3 Tech And Telecom Stocks Poised for Potential Growth 3 Tech And Telecom Stocks Poised for Potential Growth

Written By Michael Gary Scott

In the domain of communication services, lies an intriguing opportunity to engage with undervalued firms currently adrift in oversold waters.

RSI, an esteemed momentum indicator, unveils the contrast between a stock’s vigor during ascents and descents in price action. This insight allows traders a glimpse into the potential short-term performance of a stock. Typically, when RSI dips below 30, an asset is classified as oversold, as per market insights.

Here lays a compilation of key oversold figures in the sector, marked by an RSI teetering around or below 30.

New Heights in Surreal Symphony – TME Takes the Stage Amidst the Blues TME

  • August 13 saw Tencent Music Entertainment unveil a fiscal second-quarter 2024 revenue dip of 1.7% year-over-year to $985.00 million (7.16 billion Chinese yuan), falling short of the analysts’ consensus of $996.68 million. Expressing optimism, Cussion Pang, Executive Chairman of TME, noted, “We are pleased to report another quarter of robust results driven by the strong performance of our online music services. With over 10 million net subscriber additions in the first half of 2024 and ARPPU expansion, we continue to break new grounds within China’s streaming landscape.” The entity’s stock witnessed a 10% slump over the past month, dwelling close to its 52-week low of $5.96.
  • RSI Value: 29.61
  • TME Price Action: Tencent Music shares slipped 2.5% to conclude at $9.51 on Friday.

The Enigmatic Decline – DouYu’s Disappointment Encounters a StumbleDOYU

  • On September 12, DouYu International disclosed a fiscal second-quarter revenue descent of 25.9% to $142.01 million year-on-year, underwhelming the analysts’ consensus of $186.96 million. The organization’s shares tumbled by 59% over the past month, clinging near its 52-week low of $6.29.
  • RSI Value: 24.49
  • DOYU Price Action: DouYu Internationalsaw a 2.2% upsurge, closing at $7.79 on Friday.
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Webtoon’s Whirlwind – Riding the Waves of UncertaintyWBTN

  • On August 8, Webtoon Entertainment staggered under the weight of second-quarter revenue results below expectations. Founder and CEO Junkoo Kim expressed, “In June, we brought WEBTOON to the public markets, introducing our revolutionary mobile storytelling formats and global IP & creator ecosystem to the investment community. After nearly two decades of innovation as the pioneers of the webcomic format, we’re thrilled to begin the next chapter of our story as we continue to build our business and help our creators earn money and build global fandoms for their work.” The firm’s shares endured a 15% dip over the past five days, close to the abyss of its 52-week low at $10.22.
  • RSI Value: 28.30
  • WBTN Price Action: Webtoon Entertainment waved off the somber mood with a 1.1% rally, ending at $10.42 on Friday.

Read on for more captivating insights!