Top 5 Tech Stocks You May Want To Dump In December

As of Dec. 7, 2023, five 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.

Porch Group, Inc. PRCH

• On Nov. 7, Porch reported better-than-expected third-quarter sales results. "We are pleased to share our financial results with positive Adjusted EBITDA of $8.8 million," said Matt Ehrlichman, Chief Executive Officer, Chairman and Founder. The company’s stock jumped around 31% over the past month and has a 52-week high of $3.99 .
• RSI Value: 85.36
• PRCH Price Action: Shares of Porch Group gained 24.7% to close at $2.07 on Wednesday.

Neonode Inc. NEON

• On Nov. 9, Neonode posted a wider quarterly loss. "Our licensing revenues in Q3 were slightly lower than in Q2 and the same period last year, but our licensing business shows good long-term stability and licensing revenues year-to-date are on a similar level as last year," said Dr. Urban Forssell, Neonode's CEO. The company’s stock gained around 49% over the past five days and has a 52-week high of $14.75.
• RSI Value: 85.75
• NEON Price Action: Shares of Neonode gained 22.8% to close at $1.83 on Wednesday.

Verint Systems Inc. VRNT

• On Dec. 6, Verint Systems reported better-than-expected financial results for its third quarter and issued guidance. "We are pleased to have overachieved our revenue and non-GAAP diluted EPS expectations in Q3 and believe we are on track to complete the year with strong 11% revenue growth in Q4," said Dan Bodner, Verint CEO. The company’s stock jumped around 14% over the past month and has a 52-week high of $40.71.
• RSI Value: 72.19
• VRNT Price Action: Shares of Verint fell 1% to close at $24.03 on Wednesday.

Zoom Video Communications, Inc. ZM

• On Nov. 20, Zoom Video Communications reported stronger-than-expected earnings and sales results for its third quarter. “In Q3, revenue came in ahead of guidance as we bolstered Zoom’s all-in-one intelligent collaboration platform with advanced new capabilities like Zoom AI Companion and continued to evolve our customer and employee engagement solutions,” said Eric S. Yuan, Zoom founder, and CEO. The company’s stock gained around 13% over the past month and has a 52-week high is $85.13.
• RSI Value: 71.45
• ZM Price Action: Shares of Zoom Video gained 3.2% to close at $70.94 on Wednesday.

Wipro Limited WIT

• On Oct. 18, Wipro reported second-quarter gross revenue of $2.71 billion, flattish Y/Y, missing the consensus of $2.77 billion. Thierry Delaporte, CEO and Managing Director, said, "We ended the second quarter with 22 accounts above the $100M range, which is double the number we had in FY'21. Our large deal total contract value reached $1.3 billion—highest in the last nine quarters." The company’s stock jumped around 9% over the past month and has a 52-week high of $5.31.
• RSI Value: 74.46
• WIT Price Action: Shares of Wipro gained 3.5% to close at $4.97 on Wednesday.

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