The communication services sector has been one of Wall Street’s most dynamic performers so far this year. The sector has a lot of breadth and encompasses everything from traditional telecom giants to digital advertising platforms and streaming entertainment providers, so the sector hardly moves in tandem.
What makes this sector particularly intriguing is how different subsegments are thriving for entirely different reasons. Tech-oriented communication stocks have capitalized on AI, whereas telecom stalwarts have found strength through 5G network expansion, which is finally becoming the dominant communication standard this year.
Understanding these market leaders provides both defensive positioning opportunities and exposure to some of the most innovative companies.
Even during bear markets, there are pockets of the market that perform exceptionally well. For example, I identified 15 Energy Stocks that are Up the Most in 2025 in another article.
Here are the top 15 energy winners so far this year.
A person at home displaying a vibrant media streaming interface, being rendered on a large flatscreen television.
Methodology
For this article, I screened the best-performing communication services stocks year-to-date.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
15. AT&T Inc (NYSE:T)
Number of Hedge Fund Holders In Q4 2024: 80
AT&T Inc (NYSE:T) is a leading U.S. telecommunications company specializing in wireless, fiber broadband, and connectivity services for consumers and businesses.
The primary reason AT&T’s stock is up significantly in 2025 is its strong first-quarter earnings, which beat analyst expectations for subscriber growth and demonstrated robust financial performance.
In April 2025, AT&T reported 324,000 postpaid phone net additions, which surpassed Wall Street estimates, and its adjusted earnings per share rose 6% year-over-year to $0.51, with revenues up 2% to $30.6 billion. This positive surprise, especially compared to Verizon’s subscriber losses, drove the stock up by more than 19% year-to-date before the earnings release, and it continued to climb after the report.
Another key catalyst was management’s confirmation that AT&T will commence share repurchases in the second quarter of 2025, following a reduction in net debt and achieving its leverage target. This move, along with a reaffirmed commitment to returning over $40 billion to shareholders through dividends and buybacks over the next three years, has fueled investor optimism.
The consensus price target of $28.5 implies 3.32% upside.
T stock is up 23.73% year-to-date.
14. Telefonica Brasil SA (NYSE:VIV)
Number of Hedge Fund Holders In Q4 2024: 13
Telefonica Brasil SA (NYSE:VIV) is the largest telecommunications company in Brazil, providing mobile, fixed, broadband, and digital services to consumers and businesses nationwide.
The most significant recent catalyst was the announcement and implementation of a major share restructuring in March and April 2025. This restructuring, which consolidated every 40 existing shares into one and then split that into 80 shares, was designed to boost share liquidity, improve price formation, and reduce operational costs.
The restructuring was completed on April 15, 2025, and was accompanied by a capital reduction process with a restitution payment scheduled for July 2025.
The consensus price target of $19.93 implies 108.84% upside.
VIV stock is up 30.51% year-to-date.
13. Spotify Technology SA (NYSE:SPOT)
Number of Hedge Fund Holders In Q4 2024: 101
Spotify Technology SA (NYSE:SPOT) is the world’s largest audio streaming subscription service, offering music, podcasts, and audiobooks to over 675 million users in 184 markets.
The most important reason for the surge in 2025 was the announcement of a renewed multi-year partnership with Universal Music Group in early February, which sparked a 9.3% single-day gain. This deal reassured investors about Spotify’s content pipeline and revenue-sharing model, while also supporting innovation and artist success.
Other key drivers include the launch of new subscription tiers and the expansion into educational content, which diversified revenue streams and tapped into new user segments.
The consensus price target of $593.95 implies 1.9% downside.
SPOT stock is up 35.44% year-to-date.
12. Millicom International Cellular SA (NASDAQ:TIGO)
Number of Hedge Fund Holders In Q4 2024: 17
Millicom International Cellular SA (NASDAQ:TIGO) is a telecommunications provider offering cable, mobile, broadband, and digital financial services primarily in Latin America under the Tigo brand.
The most significant driver for Millicom’s stock surge in 2025 was the completion of its delisting from Nasdaq Stockholm, which consolidated all trading of its shares on the U.S. Nasdaq. This move simplified the company’s capital structure and led SEB, the custodian bank, to initiate the sale of approximately 5.1 million unconverted Swedish Depositary Receipts, which the market viewed positively.
The stock’s momentum was further fueled by the announcement of an interim dividend of $0.75 per share, payable in April 2025, and by JPMorgan raising its price target from $33 to $41, citing Millicom’s strategic reduction in capital expenditures and improved financial metrics. The company’s robust free cash flow yield, strong EBITDA of $2.4 billion, and a healthy gross profit margin of 75.5% also contributed to investor confidence.
The consensus price target of $35.65 implies 7.64% upside.
TIGO stock is up 41.72% year-to-date.
