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(Seoul=Yonhap Infomax) Jang Won Lee, Senior Reporter = Oracle Corp. (NYSE: ORCL), Arista Networks Inc. (NYSE: ANET), and Uber Technologies Inc. (NYSE: UBER) have recently entered technically oversold territory following a wave of heavy selling, positioning them for a potential near-term bounce, according to market analysis.
On the 22nd (U.S. local time), CNBC identified S&P 500 constituents with a 14-day Relative Strength Index (RSI) below 30, signaling oversold conditions.
An RSI below 30 typically indicates that a stock has declined excessively and may be poised for a rebound.
Oracle, with an RSI of 24.6, dropped 5.5% over the past week, including a sharp 6% plunge on the 21st alone.
Investors have expressed concerns over elevated valuations tied to artificial intelligence (AI) companies and risks associated with AI capital expenditures funded through bond issuance, including worries about circular trading.
Arista Networks posted an RSI of 25, the highest among the stocks selected by CNBC. The company’s shares fell 9% over the past week and nearly 26% in November alone, despite third-quarter earnings beating expectations. The decline was attributed to fourth-quarter revenue guidance falling short of market forecasts.
Uber shares declined 8.5% this week, also entering oversold territory. While Uber’s third-quarter revenue exceeded expectations, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) missed estimates.
Eric Sheridan, analyst at Goldman Sachs, noted, “Demand in the mobility and delivery segments remains stronger than anticipated,” adding, “We are closely watching the long-term impact of changes in the autonomous vehicle (AV) landscape on Uber’s network.” Uber’s RSI stood at 24.6.
Super Micro Computer Inc. (NASDAQ: SMCI), with an RSI of 24.8, plunged 13.3% over the week, also entering oversold territory.
[Table] Oversold Stocks with RSI Below 30 (Source: CNBC)
| Company (Ticker) | RSI | Weekly Decline | Analyst Rating | Upside Potential vs. Avg. Target Price |
| Arista Networks (ANET) | 25.0 | -9.0% | Buy | 36.1% |
| Super Micro Computer (SMCI) | 24.8 | -13.3% | Hold | 40.7% |
| Oracle (ORCL) | 24.6 | -5.5% | Buy | 71.8% |
| Uber Technologies (UBER) | 24.6 | -9.0% | Buy | 33.3% |
| Dell Technologies (DELL) | 24.4 | -12.2% | Buy | 33.2% |
| Palo Alto Networks (PANW) | 23.8 | -9.8% | Buy | 22.1% |
| BlackRock (BLK) | 23.5 | -6.2% | Buy | 30.6% |
| Fiserv (FISV) | 16.9 | -5.8% | Hold | 61.9% |
jang73@yna.co.kr
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