Top 5 Tech Stocks That May Fall Off A Cliff This Quarter

Author: Lisa Levin | March 24, 2023 08:41am

The most overbought stocks in the information technology 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 href="https://www.benzinga.com/topic/rsi"> RSI is above 70.

Here’s the latest list of major overbought players in this sector.

eMagin Corporation (NYSE:EMAN)

• eMagin reported fourth-quarter FY22 revenue growth of 17% year-on-year to $8.39 million. “We achieved near-record revenues of $8.4 million in the fourth quarter and full-year 2022 revenues of $30.5 million,” said eMagin CEO Andrew G. Sculley. “This represents significant growth relative to the fourth quarter and full year of 2021.” The company’s stock has a 52-week high of $2.30 .
• RSI Value: 72.37
• EMAN Price Action: Shares of eMagin dropped 7% to close at $1.85 on Thursday.

Kingsoft Cloud Holdings Limited (NASDAQ:KC)

• Kingsoft Cloud Holdings successfully listed on the Hong Kong Stock Exchange. The company’s stock has a 52-week high of $7.15.
• RSI Value: 74.43
• KC Price Action: Shares of Kingsoft Cloud jumped 14.9% to close at $6.01 on Thursday.

Daktronics, Inc. (NASDAQ:DAKT)

• Daktronics posted a profit for the third quarter. Reece Kurtenbach, Daktronics' Chairman, President, and Chief Executive Officer said, "Our deliberate actions to carefully align our production planning, inventory, and labor force to our strong customer demand are proving successful, as evidenced by our record sales and improved gross profit margins, operating income and cash flow during the third quarter. As we disclosed at the end of the last reported quarter, we have a robust order pipeline and backlog and improving revenue conversion." The company has a 52-week high of $5.36.
• RSI Value: 74.02
• DAKT Price Action: Shares of Daktronics fell 2.8% to close at $5.13 on Thursday.

Advanced Micro Devices, Inc. (NASDAQ:AMD)

• Dan Loeb’s Third Point Management recently opened a passive stake in AMD. The company’s 52-week high is $125.67.
• RSI Value: 74.87
• AMD Price Action: Shares of Advanced Micro Devices rose 2.8% to close at $100.28 on Thursday.

Cvent Holding Corp. (NASDAQ:CVT)

• Cvent announced it will be acquired by Blackstone for $8.50 per share. The company has a 52-week high of $8.40.
• RSI Value: 70.40
• CVT Price Action: Shares of Cvent Holding fell 0.2% to settle at $8.34 on Thursday.

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Posted In: AMD CVT DAKT EMAN KC