This Top Canadian Tech Stock is Way Oversold

Tucows (TSX:TC)(NASDAQ:TCX) is a Toronto-based technology company and one of the largest domain registrars in the world. Shares dropped 1.77% in on May 23. The stock has plunged 28.7% over the past month.

In a mid-April article for Baystreet, I recommended that shareholders take profits after the stock hit an all-time high. Now it looks like it may be nearing time to jump back in. Tucows stock has taken a big hit after the company released its first quarter 2019 results. The company missed expectations and reported revenues of $79 million, adjusted EBITDA of $9.4 million, and eanings per share of $0.26.

Tucows was hit hard by carrier penalties at Ting Mobile, which dragged on revenues in its Network Access division. Nonetheless, the company reiterated its guidance of $62 million in 2019 EBITDA. There is considerable excitement for its fibre business, and with good reason. Tucows expects to double its presence in US households by the end of 2019.

Tucows is now trading at the low end of its 52-week range, which is stunning considering it had reached all-time highs in April. Shares dropped to an RSI of 22 as of close on May 23. This puts the stock well into technically oversold territory. Broader headwinds in the market in response to U.S.-China trade tensions make it a tough time to buy, but the selloff at Tucows appears to be an overreaction at this stage.