11. TIM SA (NYSE:TIMB)
Number of Hedge Fund Holders In Q4 2024: 16
TIM SA (NYSE:TIMB) is a major telecommunications company in Brazil, providing mobile, fixed, broadband, and data services to individuals and businesses.
The primary catalyst for TIM SA’s stock appreciation in 2025 was the improved financial performance following the sale of its NetCo division last year, which resulted in a significant increase in operating margins and a return to consolidated profit in the second half of 2024. The boost is still ongoing.
The company reported group revenue of €14.5 billion, a 3.1% year-over-year increase, and EBITDA AL of €3.7 billion, up 10.1% year-over-year, despite a full-year net loss that was sharply reduced by 67% to €364 million. The market responded strongly to these results.
The consensus price target of $16 implies 1.76% downside.
TIMB stock is up 48.19% year-to-date.
10. FingerMotion Inc (NASDAQ:FNGR)
Number of Hedge Fund Holders In Q4 2024: 2
FingerMotion Inc (NASDAQ:FNGR) is a technology company specializing in mobile payment, recharge platforms, and value-added telecom services in China, including big data analytics and cloud services.
The stock’s sharp rise in 2025 was primarily driven by its Q3 fiscal 2025 results, which showed a 39% year-over-year revenue increase to $8.53 million, mainly from its Telecommunications Products and Services division.
The company also reported a narrower net loss and significant reductions in general and administrative expenses, which the market interpreted as operational improvement.
The management highlighted new growth opportunities in their Command and Communications segment and the acceleration of monetization within their Big Data business. The successful completion of a recent financing round equipped FingerMotion with resources to pursue these initiatives.
FNGR stock is up 52.08% year-to-date.
9. Sify Technologies Ltd (NASDAQ:SIFY)
Number of Hedge Fund Holders In Q4 2024: 1
Sify Technologies Ltd (NASDAQ:SIFY) is India’s largest integrated ICT service and solution provider, delivering cloud, data center, network, and digital services to enterprises across India and internationally.
The stock’s rise in 2025 has been primarily driven by strong revenue growth and aggressive infrastructure expansion. On April 21, 2025, Sify reported a 12% year-over-year revenue increase to INR39,886 million and a similar rise in EBITDA, despite posting a net loss of INR785 million due to heavy capital expenditures aimed at scaling up data center and network capacity.
The company launched two new data centers in Delhi and Chennai and expanded its fiber network by 10%, bringing its total to 1,137 nodes nationwide. Demand from international hyperscalers for Sify’s data center services remains robust, while Indian enterprise adoption is still emerging. Management’s guidance for the next two years forecasts average annual revenue growth of 26%.
SIFY stock is up 53.50% year-to-date.
8. DouYu International Holdings Ltd (NASDAQ:DOYU)
Number of Hedge Fund Holders In Q4 2024: 8
DouYu International Holdings Ltd (NASDAQ:DOYU) operates one of China’s largest live-streaming platforms focused on gaming, eSports, and interactive entertainment, connecting developers, teams, advertisers, and millions of viewers.
The biggest catalyst was the March 14, 2025, release of fourth quarter and full year 2024 results, which highlighted a sharp rise in revenue from DouYu’s “innovative business, advertising, and others” segment. It is now up 63.6% to RMB1.2 billion and 28% of total revenue.
DouYu also declared a second $300 million special cash dividend in January 2025 and executed a $20 million share repurchase, signaling confidence in its financial stability and commitment to shareholder returns.
The consensus price target of $12.75 implies 87.5% upside.
DOYU stock is up 58.70% year-to-date.
7. Groupon Inc (NASDAQ:GRPN)
Number of Hedge Fund Holders In Q4 2024: 17
Groupon Inc (NASDAQ:GRPN) is an American e-commerce marketplace that connects subscribers with local merchants by offering discounted activities, travel, goods, and services in North America and internationally.
The stock’s rally in 2025 has been fueled by a combination of positive financial results and a strategic shift toward local commerce.
Groupon’s Q4 revenue beat analyst expectations, and the company projected 2025 revenue between $493 million and $500 million, with adjusted EBITDA of $70 million to $75 million. Both were above consensus estimates.
Revenue declined 5% year-over-year in Q4, but the company’s operational improvements and renewed growth in its core North American business reassured investors.
The consensus price target of $17.75 implies 9.62% downside.
GRPN stock is up 61.65% year-to-date.
6. IHS Holding Ltd (NYSE:IHS)
Number of Hedge Fund Holders In Q4 2024: 17
IHS Holding Ltd (NYSE:IHS) is one of the world’s largest independent owners and operators of shared communications infrastructure, primarily focused on emerging markets across Africa and Latin America.
The stock’s sharp rise in 2025 is mainly due to a significant earnings beat in the fourth quarter of 2024, where IHS reported earnings per share of $0.73, far exceeding the forecast of $0.01, and revenue of $437.8 million, also above expectations.
