Understanding the dynamics of oversold stocks in the communication services sector can unlock promising investment opportunities. The Relative Strength Index (RSI) serves as a vital momentum indicator, contrasting a stock's upward and downward price movements to gauge its short-term performance trajectory. Typically, an asset is deemed oversold when its RSI dips below the 30-point threshold, suggesting it might be undervalued and poised for a rebound.
Among the companies showing signs of being oversold, Amber International Holding Ltd, Verizon Communications Inc, and Criteo SA stand out. Amber International has demonstrated robust performance with a significant year-over-year increase in second-quarter sales, particularly driven by its wealth management division. Similarly, Verizon has forged a strategic alliance with AST SpaceMobile, Inc., aiming to enhance direct-to-cellular connectivity for its clientele starting in 2026. Concurrently, Criteo has entered a multi-year collaboration with DoorDash, Inc., designed to amplify advertising avenues across DoorDash's expanding marketplace, encompassing various retail sectors beyond restaurants.
These developments underscore the potential for these companies to recover and grow. Amber International's focus on its institutional-first strategy and digital wealth management platform in Asia positions it for sustained expansion. Verizon's partnership signifies a commitment to extending network coverage and improving service quality, which could strengthen its market position. Criteo's alliance with DoorDash is set to tap into the burgeoning delivery market, creating new opportunities for advertisers and retailers. Investors looking to diversify their portfolios might find these tech and telecom stocks to be compelling options for the fourth quarter.