Benzinga - by Avi Kapoor, Benzinga Staff Writer.
As of Jan. 26, 2024, four 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.
Fox Corporation (NASDAQ: FOX)
- On Jan. 17, Sinclair and FOX Corporation announced that their broadcast divisions have reached an agreement for a multi-year renewal of all FOX affiliations in Sinclair markets. "We are pleased to extend our partnership with Sinclair, and we are delighted these stations will continue to be the top destination in these 41 markets for our shared viewers to access all of FOX's leading Entertainment and Sports content," said David Espinosa, President of Distribution for FOX Corporation. The company’s stock jumped around 7% over the past month and has a 52-week high of $34.42 .
- RSI Value: 74.53
- FOX Price Action: Shares of Fox Corporation gained 2.2% to close at $29.71 on Thursday.
- On Nov. 7, AdTheorent Holding posted a loss for its third quarter. “We made tangible progress in the third quarter and are encouraged by our return to growth. Results were particularly robust in areas of investment, including self-service, AdTheorent Health, and our algorithm-based Predictive Audience solutions, all of which saw exceptional growth during the quarter, as customers responded enthusiastically to our differentiated offerings,” said James Lawson, CEO of AdTheorent. The company’s stock gained around 109% over the past month and has a 52-week high of $3.00.
- RSI Value: 83.24
- ADTH Price Action: Shares of AdTheorent Holding rose 3.6% to close at $2.88 on Thursday.
- On Jan. 24, Alphabet’s Google settled a patent lawsuit concerning AI technology, which demanded a staggering $1.67 billion. The company’s stock jumped around 5% over the past five days and has a 52-week high of $154.76.
- RSI Value: 73.92
- GOOG Price Action: Shares of Alphabet gained 2.2% to close at $153.64 on Thursday.
- On Jan. 23, Netflix reported fourth-quarter revenue of $8.83 billion, which was up 12.5% year-over-year. The total came in ahead of a Street consensus estimate of $8.72 billion, according to data from Benzinga Pro. "We're not interested in acquiring linear assets. Nor do we believe that further M&A among traditional entertainment companies will materially change the competitive environment," according to Netflix. The company’s stock jumped around 16% over the past five days and has a 52-week high is $563.46.
- RSI Value: 78.03
- NFLX Price Action: Shares of Netflix gained 3.1% to close at $562.00 on Thursday.
Read More: Intel, American Express And 3 Stocks To Watch Heading Into Friday
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.