The following is an excerpt from Noel Randewich | June 23, 2018 | ibtimes.com |
SAN FRANCISCO - An overhauled telecommunications sector featuring most of the so-called FANG stocks could debut as Wall Street’s hottest bet when it kicks off in September, boosted by a rising wave of media and television acquisitions.
Long viewed as stodgy stocks for dividend-oriented investors, the telecom services sector will be renamed communications services and supercharged with the addition of Facebook ( FB.O ), Netflix ( NFLX.O ) and Google-owner Alphabet ( GOOGL.O ) - three of the four FANGs, along with Amazon - as well as other companies that have driven the stock market to record highs in recent years.
The changes are part of the largest-ever shakeup of the stock market’s broad business categories.
In total, 14 S&P 500 companies, including Netflix, will shift from the consumer discretionary sector into communications, joining AT&T, Verizon Communications ( VZ.N ) and CenturyLink ( CTL.N ) in the biggest shakeup of the Global Industry Classification Standard, or GICS, since it was created in 1999. Five S&P 500 companies will switch from technology to communications.
The new sector will also include Walt Disney ( DIS.N ), Comcast ( CMCSA.O ) and other entertainment and media companies scrambling to consolidate and fend off competition from newcomers Netflix and Alphabet, which produce content and sell it directly to consumers.
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