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Tech Giants Teeter on the Edge as Stocks Deemed Overbought
9 Aug
Summary
- Apple and Alphabet stocks considered overbought based on technical metric
- Apple gains 13.3% this week, its biggest weekly jump in over 5 years
- The Trade Desk plunges 37% this week, its worst day ever
As of August 9th, 2025, the tech-heavy Nasdaq Composite has led the market's recent rally, gaining 3.9% this week. However, a technical analysis suggests that some of Wall Street's biggest names, including Apple and Alphabet, may be overbought and due for a correction.
The analysis, based on the 14-day relative strength index (RSI), identified several stocks with an RSI above 70, indicating they are considered overbought. Apple, with an RSI of 72, has been a standout, gaining 13.3% this week - its largest weekly jump in over five years. This surge came after the company announced a $100 billion increase in its U.S. investment, bringing its total commitment to $600 billion.
Alphabet, up 6.5% this week and with an RSI of 75, was another name on the overbought list. In contrast, some stocks have seen significant declines, with Airbnb falling 5.3% this week and The Trade Desk plunging 37% on Friday, marking its worst day ever. Investors grew concerned about rising competition and inflationary pressures stemming from tariffs.
As the market navigates these shifting tides, investors will be closely watching for any signs of a pullback in the tech sector's recent run-up.
