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Why Telefonica Brasil SA (VIV) is Surging in 2025

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We recently published a list of Why These 15 Communication Services Stocks Are up the Most So Far in 2025. In this article, we are going to take a look at where Telefonica Brasil SA (NYSE:VIV) stands against other communication services stocks that are up the most so far in 2025.

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.

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).

Why Telefonica Brasil SA (VIV) is Surging in 2025
Why Telefonica Brasil SA (VIV) is Surging in 2025

An aerial view of a telecom tower, representing the company's dedication to communication services.

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.