BALTIMORE (Stockpickr) -- Just like that, the "Wall Street darling" status once held by social networking stocks is gone. Long gone.
It was only a handful of months ago that social media companies -- and private equity names in general -- were getting plenty of positive press that coincided with a slew of high-profile IPOs. In fact, internet businesses were one of the few industry groups that actually plowed higher in mid-to-late 2011, as the rest of the market got shaken around by debt ceiling drama here at home and the ongoing European debt crisis across the pond.
But those times are over. Tentative profitability and even more tentative price appreciation has pushed investors out of social networking stocks en masse, and by and large it's been for a good reason. But now that so many names are "cheap," plenty of people are scouring for bargain-priced buying opportunities where they shouldn't be.
That's why we're taking a technical look at five social networking stocks you should sell.>>5 Stocks Poised to Pop on Bullish Earnings For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution. Now, to be clear, I'm not saying that bankruptcy is inevitable for these firms. I'm not even saying that they'll continue to fall forever. But in the short term, investors should be avoiding these five names like the plague. With that, here's a look at five social networking setups that you should sell in August.
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