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U.S. Telecom Sector Analysis

UpdatedSep 07, 2025
DataAggregated Company Financials
Companies481
  • 7D4.8%
  • 3M15.2%
  • 1Y47.8%
  • YTD22.5%

In the last week, the Telecom industry is up 4.8%, with Alphabet up 10%. In the same time, AST SpaceMobile was down 13%. This takes the industry's 12 month performance to a gain of 48%. As for the next few years, earnings are expected to grow by 11% per annum.

Sector Valuation and Performance

Has the U.S. Telecom Sector valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 07 Sep 2025US$7.3tUS$1.6tUS$286.2b21x25.5x4.5x
Tue, 05 Aug 2025US$6.7tUS$1.6tUS$270.0b19.1x24.8x4.1x
Thu, 03 Jul 2025US$6.6tUS$1.6tUS$250.2b18.1x26.5x4.1x
Sat, 31 May 2025US$6.2tUS$1.6tUS$249.8b17.8x24.8x3.9x
Mon, 28 Apr 2025US$5.7tUS$1.6tUS$240.0b17.1x23.6x3.6x
Wed, 26 Mar 2025US$6.0tUS$1.6tUS$227.9b18.3x26.2x3.8x
Fri, 21 Feb 2025US$6.5tUS$1.6tUS$224.3b19.7x29.1x4.1x
Sun, 19 Jan 2025US$6.2tUS$1.6tUS$189.6b19x32.6x3.9x
Tue, 17 Dec 2024US$6.2tUS$1.6tUS$189.8b18.6x32.9x4x
Thu, 14 Nov 2024US$6.0tUS$1.6tUS$189.3b18.6x31.5x3.8x
Sat, 12 Oct 2024US$5.6tUS$1.5tUS$188.2b18.6x29.7x3.6x
Mon, 09 Sep 2024US$5.1tUS$1.5tUS$191.2b18.8x26.6x3.3x
Wed, 07 Aug 2024US$5.1tUS$1.5tUS$201.9b18.1x25.3x3.3x
Fri, 05 Jul 2024US$5.6tUS$1.5tUS$191.3b18.1x29.1x3.7x
Sun, 02 Jun 2024US$5.3tUS$1.5tUS$191.0b16.4x27.6x3.5x
Tue, 30 Apr 2024US$5.1tUS$1.5tUS$192.7b18.1x26.5x3.4x
Thu, 28 Mar 2024US$5.1tUS$1.5tUS$175.8b19.6x28.8x3.4x
Sat, 24 Feb 2024US$4.9tUS$1.5tUS$174.1b18.1x28.1x3.3x
Mon, 22 Jan 2024US$4.8tUS$1.5tUS$128.1b15.1x37.2x3.1x
Wed, 20 Dec 2023US$4.6tUS$1.5tUS$127.9b17x36x3x
Fri, 17 Nov 2023US$4.5tUS$1.5tUS$127.0b14.3x35.2x2.9x
Sun, 15 Oct 2023US$4.3tUS$1.5tUS$104.7b14.9x41.3x2.9x
Tue, 12 Sep 2023US$4.4tUS$1.5tUS$104.4b14.4x41.8x2.9x
Thu, 10 Aug 2023US$4.3tUS$1.5tUS$103.4b15.6x41.4x2.9x
Sat, 08 Jul 2023US$4.1tUS$1.5tUS$106.8b17.2x38.6x2.8x
Mon, 05 Jun 2023US$4.1tUS$1.5tUS$107.4b14.8x37.8x2.7x
Wed, 03 May 2023US$3.8tUS$1.5tUS$113.5b16.5x33.1x2.5x
Fri, 31 Mar 2023US$3.7tUS$1.5tUS$115.4b16.6x32.1x2.5x
Sun, 26 Feb 2023US$3.4tUS$1.5tUS$117.4b18.7x29.2x2.3x
Tue, 24 Jan 2023US$3.6tUS$1.5tUS$165.9b18.4x21.6x2.4x
Thu, 22 Dec 2022US$3.2tUS$1.5tUS$166.5b16.5x19.1x2.1x
Sat, 19 Nov 2022US$3.3tUS$1.5tUS$163.4b17.4x20.2x2.2x
Mon, 17 Oct 2022US$3.2tUS$1.5tUS$187.6b14.5x17.1x2.2x
Wed, 14 Sep 2022US$3.8tUS$1.5tUS$187.5b16.2x20.1x2.5x
Price to Earnings Ratio

