Tech stocks often provide the craziest growth numbers in the market during a bull run.

However, they can also drop fast at the first signs of a shaky economy. While these environments can sometimes trigger investors to look for an exit, they can also be an opportunity to buy oversold tech stocks at a steep discount. The Relative Strength Indicator, or RSI, is an excellent tool for identifying oversold companies, allowing investors to pick up stellar market candidates that fell victim to often disproportionate selloffs and knee-jerk reactions.

So, let’s look at three oversold tech stocks that present golden opportunities for a bounceback. 

Dynatrace, Inc. (DT)

Artificial Intelligence (AI) automation is becoming the industry norm, making Dynatrace, Inc. (NYSE:DT) a great contender in the space.

The company has a unified observability and security platform with analytics and automation for cloud environments. Its products include cloud automation, application security, log management and analytics. Further, they are used in various applications, like having complete visibility in a multi-clouded and hybrid environment and real-time detection. Recently, DT announced the launch of its AI Observability. This allows its client to look into all its AI-powered applications and quickly find necessary bottlenecks and root causes of issues. 

The company’s stock price is down more than 18% since it released its Q3 earnings report on February 8. This predicament is a curious display of the sensitivity of tech stocks with even the slightest bad news. 

Dynatrace claims it “exceeds high end of [company] guidance across all Q3 metrics.” And it’s true: total revenue was 23% higher, and GAAP EPS ended at $0.14 from $0.05 year over year (YOY). Annual recurring revenue (ARR) increased 23%, and subscription revenue jumped 25%. But these two metrics slightly missed Wall Street estimates. ARR and subscription ARR are critical metrics to software companies, and missing these estimates was enough to trigger a sell-off. 

Not only that, analysts remain optimistic with DT, giving it a strong buy rating and setting a high price estimate of $75. Its 14-day RSI is at 33.13, just barely above the oversold level. This makes Dynatrace one of the best oversold tech stocks to watch. 

Coursera, Inc. (COUR)

Coursera, Inc. (NYSE:COUR) offers a platform that connects learners and educators with educational content that is accessible and relevant to its users. COUR has university partners specializing in various fields like data science, business, technology, and more. Also, it offers a subscription pricing model, Coursera Plus, that gives learners access to specializations, guided projects, professional certificates, and thousands of courses at a small fee. 

The stock has been experiencing intense selling pressure this year. Some analysts expect AI headwinds to affect COUR’s financial performance, a sentiment reflected by the company’s guidance.

While investors may be clamoring for the exit, this may still be an opportunity for the brave. COUR reported 21% growth in full-year revenue, reaching $635.8 million. In addition, the company highlighted growth in its degree, enterprise, and consumer segments. This is due mainly from the strong demand for entry-level professional certificates and new generative AI courses.

COUR expects 2024’s revenue to grow around 15% to $730-$740 million—slightly slower than 2023’s growth, yet perhaps not enough reason to discount the stock entirely. The year has just started, and anything can happen. Coursera’s 29.87 14-day RSI ranks it as one of the most oversold tech stocks now, offering a potential buying opportunity for interested investors. 

Akamai Technologies, Inc. (AKAM)

Distributed Denial-of-Service (DDoS) Attacks and cyberattacks are everyday occurrances in this digital age. Therefore, cybersecurity demands are increasing.

Akamai Technologies, Inc. (NASDAQ:AKAM) holds a good position to meet those demands. The company provides its customers with security, computing, and content delivery solutions. This includes API protection, bot management, DDoS mitigation, global traffic management, and cloud computing services. 

But, AKAM saw a 13% decline since its latest financials came out. Analysts cite the continuous narrowing of revenues from its Delivery segment as the reason for the drop. Still, the report did have some good news.

Full-year revenue came in at $3.81 billion, a 5% increase YOY. Also, the Security and Compute segments accounted for 60% of its revenue, growing 17% in 2023. And, the company provided optimistic guidance for Q1 and FY 2024. Total revenue is expected to grow between 6-8%, and the Security and Compute segments are anticipated to reach double-digit growth. To no one’s surprise, the Delivery segment is conspicuously absent in the guidance, indicating that the company expects it to fall even more in the coming year. 

AKAM’s 14-day RSI is at 28.12 and well into oversold levels. Still, the company’s strongly focuses on profitability and drives to expand its security offerings and cloud computing platforms. Therefore, this presents a solid opportunity to buy this oversold tech stock while it is cheap. 

On the date of publication, Rick Orford did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.