Communication Services Sector Update: Alphabet Leads, Paramount Skydance Lags.

Alphabet leads as top communication services gainers, while Paramount Skydance lags. The sector, represented by the Communication Services Select Sector SPDR ETF (XLC), lost 0.1% in the week. The broader market, represented by the S&P 500, saw overall weekly losses.

The Communication Services Select Sector SPDR ETF (XLC) lost 0.1% in the week ending July 2, 2025, reflecting a broader market downturn. Despite the sector's overall decline, Alphabet Inc. (NASDAQ:GOOGL) emerged as a top gainer, while Paramount Skydance Group (NASDAQ:PSTK) lagged behind. Alphabet reported strong financial performance in Q2 2025, with 14% year-over-year revenue growth and a 10.4% increase in advertising revenue. In contrast, Paramount Skydance Group faced challenges related to debt levels and legal battles, leading to a decline in its stock price [2].

Alphabet's resilience is highlighted by its strong growth in Google Search, YouTube, and Google Cloud, which grew 32% to $13.6 billion. The company's performance underscores the potential for growth within the communication services sector. However, Paramount Skydance's struggles illustrate the risks and challenges that companies in this sector may face [2].

The broader market, represented by the S&P 500, saw overall weekly losses, indicating a general downturn in investor sentiment. Despite this, Alphabet Inc.'s strong performance provided some support to the communication services sector. The sector remains a mixed bag, with some companies reporting strong growth while others face challenges [1].

References:
[1] https://www.ainvest.com/news/communication-services-sector-update-alphabet-leads-paramount-skydance-lags-2509/
[2] https://beincrypto.com/sonic-labs-moves-into-u-s-market-with-etfs-pipes-and-deflationary-model/