20.1x


Total Market Cap: US$3.8tTotal Earnings: US$187.5bTotal Revenue: US$1.5tTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Telecom Sector Price to Earnings3Y Average 29.6x202320242025
Current Industry PE
  • Investors are pessimistic on the American Communication Services industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 25.5x which is lower than its 3-year average PE of 29.6x.
  • The 3-year average PS ratio of 3.2x is lower than the industry's current PS ratio of 4.5x.
Past Earnings Growth
  • The earnings for companies in the Communication Services industry have grown 15% per year over the last three years.
  • Revenues for these companies have grown 2.9% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Telecom sector?

US Market0.43%
Telecom4.75%
Interactive Media and Services6.70%
Entertainment1.79%
Telecom Services and Carriers0.15%
Media0.094%
Wireless Telecom-0.051%
Industry PE
  • Investors are most optimistic about the Entertainment industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 17.2%, which is higher than its past year's earnings decline of 2.2% per year.
  • Investors are most pessimistic about the Media industry, which is trading below its 3-year average of 19.4x.
Forecasted Growth
  • Analysts are most optimistic on the Entertainment industry, expecting annual earnings growth of 17% over the next 5 years.
  • This is better than its past earnings decline of 2.2% per year.
  • In contrast, the Media industry is expected to see its earnings grow by 4.7% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
GOOGL AlphabetUS$235.0010.4%
+US$267.2b		55.7%PE24.6x
META Meta PlatformsUS$752.451.9%
+US$34.5b		50.4%PE26.4x
NFLX NetflixUS$1.24k2.9%
+US$15.1b		86.8%PE51.6x
SPOT Spotify TechnologyUS$707.193.7%
+US$5.2b		119.1%PE154.1x
RDDT RedditUS$240.006.6%
+US$2.8b		322.2%PE207.6x

Latest News

META
US$752.45
Meta Platforms
7D
1.9%
1Y
50.4%

Meta Platforms, Inc. (NASDAQ:META) Shares Could Be 30% Below Their Intrinsic Value Estimate

Sep 06
Meta Platforms, Inc. (NASDAQ:META) Shares Could Be 30% Below Their Intrinsic Value Estimate
RBLX
US$127.69
Roblox
7D
2.5%
1Y
192.6%
ASTS
US$42.41
AST SpaceMobile
7D
-13.3%
1Y
62.4%
GOOGL
US$235.00
Alphabet
7D
10.4%
1Y
55.7%

AI Adoption And Cloud Demand Will Boost Market Opportunity

Analysts view the DOJ antitrust ruling as materially less punitive than expected, reducing regulatory risks and supporting Alphabet’s competitive positioning in search, AI, and cloud, leading to a constructive outlook and maintaining the consensus price target at $226.71. Analyst Commentary Bullish analysts are raising price targets as the recent DOJ antitrust remedy in the Google search case removes major regulatory overhangs, with remedies considered materially less punitive than feared and allowing Google to maintain key distribution and Traffic Acquisition Cost payments.
LYV
US$163.42
Live Nation Entertainment
7D
-1.8%
1Y
76.1%

