Top 2 Tech And Telecom Stocks That Are Ticking Portfolio Bombs

As of Jan. 2, 2025, two 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.

Outbrain Inc OB

• On Nov. 7, Outbrain posted better-than-expected quarterly earnings. “We continue to drive improvements in our business model and experience momentum in our growth areas, helping deliver a strong quarter including continuous margin improvement” said David Kostman, CEO of Outbrain. “Our beta launch of Moments demonstrates our role as a strategic innovator for the Open Internet, unlocking new potential for media owners and advertisers by bringing social media experiences.” The company's stock surged around 31% over the past month and has a 52-week high of $7.87.
• RSI Value: 74.1                                
• OB Price Action: Shares of Outbrain fell 1% to close at $7.18 on Tuesday.

Innovid Corp CTV

• On Nov. 21, Mediaocean announced plans to acquire Innovid for $3.15 per share in a $500 million deal. “From the start, when we founded Innovid 17 years ago, we have been driven by the belief that advertising can be made better for all – and this merger represents a key milestone on that journey, and the people, teams, and passion behind it,” said Zvika Netter, CEO & Founder, Innovid. The company's stock gained around 82% over the past six months and has a 52-week high of $3.40.
• RSI Value: 72.6
• CTV Price Action: Shares of Innovid closed at $3.09 on Tuesday.

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