Changes are afoot for tech companies on the US stock market. S&P Dow Jones Indices and the Global Industry Classification Standard (GICS) have announced that they will create a new sector for tech, media, and telecom companies on September 28 – the first categorization changes for tech companies since 1999.
S&P and MSCI are eliminating the current Telecoms sector, replacing it with a new subdivision called Communications Services. Communications Services will include companies providing communication platforms, as well as media operators, ultimately forming the largest sector on the S&P 500.
Additionally, the new subdivision will integrate companies from the Consumer Discretionary sector that are presently classified under the Media and Internet and Direct Marketing Retail umbrellas. Some companies listed under Information Technology will also transition to the new sector.
The changes aim to reflect an era of immune-to-classification fluidity for some of the world’s largest tech companies – something that was foreign in 1999, during the peak of the first tech bubble. While Apple slots easily into the Technology sector and Communications Equipment industry thanks to the moneymaking machine that is the iPhone, companies like Facebook – a social network, media company, and the world’s largest news distributor, all in one – are more difficult to categorize.
The GICS hopes to better reflect the changes of the past 20 years while reminding investors where listed companies earn the bulk of their revenue. David Blitzer, S&P Dow Jones Indices index committee chairman, declared the lines between media, communications, and content to be “blurred”, admitting that “It is time to acknowledge this convergence and the overlapping services these companies provide.”
Facebook and Alphabet will both move to Communication Services from their previous tech sector categorization, with both companies’ sub-industry changing to Interactive Media and Services. Netflix will move from Consumer Discretionary to Communication (along with Disney and 21st Century Fox) while also changing sub-industry from Internet and Direct Marketing Retail to Movies and Entertainment.
The reclassification effort will affect exchange-traded funds designed to specific industries but will not require action from investors, according to investment giant Vanguard. Chris Harvey, Wells Fargo’s head of US equity and quant strategy, also posited that certain companies “may gain mindshare and potentially garner more portfolio-manager interest/dollars” as investors re-familiarize themselves with the stocks. The company estimated that only 10 percent of the S&P 500 will be influenced by the reshuffling, affecting only categorization, not index weights.
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The 50-day moving average for IYW moved above the 200-day moving average on June 26, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
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The Aroon Indicator entered an Uptrend today. In of 356 cases where IYW Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Indicator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 16 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Moving Average Convergence Divergence Histogram (MACD) for IYW turned negative on July 11, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
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IYW broke above its upper Bollinger Band on June 24, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Category Technology