Top 4 Tech And Telecom Stocks That May Collapse This Month

As of Nov. 4, 2024, four stocks in the communication services sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

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, according to Benzinga Pro.

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

Travelzoo TZOO

• On Oct. 23, Travelzoo announced better-than-expected third-quarter EPS results and a repurchase program for up to one million shares. “We will continue to leverage Travelzoo’s global reach, trusted brand, and strong relationships with top travel suppliers to negotiate more Club Offers for members,” said Holger Bartel, Travelzoo’s Global CEO. The company's stock gained around 51% over the past month and has a 52-week high of $18.22.
• RSI Value: 76.91                              
• TZOO Price Action: Shares of Travelzoo gained 2.9% to close at $17.59 on Friday.

Integral Ad Science Holding Corp IAS

• Integral Ad Science will report its third quarter 2024 financial results after the market close on Tuesday, Nov. 12. The company's stock gained around 15% over the past month and has a 52-week high of $17.53.
• RSI Value: 70.29
• IAS Price Action: Shares of Integral Ad Science gained 0.5% to close at $11.90 on Friday.

Snap Inc SNAP

• On Oct. 29, Snap reported third-quarter revenue of $1.373 billion, beating the consensus estimate of $1.358 billion, according to Benzinga Pro. The social media company reported adjusted earnings of 8 cents per share, beating analyst estimates of 5 cents per share. "I'm proud of the team's progress this quarter, delivering strong community growth and deepening engagement while driving improved financial performance," said Evan Spiegel, CEO of Snap. The company's stock gained around 18% over the past five days and has a 52-week high of $17.90.
• RSI Value: 70.50
• SNAP Price Action: Shares of Snap gained 3% to close at $12.53 on Friday.

Roblox Corp RBLX

• On Oct. 31, Roblox reported fiscal third-quarter 2024 bookings growth of 34% year-on-year to $1.13 billion, beating the analyst consensus estimate of $1.02 billion. "In the third quarter of 2024, our key financial and operating metrics grew at high rates and in all cases were above the guidance we delivered on our Q2 2024 earnings call with significant year-over-year growth in revenue of 29%, bookings of 34%, DAUs of 27% and Hours engaged of 29%," said Michael Guthrie, chief financial officer of Roblox. The company's stock jumped around 20% over the past five days and has a 52-week high is $52.65.
• RSI Value: 78.46
• RBLX Price Action: Shares of Roblox slipped 0.5% to close at $51.44 on Friday.

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