The technology sector has been an area of ​​strength for many years. It has S&P500 and that Nasdaq-Composite to new heights. However, there are some technology stocks that no longer offer attractive growth prospects.

Making profits in the stock market is not just about which stocks you buy. It’s also about which stocks you sell and which you avoid. The U.S. economy is facing some challenges amid discouraging labor market data and an election cycle. Many stocks are in corrections, offering buying opportunities for patient investors.

However, some technology stocks are not attractive even after recent price declines. Looking at a company’s financial results gives clues about its future direction. However, it is also important to assess the sentiment in the space. People are fed up with high prices, especially when companies with lower quality products and services are also participating in the price hikes. These are some of the technology stocks you should sell before the losses continue.

Cisco (CSCO)

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Granted, Cisco (NASDAQ:CSCO) is unlikely to crash as much as other tech giants if the economic downturn continues. Its status as a stock is similar to telecom companies: very little movement, high yield, and a trend of modest losses. Your money won’t disappear with Cisco, but it will likely underperform the stock market and inflation.

The technology company hasn’t been doing well for several years. Shares are down 8% year-to-date and have declined 11% over the past five years. A dividend yield of nearly 3.5% and a price-to-earnings ratio of 16 cushion the blow somewhat, but it’s still not an attractive stock.

The company’s results for the third quarter of fiscal 2024 reflect this trend. Revenue fell 13% year over year. The company’s largest acquisition, Splunk, contributed less than 5% to total revenue. Another worrying sign for investors is Cisco’s 41% drop in net income. Falling revenue and net income do not look good for a tech giant that has been lagging the stock market for several years.

Snowflake (snow)

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Snowflake (NYSE:SNOW) continues to grow rapidly, but it is a typical growth stock with booming revenues and significant losses. For example, the company reported a GAAP net loss of $317 million in the first quarter of fiscal 2025, up 36% from the same period last year. However, product revenue increased 34% year-over-year to $789.6 million. Total revenue reached $828.7 million, up 33% year-over-year.

The problem is: Net income does not appear to be improving significantly. Stock-based compensation contributed to the net loss, which is somewhat inflated compared to the underlying business’s performance. However, it does not look like the company will become profitable in the next year or two. In the meantime, it is possible that revenue growth will slow in the coming quarters as economic challenges become more apparent.

Snowflake’s optimistic forecast will be even more convincing if the company turns a profit, but that’s not what investors are banking on. Shares have fallen about 40 percent since the beginning of the year and have lost more than 50 percent of their value since the IPO.

Zoom (ZM)

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Zoom (NASDAQ:CM) has no competitive advantage as a videoconferencing company that is losing market share to the tech giants. Shares have fallen about 90% since their highs during the pandemic and will lose nearly 20% of their value in 2024. The stock trades at a P/E ratio of 21, but even that is not enough to make the stock look attractive.

The company’s lack of a competitive advantage was evident in the first quarter of fiscal 2025. Revenue only increased by 3.2% year-on-year as the company struggles with increasing competition and limited growth opportunities. Due to the pandemic, almost everyone now knows the video conferencing feature Zoom. In addition, consumers and businesses can choose from a range of free alternatives.

Zoom still has its advantages, with 3,883 customers paying the company more than $100,000 in the last 12 months, an 8.5% increase year over year. Low-single-digit revenue growth has become the norm for the company, and if revenue doesn’t pick up, net income growth will also eventually stall.

At the time of publication, Marc Guberti had no position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publishing guidelines.

At the time of publication, the editor in charge did not hold any positions (either directly or indirectly) in the securities mentioned in this article.