PayPal and Coinbase have emerged as the most oversold stocks on Wall Street, according to the Relative Strength Index (RSI). This technical indicator, which helps traders gauge the extent of a stock”s decline, indicates that a reading below 30 signifies overselling. Both companies recently fell well below this threshold, reflecting a challenging week in the market.
This past week was particularly harsh for PayPal, which saw its RSI plummet to below 11, an unprecedented low for the company. The stock suffered a staggering loss of over 24%, marking its worst weekly performance ever. This downturn followed a disappointing earnings forecast for 2026, coupled with the announcement of CEO Alex Chriss”s departure, which sent shockwaves through investor sentiment.
Despite the grim outlook, most analysts are maintaining a “hold” rating on PayPal, with projections suggesting a potential upside of around 40% over the next year. However, analysts caution that these predictions come with no guarantees, given the volatility experienced this week.
Coinbase also faced significant pressure, with its RSI hovering around 14 after a 25% drop in share price as of Friday morning. This decline was closely tied to the broader market slump in Bitcoin, from which Coinbase, heavily reliant on cryptocurrency trading volume, could not escape. Although there was a slight recovery on Friday as Bitcoin rebounded, Coinbase still concluded the week in a vulnerable position.
Analysts remain optimistic about Coinbase, with the majority assigning it a “buy” rating. The average target price indicates a potential for growth of up to 100%, contingent on the direction of the cryptocurrency market.
The selloff extended beyond these two giants, impacting KKR & Co., a prominent player in alternative assets, which reported an RSI below 20 and dropped over 13%. Investor apprehension surrounding artificial intelligence”s potential disruption to the software industry has contributed to this decline, affecting KKR”s stock due to its connection to credit investments in that space.
Despite these concerns, a majority of analysts still favor KKR, with forecasts suggesting a possible rise of over 53% in the coming year, assuming no additional adverse developments occur.
Meanwhile, Palantir experienced a 13% drop this week, following a year of significant gains. The prevailing anxiety regarding AI”s impact on traditional software firms led to this decline. Palantir is set to report its earnings on Monday, and market participants are closely monitoring this event for insights into its future performance. Rishi Jaluria from RBC Capital Markets has maintained a bearish stance, reiterating an “underperform” rating with a price target of $50, warning that the current valuation may not be justified unless significant positive news emerges from the upcoming earnings report.
As the cryptocurrency market continues to evolve, the implications of these stock movements and their connections to digital currencies like Bitcoin will be critical for investors to watch in the coming weeks.
