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It’s the first week of a new quarter, and it was a good one for Communications stocks, as the sector rebounded along with the broader market for a rare up week.
About two-thirds of the Communication Services’ sector’s big stocks pulled off gains for the week, while others saw more modest declines.
The S&P 500 broke a three-week losing streak, gaining 1.5% thanks to an early-week rally, and seven of its 11 sectors finished in positive ground. That included Communication Services, up 1.5% as a sector, and with its big-stock-weighted Communication Services Select Sector SPDR Fund (XLC) up 1.8% for the week.
And no large Communications stock had a better (or arguably, busier) week than Twitter (NYSE:TWTR), which led with a 12.2% gain for the period. That was made up of its only positive trading day among the five, but Tuesday was a big one: The stock jumped 21.7% that day after a seeming about-face from the company’s purported buyer, billionaire Elon Musk, who sent a letter to the company saying he’d like to complete his $44B buyout after all.
That set off a flurry of activity around the lawsuit Twitter (TWTR) filed forcing Musk to go through with the deal he said he was terminating. Amid some high-priced lawyering, the Delaware judge presiding over the case put an Oct. 17 trial on hold, giving Musk until the evening of Oct. 28 to complete his purchase, or face new trial dates in November.
For being the top gainer, Twitter’s week-ending price of $49.18 still marks a 9.3% discount to Musk’s committed deal price of $54.20 per share.
Two of the other week’s best saw relief rallies looking to take the edge off a terrible year. Twilio (NYSE:TWLO) was the second-best large-cap gainer, up 11.1% for the week, after wrapping the third quarter down nearly 74% year-to-date. Snap rose 8.6% for the week, which may offer some cold comfort after the stock was down 79.1% through three-quarters of the year – worst among big Communications names.
Pinterest (PINS), meanwhile, rose 7.8% for the week, meaning its 2022 fall is trimmed to -31%.
Unsurprisingly, a week of broader gains for the sector made minor losers out of more defensive telecom names. Netflix (NASDAQ:NFLX) was the biggest large-cap decliner, though it fell just 4.5% for the week.
But joining it on the list were China’s Chunghwa Telecom (NYSE:CHT), -3.7%; Verizon (VZ), -3%; and AT&T (T), -2.6%.
Roblox (RBLX), meanwhile, gained on three of the week’s five sessions, but slid by more than 11% on Friday to cap off a period where it fell by 2.9% week-over-week.
The five best performers over the past five sessions among large-cap Communication Services stocks and larger ($10B market cap or more):
- Twitter (TWTR), +12.2%;
- Twilio (TWLO), +11.1%;
- Take-Two Interactive Software (TTWO), +10.8%;
- Snap (SNAP), +8.6%;
- Pinterest (PINS), +7.8%.
The five worst performers over the past five sessions among large-cap Communication Services stocks and larger ($10B market cap or more):
Image and article originally from seekingalpha.com. Read the original article here.