Top 3 Tech Stocks That May Plunge This Month
Portfolio Pulse from Avi Kapoor
Three tech stocks, SAP SE (NYSE:SAP), LiveRamp Holdings, Inc. (NYSE:RAMP), and ASML Holding N.V. (NASDAQ:ASML), are showing overbought signals with RSI values above 70, indicating potential short-term price declines. SAP's revenue increased by 5% and its stock rose 10% over five days. LiveRamp is acquiring Habu for $200 million and reported higher-than-expected preliminary revenue, with its stock up 9% over five days. ASML posted strong quarterly earnings and expects significant growth in 2025, with its stock also up 10% over five days.

January 24, 2024 | 1:14 pm
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NEGATIVE IMPACT
ASML Holding's upbeat earnings and positive outlook for 2025 have led to a stock increase, but an RSI of 76.36 suggests a potential short-term pullback.
ASML's stock may temporarily retract as the high RSI indicates overbuying, which typically results in a price adjustment when investors start to secure profits.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
LiveRamp's acquisition of Habu and better-than-expected revenue have driven the stock up, but an RSI of 70.46 could signal a near-term downturn.
The RSI threshold crossing indicates that RAMP may be overextended in the short term, and investors could see a price correction as the market digests the recent gains.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 85
NEGATIVE IMPACT
SAP SE reported a 5% increase in Q4 revenue and a significant rise in stock price, but with an RSI of 78.32, it may face a short-term pullback.
SAP's high RSI value suggests the stock is overbought, which often precedes a price correction as traders may take profits, leading to a short-term decline.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90