Netflix and Amazon are among the most oversold stocks on Wall Street
Several big-name stocks got caught in this week’s market sell-off, leaving some at levels that investors could take advantage of to reap future gains for a trade. The three major U.S. stock averages declined this week, in big part, due to fears that rapid developments in artificial intelligence will disrupt business profits. Shares of several software giants were among the first to decline for this reason, followed by drops in gaming, insurance, real estate , media and trucking and logistics companies. Netflix and Fox got caught in the carnage, declining 6.5% and 11.6% this week, respectively, on concerns that AI-generated content could threaten streaming and linear platforms. CNBC Pro found that stocks are now considered technically oversold, meaning they could stage a comeback in the near term. A stock is considered oversold if its 14-day relative strength index is below 30. On the other hand, stocks with a 14-day RSI above 70 are considered overbought, signaling a potential selling opportunity. Take a look at Wall Street’s most oversold names: Fox Class A shares are considered oversold according to its 14-day RSI of almost 18.6. Netflix, which also made the list, has an RSI of about 24. Although both names sold off this week, Wells Fargo analyst Steven Cahall said Thursday in a note to clients that the move lower in media stocks could be overdone. Fox “is mostly live sports & news so the read-across from AI threats seems wrong,” he wrote. The most oversold name on the Street, technically speaking, was DoorDash . Shares of the delivery service, which has an RSI of 16.45, lost more than 12% week to date. DoorDash earnings are scheduled for Wednesday. Bank of America on Thursday reiterated its buy rating ahead of the results, saying its first-quarter outlook “could be a clearing event if top line is strong & full year margin outlook is relatively unchanged.” Moreover, the firm said in its note to clients that it sees limited AI risk for DoorDash given its strong restaurant, courier and subscriber network. Other oversold names from this week include Intuit , Booking Holdings and Amazon . “Magnificent Seven” member Amazon lost 5.5% this week, bringing its year-to-date loss to roughly 14% amid a rough start to 2026 for technology names. Take a look at the Street’s most overbought names: Real estate companies Equinix and Texas Pacific Land are considered overbought with RSI levels at about 85 and 82, respectively. Equinix shares rallied 12.7% this week after the data center REIT on Wednesday gave strong first-quarter guidance and increased its dividend for the 11th straight year. The company’s sales have gotten a big boost from data center demand. Verizon , Marriott International and Motorola Solutions also made the overbought list.
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