Advanced Ticketing And International Expansion Will Power Live Events

Analysts remain positive on Live Nation Entertainment due to strong concert demand, outperformance in the Concert segment, and Ticketmaster’s ongoing value, though they caution about near-term margin pressures, antitrust risks, and consumer headwinds; consensus price target is unchanged at $170.00. Analyst Commentary Bullish analysts cite continued strong demand for concerts and robust performance in the Concert segment, underpinned by higher Stadium and Venue-Nation contributions.
NFLX
US$1,243.82
Netflix
7D
2.9%
1Y
86.8%

Global Ad Tech Rollout Will Spark Future Prosperity

Analysts remain divided on Netflix as strong growth, operating leverage, and new business initiatives support higher targets for some, while valuation concerns and softer engagement metrics drive caution for others, ultimately resulting in an unchanged consensus price target of $1,350. Analyst Commentary Bullish analysts are raising price targets on Netflix driven by strong Q2/Q3 results, better-than-expected member growth, robust upcoming content slate (including hits like Squid Games 3), and tailwinds from new advertising and pricing initiatives.
RDDT
US$240.00
Reddit
7D
6.6%
1Y
322.2%
T
US$29.59
AT&T
7D
1.0%
1Y
41.1%
BILI
US$22.41
Bilibili
7D
-3.7%
1Y
48.2%

AI And Mobile Gaming Expansion Will Open New Revenue Opportunities

Bilibili’s consensus price target increased modestly as analysts cited robust user engagement, strong advertising revenue growth, and better-than-expected profitability driven by lower expenses, though valuation is now seen as fair after recent gains, raising the target from $26.57 to $27.54. Analyst Commentary Near-term game revenue is expected to decline due to a high prior-year base and limited catalysts from major new game launches in H2 2025.
EA
US$168.62
Electronic Arts
7D
-1.9%
1Y
17.1%

Live Services And New Game Releases Will Drive Engagement

Upward revisions to Electronic Arts’ price target reflect much stronger-than-expected player engagement around Battlefield 6’s open beta, supportive legal developments improving digital distribution profitability, and dismissal of short-term negative feedback, resulting in a modest increase in consensus analyst fair value from $172.30 to $174.11. Analyst Commentary Bullish analysts sharply raised Battlefield 6 open beta player base estimates, expecting nearly 20 million participants versus prior forecasts of just over 5 million, indicating a much stronger franchise draw.
CHTR
US$261.50
Charter Communications
7D
-1.5%
1Y
-20.1%

Spectrum Mobile And AI Will Improve Service Efficiency

Charter Communications’ consensus price target edged down to $395.75 as analysts weighed ongoing network upgrades and potential cash tax relief against continued competitive pressures and decelerating ARPU growth. Analyst Commentary Bullish analysts note Charter’s ongoing network upgrades and the momentum of its Spectrum Life Unlimited offering as drivers for improvement in broadband net subscriber losses.
BIDU
US$101.96
Baidu
7D
7.0%
1Y
25.9%
DIS
US$117.91
Walt Disney
7D
-0.4%
1Y
34.1%
WMG
US$32.69
Warner Music Group
7D
-2.0%
1Y
18.4%

Global Internet Expansion And Digital Monetization Will Unlock Future Upside

Warner Music Group's consensus price target has increased, driven by a substantial rise in net profit margin alongside a marked reduction in its future P/E ratio, raising fair value from $33.06 to $35.65. What's in the News Warner Music Group declared a regular quarterly cash dividend of $0.19 per share on Class A and Class B common stock.
TTD
US$52.07
Trade Desk
7D
-4.7%
1Y
-48.1%

CTV Partnerships With Disney And Netflix Will Transform Media

Trade Desk’s lower Analyst Price Target reflects a notably reduced future P/E multiple despite an improved net profit margin, leading to a revised fair value estimate of $85.64. What's in the News The Trade Desk expects at least $717 million in Q3 2025 revenue and has appointed Alex Kayyal as CFO, with a planned leadership transition from Laura Schenkein.
SPOT
US$707.19
Spotify Technology
7D
3.7%
1Y
119.1%