Top 5 Tech And Telecom Stocks That May Fall Off A Cliff In Q2

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.

Electronic Arts Inc. EA

• On March 29, Electronic Arts disclosed a restructuring plan to reduce headcount by approximately 6% of the company's workforce, in addition to office space reductions. The company’s stock has a 52-week high of $142.79 .
• RSI Value: 73.89
• EA Price Action: Shares of Electronic Arts fell 0.8% to close at $125.16 on Thursday.

Activision Blizzard, Inc. ATVI

• The Justice Department prosecuted Activision Blizzard for restricting competition for players in Activision's Overwatch and Call of Duty professional esports leagues and suppressing the wages of esports players in these leagues. The company’s stock has a 52-week high of $85.88.
• RSI Value: 71.52
• ATVI Price Action: Shares of Activision Blizzard fell 0.2% to close at $85.22 on Thursday.

Spok Holdings, Inc. SPOK

• Spok said it sees FY23 revenue of $129 million to. $136.5 million and adjusted EBITDA of $24 million to $26 million. "I am proud of what the Spok team has been able to accomplish in 2022 and believe that we have established a solid foundation for the future as we continue to execute our focus on generating cash flow and returning capital to stockholders," said Vincent D. Kelly, chief executive officer of Spok Holdings, Inc. The company has a 52-week high of $12.71.
• RSI Value: 76.25
• SPOK Price Action: Shares of Spok Holdings gained 0.3% to close at $11.87 on Thursday.

Orange S.A. ORAN

• Anheuser-Busch InBev SA has chosen Orange division, Orange Business, to deliver connectivity and voice services. The company’s 52-week high is $80.57.
• RSI Value: 71.40
• ORAN Price Action: Shares of Orange rose 1.1% to close at $12.48 on Thursday.

World Wrestling Entertainment, Inc. WWE

• Endeavor Group Holdings announced plans to merge its UFC subsidiary with WWE and form a new global live sports and entertainment company. The company has a 52-week high of $101.08.
• RSI Value: 73.26
• WWE Price Action: Shares of World Wrestling Entertainment rose 1.5% to settle at $100.38 on Thursday.

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