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.

Travelzoo TZOO

  • Travelzoo posted better-than-expected first-quarter results. "We will continue our strategy of leveraging Travelzoo's global reach, trusted brand, and strong relationships with top travel suppliers to negotiate more exclusive offers for Travelzoo members," said Holger Bartel, Travelzoo's Global CEO. The company’s stock has a 52-week high of $9.59 .
  • RSI Value: 73.04
  • TZOO Price Action: Shares of Travelzoo fell 3.8% to close at $8.66 on Monday.

Alphabet Inc. GOOGL

  • Alphabet plans to add new features to its Image Search tool to help users find the authentic source of an image in a bid to identify misleading AI pictures. The company’s stock has a 52-week high of $122.43.
  • RSI Value: 71.38
  • GOOGL Price Action: Shares of Alphabet fell 0.9% to close at $116.51 on Monday.

Vivid Seats Inc. SEAT

  • Vivid Seats reported better-than-expected first-quarter sales results and raised FY23 revenue guidance above estimates. “We are off to an excellent start in 2023. The live event environment was robust in the first quarter with exciting event supply meeting exuberant fan demand,” said Stan Chia, Vivid Seats CEO. The company has a 52-week high of $9.89.
  • RSI Value: 78.16
  • SEAT Price Action: Shares of Vivid Seats fell 1% to close at $9.52 on Monday.

Paltalk, Inc. PALT

  • Paltalk posted a wider-than-expected quarterly loss. Jason Katz, Chairman and CEO of Paltalk, commented, “Despite a decline in revenue, we reduced our operating expenses, which enabled us to reduce the cash used in operations by $0.4 million for the three months ended March 31, 2023 compared to the prior year period.” The company’s 52-week high is $4.60.
  • RSI Value: 72.08
  • PALT Price Action: Shares of Paltalk fell 2.7% to close at $2.50 on Monday.

Magnite, Inc. MGNI

  • Magnite reported better-than-expected first-quarter financial results. “We delivered strong results in Q1, with both total revenue ex-TAC and CTV revenue ex-TAC exceeding the high end of our guidance,” said Michael G. Barrett, President and CEO of Magnite. The company has a 52-week high of $14.21.
  • RSI Value: 71.15
  • MGNI Price Action: Shares of Magnite fell 3% to settle at $11.55 on Monday.


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