By April Joyner
NEW YORK (Reuters) – The mash-up of old and new media may not be a winning combination for the new S&P communication services sector index (SPLRCL) as its highest fliers face regulatory threats and challenges to user growth.
Three of the five momentum stocks collectively known as FAANGs – Facebook Inc(O:FB), Netflix Inc (O:NFLX) and Google parent company Alphabet Inc (O:GOOGL) – make up roughly half of the new sector by market capitalization.
Facebook and Alphabet moved to communication services from the technology sector (SPLRCT). Netflix was previously in the consumer discretionary sector (SPLRCD). The other FAANG stocks, Amazon.com Inc (O:AMZN) and Apple Inc (O:AAPL), remain in the consumer discretionary and technology sectors, respectively.