Top 4 Tech And Telecom Stocks That May Crash This Month

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.

Harte Hanks, Inc. (NASDAQ:HHS)

• Harte-Hanks posted weaker-than-expected quarterly results. Kirk Davis, Chief Executive officer, said: "In reporting my first quarter since joining Harte Hanks in June, I undertook this role against a backdrop of uncertainty. In May, prior management reported reduced visibility and projected challenging year-over-year comparisons attributable to macroeconomic headwinds, customer weakness in the financial services and technology sectors, and substantial non-recurring revenue attributable to pandemic-related projects. The revised outlook came with a commitment to preserve profitability, and a reorganization was announced. While our revenue performance and comparisons reflect prior management's assessment, we maintain a strong balance sheet and cash position, no debt, a $25 million credit facility, and considerable potential as we plan for our 101st year of continuous service." The company’s stock has a 52-week high of $14.24. .
• RSI Value: 72.84
• HHS Price Action: Shares of Harte Hanks gained 0.9% to close at $7.08 on Thursday.

Travelzoo (NASDAQ:TZOO)

• Travelzoo reported better-than-expected third-quarter financial results and announced a 1 million share buyback. "Year-over-year revenue growth accelerated from Q2 to Q3," said Holger Bartel, Travelzoo's Global CEO. "We will continue to leverage Travelzoo's global reach, trusted brand, and strong relationships with top travel suppliers to negotiate more exclusive offers for members." The company’s stock has a 52-week high of $10.86.
• RSI Value: 73.75
• TZOO Price Action: Shares of Travelzoo fell 0.4% to close at $7.93 on Thursday.

Direct Digital Holdings, Inc. (NASDAQ:DRCT)

• Direct Digital reported better-than-expected third-quarter financial results. Mark D. Walker, Chairman and Chief Executive Officer, commented, "In recent quarters, we have made significant investments in our technology stack, advertising platform and operational structure. We initially expected to see the impact of these investments in 2024, however, we are pleased to report that these benefits have arrived much earlier in 2023." The company has a 52-week high of $6.53.
• RSI Value: 75.18
• DRCT Price Action: Shares of Direct Digital Holdings gained 4% to close at $2.61 on Thursday.

Roblox Corporation (NYSE:RBLX)

• For the recent quarter, Roblox printed an earnings loss of 45 cents per share on FY23 bookings growth of $839.453 million. "Our strong third quarter results reflect our continued platform innovation and growth across all age groups and geographies. We are executing against our key priorities to enable deeper forms of immersion, communication and Avatar expression on the platform, while investing in artificial intelligence, brands and advertising, to drive future growth," said David Baszucki, founder and CEO of Roblox. The company’s 52-week high is $47.65.
• RSI Value: 71.94
• RBLX Price Action: Shares of Roblox fell 3% to close at $38.05 on Thursday.

 

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