Investing.com - An overhauled telecommunications sector featuring entertainment giants such as Disney and Comcast (NASDAQ:CMCSA) along with most of the FANG stocks could emerge as Wall Street's hottest bet when changes take effect in September.
The Telecommunication Services Sector will be broadened and renamed as Communication Services.
The newly created communications sector will include three of the four FANG stocks – Facebook (NASDAQ:FB), Netflix (NASDAQ:NFLX) and Google-parent company Alphabet (NASDAQ:GOOGL) – along with other companies that have propelled the stock market to record highs in recent years.
The changes, which have yet to be finalized, are aimed at reflecting the evolution of the media, telecommunications and Internet industries.
Analysts say a recent U.S. court ruling green-lighting the merger between AT&T (NYSE:T) and Time Warner could open the door to more merger-and-acquisition activity ahead.
Media, television and internet companies, all of which will become part of the revamped communications sector, see buying content producers as a way to add revenue.
Dynamic merger-and-acquisition activity, the addition of most of the FANGs and several other high-growth former tech stocks look set to make the new communications sector an attractive proposition.