot AI play, giving investors indirect exposure to multiple AI growth engines without paying a premium.

And here’s what the smart money has started whispering…

The Hedge Fund Secret That’s Starting to Leak Out

This stock is so off-the-radar, so absurdly undervalued, that some of the most secretive hedge fund managers in the world have begun pitching it at closed-door investment summits.

They’re sharing it quietly, away from the cameras, to rooms full of ultra-wealthy clients.

Why? Because excluding cash and investments, this company is trading at less than 7 times earnings.

And that’s for a business tied to:

  • The AI infrastructure supercycle
  • The onshoring boom driven by Trump-era tariffs
  • A surge in U.S. LNG exports
  • And a unique footprint in nuclear energy—the future of clean, reliable power

You simply won’t find another AI and energy stock this cheap… with this much upside.

This isn’t a hype stock. It’s not riding on hope.

It’s delivering real cash flows, owns critical infrastructure, and holds stakes in other major growth stories.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 100+% Return within 12 to 24 months.

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For a ridiculously low price of just $9.99 per month, you can unlock our in-depth investment research and exclusive insights – that’s less than a single fast food meal!

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

1. Head over to our website and subscribe to our Premium Readership Newsletter for just $9.99.

2. Enjoy a month of ad-free browsing, exclusive access to our in-depth report on the Trump tariff and nuclear energy company as well as the revolutionary AI-robotics company, and the upcoming issues of our Premium Readership Newsletter.

3. Sit back, relax, and know that you’re backed by our ironclad 30-day money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!


No worries about auto-renewals! Our 30-Day Money-Back Guarantee applies whether you’re joining us for the first time or renewing your subscription a month later!