We use the S&P sectors to sort the companies into 11 different sectors. These sectors are known as the Global Industry Classification Standard (GICS). The GICS was created in 1999 by Standard & Poor’s (S&P) and Morgan Stanley Capital International (MSCI). It is used by the majority of the professional investment management community. More than 95% of the world’s listed market capitalization has been classified by GICS.
The GICS sorts companies into sectors based on their primary business activity. Multiple factors are considered, such as a company’s main source of revenue, earnings analysis and market perception. The GICS uses a refined system to sort companies into 11 sectors. These are further divided into 24 industry groups, then into 68 industries, and finally into 157 sub-industries. For the purpose of the database, we only use the 11 fundamental sectors.
Sector - Communication Services
Communication services keep people connected and informed. It includes all companies that provide telecommunication services, such as data transmission services, internet providers and providers of cellular and wireless communication. All forms of media and entertainment also fall under this category, such as advertising, marketing, television, radio, cable networks and publishers of newspapers, magazines and books. The production and distribution of movies, series, sports, music and games also fall under this category.
Examples of companies in this sector are big names like AT&T, Facebook, Netflix and Walt Disney Co.