Communications Services stocks had a rebound week along with the market, gaining sharply after a rough start to 2022.
Stocks in the sector rose 5.8% for the week, matching the performance of the SPDR S&P 500 Trust ETF. Overall stocks had their best week in 16 months, and 10 of the 11 S&P 500 sectors rose for the week, with the exception of Energy.
Videogame stocks were prominent on both ends of the spectrum, with gainers led by some long-suffering names. Sea Limited (NYSE: SE) gained 15.4% for the week, making a substantial jump Wednesday after its CEO wrote stockholders about keeping the faith following a stock decline extending to 73% over six months.
Roblox (NYSE: RBLX) was the week’s second-biggest large-cap gainer, up 11.8%, and its relief rally mirrored Sea’s over the last four days of the week. Like Sea, it’s had a rough six months. Roblox stock closed Monday down 73% since Nov. 19.
Videogame stocks also represent the sector’s top decliners for the week, led by Take-Two Interactive Software (NASDAQ: TTWO), down 5.6% over that span. Its upcoming merger partner Zynga (ZNGA) was the No. 3 decliner, down 2.2%and Activision Blizzard (NASDAQ: ATVI) was No. 2, down 2.4%.
On a week where the market rallied, there may be some reversion to the mean going on there as well: In contrast to Sea and Roblox, Take-Two, Activision Blizzard and Zynga are all higher than they were six months ago.
The top five gainers over the past week among large-cap Communications Services stocks and larger ($ 10B market cap or more):
- Sea Limited (SE), + 15.4%;
- Roblox (RBLX), + 11.8%;
- Paramount Global (PARA), + 11%;
- Omnicom (OMC), + 10.1%;
- Twitter (TWTR), + 9.3%.
The top five decliners over the past week among large-cap Communications Services stocks and larger ($ 10B market cap or more):
- Take-Two Interactive Software (TTWO), -5.6%;
- Activision Blizzard (ATVI), -2.4%;
- Zynga (ZNGA), -2.2%;
- Verizon (VZ), -1.6%;
- Telus (TU), -0.8%.