Communications Services Up On Advertising Optimism -- Communications Services Roundup

Communications services companies rallied amid positive signs for the advertising industry.

Interpublic Group and WPP PLC both reported a return to organic revenue growth in the first quarter of 2021, adding to signs the advertising industry is turning a corner after a year of uncertainty stemming from the coronavirus pandemic.

One brokerage said Alphabet's surprisingly strong earnings report boded well for the advertising industry.

"On the ads side, he believes this is a positive read for Facebook and Amazon advertising, and bigger picture, it is also a positive read across to other e-commerce players including, other marketplaces, and traditional retailers' online businesses," said analysts at brokerage Morgan Stanley, in a note to clients.

Facebook shares rose ahead of its earnings report. Continued at-home listening of music and podcasts, and the popularity of Joe Rogan, helped Spotify Technology post another quarter of strong subscription gains, though overall user growth softened as some of the company's newest markets face a fierce resurgence of Covid-19.

Huawei Technologies reported a steepening decline in revenue in the first quarter, as its smartphone sales tumbled and the Chinese tech giant continued to struggle under U.S. sanctions.

Write to Rob Curran at [e-mail]

(END) Dow Jones Newswires

04-28-21 1743ET