In something of a rebound week for the market, Communications stocks led the broader market higher along with consumer and tech names, while energy and utilities took the losses in post-holiday trading.
The Communication Services Select Sector SPDR Fund (XLC) rose 3.5% over the past five sessions, and Communication Services as a sector rose 4.9% in that span, tops among the 11 S&P 500 sectors.
The S&P 500 rose 1.9% in that period, with the SPDR S&P 500 Trust ETF (SPY) up 1.95%.
And for Communications, the way back is led again by some downtrodden stocks. Four of the top five large-cap gainers in Communication Services this week were also in the top five two weeks ago amid some bargain hunting: Roblox (NYSE: RBLX), up 25.5% over five sessions; Roku (ROKU), up 14.9% in that span; Snap (SNAP), rising 13.9% in the period; and Pinterest (PINS), +11.5%.
They were joined by Singapore-based digital entertainment name Sea Limited (NYSE: SE), +15.9% over five sessions. But like the others, Sea was one of the very worst-performing large-caps in the sector for the first half of 2022, down 68.7% for the six months. (Roblox, Roku, and Pinterest were all there as the second half began, too, each more than 50% lower than when they started the year.)
Communications decliners in an otherwise upbeat market week were the traditional defensive names in telecoms. The top loser among large-cap stocks in the sector was French telecom Orange (NYSE:ORAN), -8.8% over five sessions – though it was pushed by Spain’s Telefónica (NYSE: TEF), down 6.2%.
Shaw Communications (SJR) joined them on that list, though it saw its key decline come Wednesday after the failure of mediation efforts with Canadian regulators over its planned acquisition by Rogers Communications (RCI). Shaw shares dipped 3.8% on Thursday.
Ad agency giant WPP (WPP) fell 5.5% for the week as it was swept up in a Goldman Sachs cut of media/Internet coverage, on expectations for a more grand macro outlook.
The top five gainers over the past five sessions among large-cap Communications Services stocks and larger ($10B market cap or more):
- Roblox (RBLX), +25.5%;
- Sea Limited (SE), +15.9%;
- Roku (ROKU), +14.9%;
- Snap, +13.9%;
- Pinterest (PINS), +11.5%.
The five worst performers over the past five sessions among large-cap Communications Services stocks and larger ($10B market cap or more):
- Orange (ORAN), -8.8%;
- Telefónica (TEF), -6.2%;
- WPP (WPP), -5.5%;
- Shaw Communications (SJR), -5.1%;
- Formula One Group Series C (FWONK), -3.8%.