Alphabet And Meta Sink Communication Services 10.8%: Oversold?

Communication Services has had a rough October. Since the close on 10/13, the sector has fallen 10.8% over nine trading days, its worst performance over that span since April 2025’s Liberation Day fallout. The weakness has been broad, stretching from the mobile carriers to Alphabet (GOOGL), Netflix (NFLX), and Meta Platforms (META). One stock holding up better recently is Disney (DIS), which spent much of the past year struggling itself.

As of yesterday’s close, Communication Services had declined for five straight sessions and was trading 2.7 standard deviations below its 50-day moving average. Its relative strength line versus the S&P 500 had also fallen to a 52-week low, and a YTD decline of 5.04% put it last among the eleven sectors. After repeatedly testing overbought territory in September and early October, the sector is now deeply oversold.

The latest decline has left Communication Services 15.5% below its all-time high. That’s approaching the 16.4% drawdown reached in March. The spring recovery brought the sector back to record levels, but subsequent rallies have fallen short, and the latest slide has erased much of the recovery from the summer lows.

The telecom charts show how widespread the weakness has become. AT&T (T) and T-Mobile (TMUS) are both near their lowest levels of the past year, and Verizon’s (VZ) reversal has taken it back below both moving averages shown. Comcast (CMCSA) has bounced modestly from its recent low, but its broader downtrend remains intact. All four stocks are below their 50-day moving averages.

The sector’s larger media and internet stocks aren’t providing much support either. Netflix (NFLX) continues to make new 52-week lows. Meta’s (META) late-summer rally has reversed, taking the stock back below both moving averages. Alphabet (GOOGL) had been holding in a relatively narrow range for the past couple of months, but it has now broken lower as well.

Disney (DIS) stands out against those charts. After falling in March and revisiting that range around July, DIS has recovered above $110 and is trading above both moving averages. It’s still below its highs from late last year, but a stock that spent months struggling is now one of the few bright spots in a sector having trouble finding its footing.