S&P 500 reclassifies Facebook, Twitter and Google from Tech to Communication Services - thoughts?

Bateman Begins's picture
Rank: King Kong | 1,049

In a major reshuffle in S&P 500, Facebook, Twitter and Google will leave the tech sector to be reclassified under a new "communication services" sector. This puts them in the same sector as the trio of regulated telecoms AT&T, Verizon and CenturyLink. Disney, Netflix, and Comcast are also joining this newly created sector, among some more names.

I'm curious to know people's thoughts on this reshuffle - is it warranted? I can't seem to find a truly satisfying reason anywhere, except that the telecom sector housed only 3 companies earlier and murmurs of this being a precursor to future regulation of Facebook and Co. Neither of these reasons seem concrete enough.

Also curious if all the ETF rebalancing that is now occurring because of this - does it create any short term trading opportunities? Got no intention to trade on it but merely curious.

For those of you who work in equities/mutual funds/ETF's etc, any on the ground impact or other less obvious, less discussed implications of this reshuffle?

Comments (2)

Sep 20, 2018

Hey Bateman Begins, I'm here to break the silence...any of these links help you?:

  • MBB vs. Twitter (tons of high-level defectors from MBB, GS, Google, Facebook, as well as recent grads who have turned ... Hey WSO, I have full-time offers from MBB and a hot tech company--think of it as the equivalent of ... that it's the Next Big Thing. There are already ~500 employees, but the company'll grow to be ...
  • Goldman Values Facebook at $50 billion, Digital Sky Technologies Makes 400% on its Investment Since 2009! Technologies are investing $500 million into Facebook at a valuation of $50 billion. According to Second ... Facebook valuation astronomical, and it theoretically doubles the net worth of founder Mark Zuckerberg to ... approximately $14 billion. Two years ago Microsoft attempted to purchase a stake in Facebook at $15 billion, ...
  • Is "tech consulting" a dead end? a tech company? Facebook, Twitter, Google etc. (I highly suspect it won't). tech ... practice of a big 4,passed me along to someone in the "tech sector." The guy who I was put in ... touch with said he essentially assists in implementing proprietary software. From what he described, it ...
  • Facebook I remember in August of 2004 when people just wanted to be contrary on Google and said it was ... I'm really curious about everyone's OBJECTIVE opinion on facebook. Yes, we all know the ... "buy" then they are just going along with the crowd. If they are negative on facebook they're ...
  • The Twitter Bidding War Starts Now sold. The company is expected to receive bids from many technology and media companies such as Google ... appealing to media companies as well as tech companies. Twitter is a company that could be much better run ... and Salesforce. : "Twitter's board of directors is said to be largely desirous of ...
  • An Overview of Technology Media and Telecom (TMT)- Part 1 of 2 you're much more likely to buy it on their recommendation. Enter... Facebook, twitter, etc. This space is ... particularly for those that enjoy seeing valuations that can range from "WTF was that" (internet) to ... tech? 1) Total Addressable Market (TAM): For each company you need to understand how big the opportunity ...
  • Follow Wall Street Oasis (Patrick's personal page) weibo renren wallstreetoasis Facebook Twitter google plus ... stories of the day) Twitter (10+ daily tweets from homepage posts, hidden gems from the forum, & some ... Get your daily Wall Street Oasis fix via our social pages: Facebook.com/wallstreetoasis (top ...
  • More suggestions...

No promises, but thought I'd mention a few relevant users that work in the industry: @StompinGrass @Tom-B @jrr2ok

If those topics were completely useless, don't blame me, blame my programmers...

Sep 22, 2018
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