Top 5 Tech And Telecom Stocks That May Plunge

The most overbought stocks in the communication services sector presents an opportunity to go short on these overvalued companies.

The RSI is a momentum indicator, which compares a stock's strength on days when prices go up to its strength on days when prices go down. When compared to a stock's price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70.

Here’s the latest list of major overbought players in this sector.

NextPlay Technologies, Inc. NXTP

• NextPlay announced a 1-for-20 reverse stock split effective January 6, 2023. The company’s stock has a 52-week high of $0.88 .
• RSI Value: 98.07
• NXTP Price Action: Shares of NextPlay Technologies fell 15.4% to settle at $0.1100 on Thursday and lost 11.8% in after-hours trading.

Madison Square Garden Sports Corp. MSGS

• Madison Square Garden, late October, reported a Q1 loss of $0.73 per share. The company’s stock has a 52-week high of $186.49.
• RSI Value: 72.41
• MSGS Price Action: Shares of Madison Square Garden Sports dropped 1.3% to close at $184.00 on Thursday and added 2.2% in after-hours trading.

iQIYI, Inc. IQ

• IQIYI, during November, reported better-than-expected Q3 EPS and sales results. The company has a 52-week high of $7.10.
• RSI Value: 71.54
• IQ Price Action: Shares of iQIYI gained 10.5% to close at $6.86 on Thursday.

NetEase, Inc. NTES

• NetEase, during November, reported mixed Q3 earnings results. The company’s 52-week high is $108.77.
• RSI Value: 71.33
• NTES Price Action: Shares of NetEase fell 0.6% to close at $82.06 on Thursday and added 0.1% in after-hours trading.

Taboola.com Ltd. TBLA

• Needham recently maintained Taboola.com with a Buy and raised the price target from $2.5 to $3.5. The company has a 52-week high of $7.50.
• RSI Value: 70.09
• TBLA Price Action: Shares of Taboola.com fell 0.9% to settle at $3.22 on Thursday and added 2.2% in after-hours trading.

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