IHS sold its 70% stake in its Kuwait business for $230 million, and the earlier sale of its Peru operations, both part of a broader strategic review aimed at raising $500 million to $1 billion through asset disposals. These moves improved the company’s balance sheet.
IHS stock is up 65.41% year-to-date.
5. trivago NV (NASDAQ:TRVG)
Number of Hedge Fund Holders In Q4 2024: 3
trivago NV (NASDAQ:TRVG) operates a global hotel and accommodation search platform, enabling users to compare prices from hundreds of booking sites and helping partners market their properties.
The stock’s rally in 2025 is primarily attributed to a marked turnaround in its business performance, as highlighted in its fourth quarter 2024 results and early 2025 trading.
In Q4 2024, trivago returned to revenue growth for the first time since early 2023, with total revenue up 3% to €94.8 million and referral revenue up 5%. Net income more than doubled to €5.1 million, and adjusted EBITDA rose 52% to €11.1 million, both exceeding expectations.
The most impactful news was the announcement in February 2025 that all three reporting segments saw strong double-digit year-over-year revenue growth in January.
The consensus price target of $2.94 implies 20.3% downside.
TRVG stock is up 69.27% year-to-date.
4. Jiayin Group Inc (NASDAQ:JFIN)
Number of Hedge Fund Holders In Q4 2024: 2
Jiayin Group Inc (NASDAQ:JFIN) is a leading Chinese fintech platform that connects consumers with financial institutions, leveraging advanced technology, big data, and artificial intelligence to drive digital transformation in the financial sector.
The stock’s outsized gains in 2025 are chiefly due to the company’s robust growth in loan facilitation volumes and aggressive expansion strategies. In the fourth quarter of 2024, Jiayin facilitated 27.7 billion RMB in loans, up 37.8% year-over-year, and set guidance for Q1 2025 at 35 billion RMB, a projected 55% annual increase.
Despite a 12.2% year-over-year decline in net revenue due to strategic shifts and increased R&D investment, the market reacted positively to the company’s strong operating income and future growth prospects.
JFIN stock is up 81.95% year-to-date.
3. CuriosityStream Inc (NASDAQ:CURI)
Number of Hedge Fund Holders In Q4 2024: 6
CuriosityStream Inc (NASDAQ:CURI) is a global streaming platform that specializes in factual entertainment, offering documentaries and series covering science, nature, history, technology, and more.
The biggest catalyst for CuriosityStream’s stock surge in 2025 has been the announcement of new third-party content licensing deals worth over $7 million.
These agreements are expected to significantly boost revenue and align with analysts’ forecasts of 13% growth for the year.
Another major driver has been the company’s strategy to expand content and data licensing, especially for AI model training, which management indicated could generate licensing revenue exceeding half of its direct subscription revenue for the year.
CuriosityStream also reported strong Q4 2024 earnings, beating revenue expectations with $14.1 million and achieving record adjusted free cash flow of $3.3 million, alongside a gross margin improvement to 52% and ending the year with $39.7 million in cash and no debt.
The consensus price target of $3 implies 14.3% downside.
CURI stock is up 132.45% year-to-date.
2. FuboTV Inc (NYSE:FUBO)
Number of Hedge Fund Holders In Q4 2024: 13
FuboTV Inc (NYSE:FUBO) is a sports-first live TV streaming service that aggregates premium sports, news, and entertainment content, operating in the US, Canada, France, and Spain.
The most significant event behind FuboTV’s sharp rise in 2025 was the announcement in early January of a proposed merger with Hulu, which is backed by Disney.
This deal was met with strong investor enthusiasm because it would expand FuboTV’s subscriber base from 1.7 million to potentially 6.2 million and provide a $220 million cash infusion from Disney and other Hulu partners. The merger is expected to create synergies by combining FuboTV’s sports focus with Hulu’s broader content library.
The consensus price target of $4.21 implies 40.8% upside.
FUBO stock is up 137.30% year-to-date.
1. The Arena Group Holdings Inc (NYSE:AREN)
Number of Hedge Fund Holders In Q4 2024: 3
The Arena Group Holdings Inc (NYSE:AREN) is a technology-driven media company that operates a portfolio of digital publishing brands, including TheStreet, Parade, and Men’s Journal.
The most important catalyst for Arena Group’s massive rally in 2025 was the announcement of a leadership shakeup in April, with the Board terminating CEO Sara Silverstein and appointing Paul Edmondson as interim CEO.
This move was interpreted as a pivot toward a more aggressive growth and transformation strategy, which the Board said required entrepreneurial leadership. Investors have also been encouraged by the company’s first-ever profitable quarter reported in late 2024, a focus on revenue diversification, and the expectation of a new growth plan under Edmondson.
AREN stock is up 241.79% year-to-date.
While we acknowledge the potential of AREN, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than AREN but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
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