Bearish Bets: Three Tech Names Tumble on Earnings

These three tech names are sinking fast on the charts following earnings. 

Claim 55% Off TipRanks

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:

IBM’s Chart Is Bruised

IBM (IBM), otherwise known as Big Blue, is now more likely to be called “black ‘n’ blue.” The chart shows a big move from a declining top, with lower-highs and lower-lows. That is our textbook sign of a downtrend, and with earnings recently, the stock could not turn around. The heaviness of the sellers weighed on the stock, and now it faces even more pressure, with big volume to the downside.  

While some long-term support may hold here, a rally up in the stock will probably only amount to a selling opportunity. Let’s target the $200 area for starters, put in a stop at $247 just in case.

Short Time for ServiceNow

This one great upstart, ServiceNow (NOW), just cannot get out of its own way. Once thought to dominate software services, it is now a shell of its former self, having fallen off a cliff since the summer of 2025. There is no mistaking that this company is poorly managed, or perhaps the threat from AI is real. Whatever the case, investors have zero interest here. While NOW seemed to find buyers lately, they were all hammered post-earnings on April 23.

Money flow is poor, relative strength and moving average convergence divergence are rolling over. Nothing bullish here, but let’s try a short and target the $75 area, put in a stop at $102 just in case, but ServiceNow is in big trouble.

WEX Gets Hammered

What a turnaround for WEX (WEX) this week. After a sharp move higher on good volume over the last month, the stock lost it all in a session, getting pounded on volume not seen since February. While the drop did not penetrate the uptrend line, we could understand how bearish this chart really is; that line is going to be crossed sooner or later.

The moving average convergence divergence is about to roll over. Relative Strength has already done so, and the trend has shifted bearish. Nothing good about buying this name, but we could short it with a target of $130, the 2025 June lows.  Put in a stop at $167 or so just in case.

Now is an excellent time to join TheStreet Pro. Click here.

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