A brutal week of selling left multiple stocks with technical readings indicating extreme oversold conditions. The relative strength indicator—which measures the magnitude and speed of price moves—dropped below 20 for numerous stocks, signaling deeply oversold conditions. A 14-day RSI below 30 is considered oversold and could be a promising entry point for investors. Readings under 20 suggest more severe oversold conditions.
Three stocks ended last week with RSI readings below 20 after declining 13-25% in just five trading sessions. Each faces company-specific challenges that triggered the selloffs, but analyst price targets suggest the market overreacted. Wall Street’s consensus projections imply upside ranging from 40% to more than 100% over the next 12 months.
PayPal Holdings Inc. (PYPL) recorded the most extreme oversold reading with an RSI of 10.9, currently trading around $41 after plummeting 24.3% last week in what would mark the payments processor’s worst week ever. The stock collapsed following Tuesday’s fourth-quarter earnings report that beat on revenue but delivered weak 2026 profit guidance.
Management announced that CEO Alex Chriss is stepping down after less than two years in the role, adding leadership uncertainty to the already challenging guidance. Chriss had been hired to reinvigorate PayPal’s innovation and reverse market share losses to competitors including Apple Pay, Block’s Cash App, and traditional card networks.
The 2026 profit outlook disappointed investors who had expected better operating leverage as PayPal scales its user base and transaction volumes. PayPal reported 439 million active accounts in Q4 2025, providing a substantial base of users generating transaction volumes and cash flows.
Despite the severe stock decline, Wall Street maintains a hold consensus rating with an average price target implying nearly 40% upside over the next 12 months. The technical setup shows extreme selling with an RSI below 11.
Coinbase Global Inc. (COIN) posted an RSI of 14.1, currently trading around $166 after tumbling 25% last week as bitcoin declined. The cryptocurrency fell from approximately $90,000 in mid-January to around $69,500 currently—a drop of roughly 23% over the past month. The stock’s tight correlation with cryptocurrency prices creates volatile swings that amplify bitcoin’s movements.
Coinbase reports earnings Thursday, February 13th, providing immediate catalyst potential if results exceed expectations or management offers constructive commentary on trading volumes and regulatory developments.
Cantor Fitzgerald recently lowered its price target from $277 to $221 per share—still implying 33% upside from current levels despite the reduction. The firm maintained an overweight rating. The average analyst price target suggests shares could more than double over the next 12 months.
Bitcoin recovered modestly on Friday, and Coinbase shares tend to move with exaggerated correlation to bitcoin—when crypto rallies, Coinbase typically outperforms, and when crypto sells off, Coinbase amplifies the decline.
Coinbase’s business model generates the majority of revenue from transaction fees rather than asset appreciation, meaning the company profits from volatility itself rather than directional moves in crypto prices.
The technical setup shows extreme oversold conditions after selling pressure. An RSI of 14 suggests limited buying appetite remained until Friday’s stabilization. Thursday’s earnings report represents a catalyst that could either validate the selloff or reveal that fears were overblown.
KKR & Co. Inc. (KKR) ended the week with an RSI of 19.3, currently trading around $106 after declining 13.2% amid fears that artificial intelligence disruption could negatively affect the application software industry—a sector where KKR and other private credit providers have exposure through their investment portfolios.
The selloff in KKR reflects contagion from software stock weakness rather than company-specific news, as investors worried that AI-driven disruption could impair the value of KKR’s holdings.
KKR announced a partnership with HMC Capital to invest up to A$603 million in an energy transition platform, including A$355 million in preferred equity at 14% over seven years. This deal demonstrates KKR’s ability to deploy capital into sectors beyond traditional private equity and credit.
Morgan Stanley noted the energy transition partnership has both positive and negative aspects. Positively, securing KKR as a partner eased risks of HMC facing capital constraints. However, MS pointed out the transaction resembles structured financing more than a typical joint venture, with KKR guaranteed 14% annual returns rather than earning management fees as a percentage of assets under management.
The majority of analysts covering KKR maintain buy ratings, with an average price target implying more than 53% upside over the coming year.
The technical setup shows the stock approaching oversold extremes. An RSI of 19 indicates heavy selling pressure, creating conditions where positive catalysts could trigger recovery. The stock bounced modestly on Friday, suggesting initial stabilization.
These three stocks offer different approaches to playing technical oversold bounces. PayPal faces a turnaround situation with leadership transition and weak guidance. Coinbase provides crypto exposure with immediate earnings catalyst potential. KKR trades at depressed levels after contagion selling from software weakness.
The common thread is extreme technical conditions—RSI readings between 11 and 19—that could reverse if positive catalysts emerge. Each name faces legitimate challenges that triggered the selloffs, but the magnitude of declines relative to the news suggests technical extremes.
