Bearish Bets: Three Big Tech Stocks Get Short-Circuited

My Inconclusive Technical Read on Integrated Device Technology

These three big-name technology stocks are facing tough times. Once stars in their respective industries, all now appear technically bearish and ready to short.

While we will not weigh in with fundamental analysis on these issues, we will pop the hood for a look at the charts.

Let’s dig in:

Zscaler Is Scaling Down

Cybersecurity names have been hit hard since late 2025 amid the idea that AI is going to make this group extinct. The jury is still out on that theory, but the market is weighing and believing trouble is on the horizon. Everywhere you look, a big name is being cut down.

Zscaler (ZS) is among the hard-hit. ZS is down more than 60% from the highs in November. The stock did run up in anticipation of a potential buyout offer, but that is clearly off the table now.  With a channel of lower highs and lower lows, the selling has been intensified by the trend. Not even a strong market rally could get a bullish tick for ZS, and that means more down is coming. 

As you can see in the bottom pane, money flow is bearish. Also, the moving average convergence divergence, in the second pane to the bottom, is on a sell signal, and the stock is in a huge downtrend. Let’s target the $100 area for starters, put in a stop at $140 just in case.

Snowflake Is Melting 

With the recent meltdown of software-related and software-as-a-service companies, there is real concern about the viability of such products. Is AI going to rip a hole into the sector and just leave these companies on the side of the road? It could be true; stocks in the group are reflecting this theory. Sentiment is very poor and bearish.

Snowflake (SNOW) is right in the crosshairs. The stock has been bludgeoned since a huge breakdown started last December. Lower highs, lower lows are our textbook definition of a downtrend. Without much effort, the bearish have shaken down this name as it has lost about 55% of its value in less than five months. The indicators are bearish, of course. Relative Strength is oversold (not a reason to buy), money flow is negative, and the MACD is again on a sell signal.

We’ll target the $120 area and then perhaps down to $105 in a big move down, put in a stop at $145 just in case.

Selling at Salesforce 

Another ugly software name. Take your pick, they are all over the place. Salesforce (CRM), once the darling of software and software-as-a-service, is reeling. The stock has been under enormous pressure for months, with a series of lower highs and lower lows as the stock has fallen 45% since a breakdown in early 2026.  

The indicators of course are bearish, with now negative money flow for this big Dow Industrial name, MACD on a sell signal, and Relative Strength recently rejected at the 50 level. We see a bit more down here, and if it rallies, you might want to add to your short. Target the $150 level, then perhaps down to $140. Put in a stop at $182 just in case.

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This article is being shared as premium content from TheStreet Pro. It was written by Bob Lang