This post Tech's ?One-Trick Ponies? Storm Back appeared first on Daily Reckoning. Sellers are punching America's most prolific tech companies in the throat. The beloved FAANGs ? Facebook, Amazon, Apple, Netflix, and Google ? are sinking into the red. These formerly red-hot stocks that have led the market higher in 2017 are finally coming under some selling pressure. Facebook shares have dropped 4.5% earlier this week after CEO Mark Zuckerberg scrapped plans to create a new class of company stock so he could retain voting control. Facebook is also coming under intense scrutiny for its failures to adequately vet false and misleading news stories on its platform during the 2016 election. Not to be outdone, Apple shares are also sliding this month as mixed reactions roll in for its iPhone and Apple Watch updates. Some prominent analysts are calling for the stock to pull back as much as 8% as investors digest the new devices' impact on the company's earnings in the coming quarters. But the biggest losers of the bunch over the past two months are none other than Alphabet Inc., Google's parent company and Amazon.com. Google shares are down almost 4% since late July. Amazon stock has fared even worse. It's down almost 10% over the past eight weeks. 
But there's a silver lining to this mega-cap selloff: Some of the market's unpopular, unloved tech wrecks are catching a bid. In a bizarre twist, some of the biggest tech duds are beginning to bounce off their lows. I'm talking about the worst one-trick ponies to have hit the market over the past three years. These are the pure-play gadget stocks ? the companies that focus on a single niche for their products. Many of these tech also-rans have completely fallen apart since their IPOs. God help you if you were stuck in one of these stocks as they dropped? Take Fitbit for example. Fitbit makes, well? Fitbits. For the uninitiated, these are those little vibrating bracelets people wear to tell them how many steps they've taken every day. There are a bunch of different Fitbit products at various price points that can help users track their health and fitness goals. Sure, wearable tech was once an exciting idea. But most investors are skeptical of Fitbit's offerings competing with the Apple Watch. As a result, the stock has been clobbered. It's down more than 80% since its 2015 IPO. But Fitbit shares bottomed out this summer. Now they're posting their first sustained rally of the year. The stock jumped nearly 2% on Monday while the Nasdaq took a beating. Shares have screamed higher by nearly 50% off their August lows and the stock is back above its 200-day moving average for the first time since October 2016. I like the risk-reward offered by FIT right now. Check out the chart: 
GoPro Inc. is another one of tech's one-trick ponies that's finally catching a bid. The company makes cameras for the extreme sports crowd and other wannabe daredevils. Even its long-term chart looks like it enjoys a little cliff diving. Investors trashed this stock over the past couple years. It's dropped as much as 85% from its late 2014 highs. But GoPro has mounted an impressive rally off its lows. The stock spiked in August, consolidated, and is now working on another round of higher prices. It even gained another 4% during this week's market downturn. A GoPro or Fit snap-back play might never turn into a long-term trade. What we have here is an opportunity to play a bottom-bouncer for some sweet short-term gains. But remember, the ride could be extremely volatile! But snagging one of these bottom-bouncers could pay off handsomely if we continue to see this rotation from the FAANGs into the forgotten corners of the tech sector. And even during this major correction there is always a way to make a score, if you're looking in the right places. For Tomorrow's Trends Today, Greg Guenthner
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