SAN FRANCISCO (Reuters) – Quarterly reports next week from Walt Disney Co (DIS.N), CBS and Viacom will likely highlight increasing competition in video streaming and could spark volatility in the so-called communication services sector, which has outperformed since it was overhauled last year.
The S&P 500 communication services index .SPLRCL has increased 20% so far in 2019, beating the S&P 500’s 17% gain and all but two of 11 sectors – technology and real estate. That strong performance is in large part thanks to a recovery by Facebook Inc (FB.O), as investors bet that the world’s largest social network will keep growing, even as it faces regulatory hurdles.
June-quarter results from Disney, CBS Corp (CBS.N) and Viacom Inc (VIAB.O) will keep investors fixated on a rising wave of competition in video streaming against market leader Netflix Inc (NFLX.O). All those companies fall within the communication services sector.
Netflix’s stock has sunk 14% since it reported on July 17…
Source news reuters.com, click here to read the full news.