Communications services companies surged after strong earnings from one major streaming service.

Netflix shares rallied after the streaming giant posted an increase of 7.6 million in subscribers in the fourth quarter, handily beating expectations, in what some analysts said reflected a strong content lineup.

Fears that the streaming pioneer had passed its peak weighed on shares of Netflix and the broader sector for months, erasing optimism within the media industry and investors about the growth horizons for online viewing.

Shares of Rovio Entertainment, the Finnish videogame maker that created "Angry Birds," rallied after rival Playtika offered to buy it for about $813 million.

Swedish telecom equipment giant Ericsson warned waning demand for 5G equipment weighed down quarterly profit.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

01-20-23 1702ET