Top 2 Tech And Telecom Stocks That May Collapse In Q1

As of Jan. 29, 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.

Meta Platforms Inc META

• Meta will release its earnings for the fourth quarter on Wednesday, Jan. 29 after the closing bell. Analysts expect Meta to post quarterly earnings at $6.77 per share on revenue of $46.99 billion. The company's stock surged around 14% over the past month and has a 52-week high of $682.58.
• RSI Value: 75.1                                
• META Price Action: Shares of Meta gained 2.2% to close at $674.33 on Tuesday.

AT&T Inc T

• On Jan. 27, AT&T reported better-than-expected fourth-quarter results. The company posted operating revenues of $32.30 billion, up by 0.9% year over year. It beat the analyst consensus estimate of $32.04 billion. Adjusted EPS of 54 cents beat the estimate of 50 cents.. The company's stock gained around 9% over the past five days and has a 52-week high of $24.58.
• RSI Value: 74.4
• T Price Action: Shares of AT&T gained 1.1% to close at $24.40 on Tuesday.

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