Communications Services stocks declined for yet another week, with the market feeling more pressure from inflation and conflict in Ukraine, and growth-oriented techs continuing to cede some ground.
The Communication Services Select Sector SPDR Fund (NYSEARCA: XLC) fell 3.2% for the week, while the S&P 500 Trust (NYSEARCA: SPY) dipped 2.8% over that time span.
No stock in the sector fared worse for the week than Baidu (NASDAQ: BIDU), dropping more than 19% in a fall that accelerated in the back half of the week as the SEC suggested it was among Chinese names that could be delisted in the United States for falling short of US accounting rules.
Roku (NASDAQ: ROKU) dropped 14.5% for the week despite a small relief rally on Wednesday (when the market roared back). It’s now given up more than 55% of its value in 2022 alone, and is down 68% over the past six months.
An up and down week for Twilio (NYSE: TWLO) ended with that stock 11% lower, exacerbated by a Friday downdraft in software-as-a-service stocks. And a newsy week for Discovery (NASDAQ: DISCA) – the company continued pursuing debt for its combination with WarnerMedia and shareholders approved the deal – still ended with that stock off by double digits compared to the week prior.
Gainers marked yet another week where defensive telecoms were the best play. Mexico’s América Móvil gained 2.5% for the period, and ADRs of Telkom Indonesia (NYSE: TLK) more than doubled that up with a 5.7% gain.
A pair of Liberty companies also made appearances: Liberty Broadband (NASDAQ: LBRDA) rose 2.7%, and Liberty Braves (NASDAQ: BATRA) – owner of Major League Baseball’s Atlanta Braves – led large-cap gainers rising 5.8% on a week where some labor peace meant there would be a baseball season after all.
The top five gainers over the past week among large-cap Communications Services stocks and larger ($ 10B market cap or more):
- Liberty Braves Group Series A (BATRA), + 5.8%;
- Telkom Indonesia (TLK), + 5.7%
- WPP (NYSE: WPP), + 5%;
- Liberty Broadband Series A (LBRDA), + 2.7%;
- America Mobile (NYSE: AMX), + 2.5%.
The top five decliners over the past week among large-cap Communications Services stocks and larger ($ 10B market cap or more):
- Baidu (BIDU), -19.2%;
- Roku (ROKU), -14.5%;
- Twilio (TWLO), -11%;
- Discovery (DISCA), -10.8%;
- Snap (NYSE: SNAP), -9.2%.