The upswing in the sector that hosts communication and media companies arrived after it sank 40.4% in 2022. It was the worst performer of the S&P 500’s 11 groups last year.
Investors have been bargain-hunting after the sector was hammered down by a mix of macroeconomic headwinds and company-specific issues. The prospect of high inflation hurting consumer spending contributed to stock losses last year for Netflix and Match. The parent of Tinder and other dating sites tumbled 69% in 2022 but it has picked up 23% in 2023.
‘Big Short’ investor Michael Burry warned stocks would crash and rallies wouldn’t last. Here are 6 of his key tweets in 2022, and what they meant.
The pandemic crash was just the start
There may be epic but short-lived rallies
Don’t be fooled by stocks rebounding
Stocks are on a dangerous trajectory
Burry predicts correctly, but early
Stocks are set to tumble a lot further
And Facebook parent Meta has jumped 18% after losing more than 60% last year. Meta and Match were among the top 10 biggest losers on the S&P 500 in 2022.
The rotation in market leadership is also on display in the consumer discretionary, information technology, and real estate sectors, among others. Gains in 2023 for those groups range between 9% and nearly 7%.
By contrast, the S&P 500 consumer dictionary sector fell 37.6% last year, the second-worst performance on the broad index.
“While much of the communication services sector has experienced gains in 2023, the three-week rally has done little to remedy substantial market capitalization losses since the end of 2021,” S&P Global Market Intelligence said Tuesday. The group’s five largest companies have lost about $1.4 trillion in market cap since the end of 2021, it said.