Videogame names crowd week’s top Communications gainers, losers (NYSE:SE)
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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):
