Top 2 Tech Stocks That May Collapse In February

As of Feb. 7, 2025, two stocks in the information technology 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.

Cloudflare Inc NET

On Feb. 6, Cloudflare reported quarterly earnings of 19 cents per share, which beat the analyst consensus estimate of 18 cents. Quarterly revenue came in at $459.9 million which beat the analyst consensus estimate of $452.09 million and is an increase over sales of $362.47 million from the same period last year. The company's stock gained around 25% over the past month and has a 52-week high of $144.30.
RSI Value: 79.9
NET Price Action: Shares of Cloudflare fell 1.9% to close at $141.52 on Thursday.

Fortinet Inc FTNT

On Feb. 6, Fortinet reported fourth-quarter revenue of $1.66 billion, beating the consensus estimate of $1.59 billion. The cybersecurity company reported fourth-quarter adjusted earnings of 74 cents per share, beating analyst estimates of 61 cents per share, according to Benzinga Pro. The company's stock gained around 9% over the past month and has a 52-week high of $105.82.
RSI Value: 81.6
FTNT Price Action: Shares of Fortinet fell 0.3% to close at $104.72 on Thursday.

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