Top 5 Tech And Telecom Stocks That Are Ticking Portfolio Bombs

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.

Pinterest, Inc. PINS

• Wells Fargo upgraded the stock to Overweight from Equal-Weight. The company’s stock has a 52-week high of $29.27. .
• RSI Value: 70.15
• PINS Price Action: Shares of Pinterest fell 1.8% to close at $27.64 on Thursday.

Advantage Solutions Inc. ADV

• Advantage Solutions reported better-than-expected first-quarter sales results. Advantage Solutions CEO, Dave Peacock said, “Although the macro environment remains challenging, our year-over-year topline growth of approximately 11% in the first quarter represents continued expansion in our must-have services as well as success in pricing realization as we navigate the higher cost environment hand-in-hand with our clients and customers.” The company’s stock has a 52-week high of $4.64.
• RSI Value: 71.03
• ADV Price Action: Shares of Advantage Solutions fell 1.3% to close at $2.33 on Thursday.

Take-Two Interactive Software, Inc. TTWO

• Take-Two Interactive posted downbeat quarterly earnings. "We finished fiscal 2023 with momentum. Our fourth quarter Net Bookings were $1.4 billion, above the high end of our guidance range, driven by Grand Theft Auto V and Grand Theft Auto Online, Red Dead Redemption 2, and Zynga’s mobile portfolio," said Strauss Zelnick, Chairman and CEO of Take-Two. The company has a 52-week high of $149.04.
• RSI Value: 74.89
• TTWO Price Action: Shares of Take-Two Interactive fell 0.4% to close at $145.47 on Thursday.

The New York Times Company NYT

• IAC, News Corp and New York Times are among publishers considering forming coalition to address impact of AI, the Wall Street Journal said. The company’s 52-week high is $42.40.
• RSI Value: 71.15
• NYT Price Action: Shares of New York Times rose 0.1% to close at $39.66 on Thursday.

Snap Inc. SNAP

• Wells Fargo initiated coverage on Snap with an Equal-Weight rating and announced a price target of $10. The company has a 52-week high of $16.55.
• RSI Value: 71.88
• SNAP Price Action: Shares of Snap rose 0.3% to settle at $11.68 on Thursday.

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