As of March 18, 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.
Electronic Arts Inc EA
- On Feb. 4, Electronic Arts announced preliminary financial results for its third quarter ended Dec. 31, 2024. “The record success of our EA SPORTS FC 25 Team of the Year event demonstrates our creative teams’ ability to adapt, innovate, and execute at scale,” said Andrew Wilson, CEO of Electronic Arts. “As we build on this momentum across EA, we are confident in a return to growth in FY26 and beyond as we bring our next wave of iconic entertainment to players and fans worldwide.” The company's stock gained around 11% over the past month and has a 52-week high of $168.50.
- RSI Value: 70.3
- EA Price Action: Shares of Electronic Arts gained 3.1% to close at $142.90 on Monday.
Baidu Inc BIDU
- On March 12, Baidu announced completion of CNY10 billion offering of CNY-denominated senior notes. The company's stock gained around 13% over the past month and has a 52-week high of $116.25.
- RSI Value: 74
- BIDU Price Action: Shares of Baidu closed at $102.27 on Monday.
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