Another week of market beatings left very few winners and plenty of losers in communications stocks, which as a group performed even worse than the poor results of the previous week – but on par with the lesson in a week when stocks were shaken by news of the Federal Reserve raising interest rates by three-quarters of a point.
The Communication Services Sector (XLC) SPDR Fund slipped 5.1% in the last five sessions – worse than last week 4.9% decreasebut again largely with the selloff, as S&P 500 stocks fell 6.1% as a group.
And again, only a few large-cap issues in the sector even managed to pull off a gain for the week – and two of those were linked to Liberty Media’s Formula One Group, which dodged the fate of other big stocks. communications thanks to a midweek upgrade at overweight Morgan Stanley. Company analyst Benjamin Swinburne cited a 24% price rise and Series A (FWONA) stock ended the week 0.2% higherwhile the series C (NASDAQ:FWONK) managed a 0.7% gain.
The only other precursor among large-cap communications companies was the French telecommunications company Orange (NYSE: ORAN), up 0.5% for the week.
Declines were not uncommon, however, led by Paramount Global (NASDAQ: PARA) – who slipped 12.6% for the week despite some positive catalysts: its Viacom18 joint venture secured the Indian Premier League cricket streaming rights that were previously held by Disney, and its Top Gun: Maverick surged to become the year’s highest-grossing domestic film.
It was nearly surpassed among decliners by NetEase (NASDAQ:NTES), who fell 11.8% for the period largely due to Thursday’s liquidation of Chinese tech names.
Match Group (MTCH) has been caught in a crash in dating stocks, 10.6% drop for the week and culminating in hitting a record stock price on Friday.
The only three winners in the past five sessions among large-cap and larger communications services stocks (market cap $10 billion or more):
- Formula 1 Group Series C (FWONK), +0.7%;
- Orange (ORAN), +0.5%;
- Formula 1 Series A Group (FWONA), +0.2%.
The top five declines over the past five sessions among large-cap and larger communications services stocks (market cap $10 billion or more):
- Paramount Global (PARA), -12.6%;
- NetEase (NTES), -11.8%;
- Match Group (MTCH), -10.6%;
- ECB (ECB), -9.4%;
- Warner Music Group (WMG), -8.5%.