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Warning Signs: Webtoon Entertainment and Sea Ltd Stocks at Risk of Falling Off a Cliff in Q3
ByAinvest
Thursday, Aug 14, 2025 3:55 pm ET1min read
Two communication services stocks, Webtoon Entertainment Inc (WBTN) and Sea Ltd (SE), have reached overbought levels according to their RSI (Relative Strength Index) values of 74.4 and 77.7, respectively. WBTN has a 52-week high of $14.69 and SE has a 52-week high of $178.00. Both stocks have experienced significant price gains over the past month.
Two prominent communication services stocks, Webtoon Entertainment Inc (WBTN) and Sea Ltd (SE), have reached overbought levels according to their RSI (Relative Strength Index) values of 74.4 and 77.7, respectively [1][2]. These high RSI values indicate that both stocks may be overvalued and could be due for a correction in the third quarter (Q3) of 2025.Webtoon Entertainment Inc (WBTN) has seen its stock price rise significantly, gaining 2.4% over the past five days and reaching a 52-week high of $14.69. The company's partnership with Disney to bring titles featuring characters from Marvel, Star Wars, Disney Studios, and 20th Century Studios to its platform has contributed to this upward momentum. However, the stock's RSI value of 74.4 suggests that it may be overbought, warranting caution among investors [1].
Similarly, Sea Ltd (SE) has experienced a substantial price increase, rising 19.1% over the past month and reaching a 52-week high of $178.00. The company reported better-than-expected quarterly sales results, with strong growth across its digital entertainment, gaming, and e-commerce sectors. Despite these positive financial results, the stock's RSI value of 77.7 indicates that it may also be overbought, raising concerns about potential price corrections in the coming quarters [2].
Investors should exercise caution when considering these stocks, especially given their high RSI values. While the recent gains can be attributed to positive sentiment and strong fundamentals, the high RSI values suggest that the stocks may be overvalued. It is essential to monitor the performance of these two stocks closely in Q3 and consider the broader market conditions before making investment decisions.
References:
[1] https://www.benzinga.com/trading-ideas/short-ideas/25/08/47088656/top-2-tech-telecom-stocks-that-may-fall-off-a-cliff-in-q3
[2] https://www.ainvest.com/news/overbought-tech-telecom-stocks-watch-webtoon-entertainment-sea-2508/
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