As of Aug. 13, 2025, two stocks in the communication services sector could be flashing a real warning to investors who value momentum as a key criteria in their trading decisions.

The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered overbought when the RSI is above 70, according to Benzinga Pro.

Here's the latest list of major overbought players in this sector.

Webtoon Entertainment Inc (NASDAQ:WBTN)

On Aug.13, WEBTOON Entertainment ( WBTN ) announced a partnership with Disney to bring titles featuring characters from Marvel, Star Wars, Disney Studios and 20th Century Studios to its platform. The company's stock jumped around 1% over the past five days and has a 52-week high of $14.69.

RSI Value: 74.4                                

WBTN Price Action: Shares of Webtoon Entertainment ( WBTN ) gained 2.4% to close at $9.36 on Tuesday.

Edge Stock Ratings: 19.03 Momentum score with Value at 76.03.

Sea Ltd (NYSE:SE)

On Aug. 12, Sea reported better-than-expected quarterly sales results. “The momentum from our strong start to 2025 has continued into the second quarter. All three of our businesses have delivered robust, healthy growth, giving us greater confidence of delivering another great year,” said Forrest Li, Sea’s Chairman and Chief Executive Officer. “Given the high potential of our markets and the stage we are at in our business now, we will continue to prioritize growth, which will pave the way for us to maximize our long-term profitability. At the same time, our company has reached a stage where we can pursue growth opportunities while improving profitability.” The company's stock gained around 15% over the past month and has a 52-week high of $178.00.

RSI Value: 77.7

SE Price Action: Shares of Sea gained 19.1% to close at $174.12 on Tuesday.

Curious about other BZ Edge Rankings? Click here to discover how similar stocks measure up.

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