Hit The Pause Button And Preview Comms Earnings

Key Takeaways:

  • Though earnings expectations are diminished across the board, Comms could be one of the bright spots
  • Facebook, Alphabet, and Twitter once again find themselves in the regulatory crosshairs
  • Disney
    DIS
    announced it would be laying off 28,000 employees 

When you think about the earnings season straight ahead, it’s important to remember that not all sectors necessarily look equal. Among sectors, the Communication Services arena is one that might stand out as investors await a fresh round of company reports.

Third quarter earnings for the overall market are again expected to be extraordinarily gloomy for many S&P 500 companies overall—though once again with lowered expectations heading into earnings season. Research firm FactSet expects an overall average earnings pullback of 21.8%. That’s certainly better than the near-32% drop in the second quarter, but hardly something to cheer about.

Then there’s the sector-specific market. And among sectors, Communication Services scores high marks from analysts, with 59% offering buy ratings on the sector, according to FactSet. That’s exactly where it stood in January and up a percentage point from May.

The bulk of those buy ratings are in the Communications sector components many Americans rely on normally but have gravitated toward with more focus and attention since the pandemic began. We’re talking about Netflix
NFLX
(NFLX), Facebook (FB), Alphabet (GOOGL), and Twitter (TWTR).

And there’s Disney (DIS). More on that in a bit.

Overall, FactSet expects Communication Services earnings per share to fall a little less than the overall market, about 20.5%. But it actually expects slight year-over-year revenue growth (not decline) of 0.2%. In a normal year, that would probably sound pretty weak, but this year, many companies would probably take it.

No More Fangs in FAANG Stocks?

Speaking of FB and GOOGL, communications sector stocks often

Gmail mistakenly removed the button that lets you triage loads of emails at once, but it’s coming back

If you’re not the inbox zero type — and I’m definitely not — you might sometimes rely on Gmail’s “Select all conversations that match this search” option to read, archive, or delete hundreds or thousands of messages at once.

Except we can’t do that anymore, and neither can a number of angry Gmail users we’ve spotted. The option has up and disappeared. Google accidentally removed it, the company confirms to The Verge.

Instead of the option, we’re seeing a nav bar with a handful of shortcut buttons when we search, like this:

Thankfully, Google tells The Verge it’s coming back “as soon as possible,” adding:

We are working to bring back the feature in Gmail that allows you to ‘select all conversations that match this search’ as soon as possible. This feature was removed unintentionally. We apologize to our users who may have been affected.

That’ll be good news to those who posted in this Gmail help thread from six days ago, which had gone unanswered until now, and it explains why Google’s own Gmail support team was unaware of a change; on at least a couple occasions, they’d been giving readers instructions that no