Alphabet, Meta Platforms, and Tencent dominate the communications sector.
Alphabet (NASDAQ:GOOG) (NASDAQ:GOOGL) is the top communications company, followed by Meta Platforms (NASDAQ:META) and Tencent (OTC:TCEHY). This is a valuable market sector, mainly due to a few of the largest communications companies at the very top.
(Editor’s note: Rankings are as of April 2, 2025.)
Image source: Getty Images.
Largest by market cap
Largest companies by market cap in the communications sector
1. Alphabet
- Market cap: $1.91 trillion (as of April 2)
- Revenue (TTM): $349.8 billion
- Gross profit (TTM): $203.8 billion
- Five-year annualized return: 23.09%
- Year founded: 1998 (Google), 2015 (Alphabet)
TTM = trailing 12 months.
Alphabet is the parent company of Google, the world’s most widely used search engine. Other products and services offered through Google include its Chrome web browser, Gmail, and the Pixel line of smartphones. Alphabet owns several other major companies, including YouTube, Waze, Nest, and Fitbit.
In 2024, a judge ruled that Google’s search business is an illegal monopoly. A penalty hasn’t been decided yet, but the U.S. Department of Justice is seeking to break up Google through the sale of its Chrome browser.
2. Meta Platforms
- Market cap: $1.48 trillion (as of April 2)
- Revenue (TTM): $164.5 billion
- Gross profit (TTM): $134.3 billion
- Five-year annualized return: 30.06%
- Year founded: 2004
Meta Platforms aims to connect people through technology. It’s the parent company of Facebook, Instagram, Messenger, and WhatsApp.
Originally known as Facebook, the company rebranded to Meta Platforms in 2021. Since then, it has invested heavily in building the metaverse and in artificial intelligence (AI) technology. Meta also develops virtual reality (VR) and augmented reality (AR) devices, including the Meta Quest.
3. Tencent
- Market cap: $585.93 billion (as of April 2)
- Revenue (TTM): $88.6 billion*
- Gross profit (TTM): $46.3 billion*
- Five-year annualized return: 7.58%
- Year founded: 1998
*Converted from Chinese yuan.
Tencent is a holding company that focuses on internet and technology services. It’s the largest publicly traded company in China and one of the world’s largest video game companies, a position it bolstered earlier this year with the acquisition of Ubisoft Entertainment (OTC:UBSFY).
This company offers multiple instant messaging apps, including WeChat. It also operates a film production company, a video streaming service, music ventures, and quite a few other products and services.
4. Netflix
- Market cap: $398.90 billion (as of April 2)
- Revenue (TTM): $39.0 billion
- Gross profit (TTM): $17.9 billion
- Five-year annualized return: 20.19%
- Year founded: 1997
With more than 300 million subscribers, Netflix is the most popular streaming service worldwide. It started as a mail-based DVD rental service before launching its streaming service in 2007. Netflix boasts a massive content library of movies, TV shows, and games, with about half of its content being Netflix Originals.
In 2024, Netflix began a push toward live sports. It streamed the boxing match between Mike Tyson and Jake Paul, the most live-streamed sporting event ever, and aired multiple NFL games.
5. T-Mobile US
- Market cap: $306.60 billion (as of April 2)
- Revenue (TTM): $81.4 billion
- Gross profit (TTM): $44.8 billion
- Five-year annualized return: 26.94%
- Year founded: 1994
T-Mobile is the second-largest wireless company in the U.S. by number of subscribers. At the end of 2024, it had approximately 130 million subscribers.
The bulk of T-Mobile’s business comes from its postpaid and prepaid wireless plans, but it also offers home internet service. To enhance its home internet, it completed the acquisition of fiber-to-the-home provider Lumos earlier this year.
6. China Mobile
- Market cap: $251.93 billion* (as of April 2)
- Revenue (TTM): $141.3 billion*
- Gross profit (TTM): $84.1 billion*
- Five-year annualized return: 13.32%
- Year founded: 1997
*Converted from Chinese yuan.
China Mobile is a state-owned Chinese telecommunications company. It’s the largest wireless carrier in China and the world, with more than 1 billion customers at the end of 2024.
The company’s links to the Chinese government have led to U.S. sanctions. The New York Stock Exchange delisted China Mobile in 2021, and the Federal Communications Commission (FCC) designated China Mobile’s U.S. subsidiary a national security threat in 2022.
7. AT&T
- Market cap: $204.43 billion (as of April 2)
- Revenue (TTM): $122.3 billion
- Gross profit (TTM): $73.1 billion
- Five-year annualized return: 12.71%
- Year founded: 1983
With 117.9 million subscribers at the end of 2024, AT&T is the third-largest U.S. wireless carrier. It offers postpaid and prepaid wireless plans, home internet, and phone and device sales.
AT&T has streamlined its services in recent years. The wireless company used to own DirecTV but spun that off into a new company in 2021. It also previously owned WarnerMedia, which it sold in 2021.
8. Verizon Communications
- Market cap: $191.04 billion (as of April 2)
- Revenue (TTM): $134.8 billion
- Gross profit (TTM): $80.7 billion
- Five-year annualized return: 1.74%
- Year founded: 1983
While it’s not the biggest by market cap, Verizon Communications is the No. 1 U.S. wireless carrier in terms of subscribers. It had 146 million subscribers at the end of 2024. Like the other major wireless companies, Verizon also offers home internet service.
9. Deutsche Telekom
- Market cap: $182.98 billion (as of April 2)
- Revenue (TTM): $183.4 billion*
- Gross profit (TTM): $117.9 billion*
- Five-year annualized return: 28.87%
- Year founded: 1995
*Converted from euros.
Deutsche Telekom is a German telecommunications company. It’s partially state-owned, with the German government holding a direct stake. Deutsche Telekom has more than a dozen subsidiaries, including T-Mobile.
10. The Walt Disney Company
- Market cap: $176.58 billion (as of April 2)
- Revenue (TTM): $92.5 billion
- Gross profit (TTM): $34.0 billion
- Five-year annualized return: 0.39%
- Year founded: 1923
The Walt Disney Company is one of the world’s most iconic media and entertainment companies. Its entertainment division includes film production, multiple streaming services, and TV channels. The experiences division has theme parks, resorts, cruises, and vacation packages. Disney also has a sports division led by ESPN.
Disney will undergo a leadership change next year when current CEO Bob Iger’s contract expires. The company plans to name a successor early in 2026.
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Key Takeaways
Communications sector takeaways for investors
The communications sector has a diverse range of companies, but they can be divided into two groups: telecommunications and information technology. Those who want to invest in this sector may want to start by narrowing down the type of communications company they’re interested in.
Wireless companies are common at the top of this market sector. They make up half of the 10 largest communications services companies. Although they sometimes underperform the overall stock market, these companies are often good dividend stocks.
Information technology companies, on the other hand, tend to be growth stocks. Alphabet and Meta are two notable examples, as each has experienced rapid growth. Whatever type of company you choose, there are valuable investment opportunities among the best communications stocks.
