BREAKING: Trump Picks Thiel Protégé for VP, 2 Overhyped Tech Stocks That Are Ticking Time Bombs

Stocks soared on Monday, with investors betting that an unsuccessful attempt on former President Trump's life might boost his popularity and the GOP's chances in November. 

The Dow jumped 313 points, while the S&P 500 and Nasdaq climbed 0.5% and 0.6%, respectively, hitting new highs. 

Apple surged 2% after a Wall Street upgrade. Small-cap shares and banks led the charge, with the Russell 2000 gaining over 2%. 

Insurers like Humana and UnitedHealth also rose.

Right before I started writing, Former President Trump announced that his VP candidate will be J.D. Vance, the former venture capitalist who was mentored by Peter Thiel before jumping into politics.

Here’s our heatmap for today.

2 Overhyped Tech Stocks That Are Ticking Time Bombs

(Source: CNBC)

This year’s been the belle of the ball for tech stocks, with advancements like generative AI pushing the market to new dizzying heights we haven’t seen since the dot com boom (and later bust) back in the 90s. 

But, as with every party, there are those few guests who just don't quite fit in. Here are two tech stocks that are struggling so much, they make my Aunt Edna’s potato salad look appealing.

Snowflake (SNOW): Data Breach Blues

First on our list is Snowflake (NYSE), the cloud computing whiz kid that’s hit a major rough patch. They provide cloud-based data storage and analytics, operating under a snazzy “data-as-a-service” model. However, their recent blunder is more embarrassing than accidentally replying all to an office-wide email.

Snowflake suffered a data breach, a cardinal sin for a company that claims to be a cloud guru. The breach stemmed from allowing customers to set up accounts using single-factor authentication instead of the more secure multi factor authentication. It’s like leaving your front door unlocked and then being surprised when someone walks in and drinks all the milk in your fridge.

Despite their revenue jumping 34% to $789.6 million in the first quarter of fiscal 2025, investors are giving SNOW stock the cold shoulder. Shares are down 29% this year, earning it a “D” rating in the Portfolio Grader.

SolarEdge Technologies (SEDG): A Solar Eclipse

Lastly, we have SolarEdge Technologies (NASDAQ), a company in the solar energy biz that’s been taking more hits than my niece's piñata at her birthday party. They make power optimizers and inverters to help solar panels work more efficiently, but the industry’s been tough lately.

Higher labor costs, inflated interest rates, and regulatory changes have all rained on SolarEdge’s parade. Potential customers aren’t keen on borrowing $50,000 for solar panel roofs when interest rates are sky-high, and the Fed’s reluctance to cut rates isn’t helping.

(Source: Florida Daily)

In June, SolarEdge took another blow when one of its customers, PM&M Electric, filed for Chapter 7 bankruptcy. The company owes SolarEdge $11.4 million, and good luck seeing that money anytime soon. It reminds me of when I lent money to a friend in college who promised to pay me back but conveniently forgot every time I mentioned it.

Revenue for the first quarter was a dismal $204.4 million, down 78% from a year ago. The company posted a loss of $26.1 million for the quarter, a far cry from the $300 million profit they enjoyed a year ago. With shares down 68% in 2024, SolarEdge is practically begging for a lifeline, earning an “F” rating in the Portfolio Grader.

So what’s the bottom line here? Just because tech and AI stocks are throwing the wildest pool party of the year doesn’t mean some won’t get caught swimming naked when mom and dad get home. Some, like Snowflake and SolarEdge, are stumbling around like someone trying to find the bathroom in the middle of the night. Make sure to do your research before going all-in on a single stock making wild promises.

Stock.News has positions in Apple.