Latest news with #Boulben
Globe and Mail
13-03-2025
- Business
- Globe and Mail
Why Verizon, AT&T, and T-Mobile Stocks All Bounced Back Today
Telecom stocks were in a funk earlier this week, with shares of Verizon (NYSE: VZ), AT&T (NYSE: T), and T-Mobile (NASDAQ: TMUS) all tumbling on Tuesday, after comments from Verizon chief revenue officer Frank Boulben, given at a Deutsche Bank Media, Internet & Telecom Conference, caused telecommunications sectors to freak out just a little bit. Given a few days to digest the news, however, investors seem to have concluded today that things aren't quite as bleak as they seem. As of 11 a.m. ET, all three stocks are bouncing back, with Verizon gaining 1.8%, AT&T up 1.9%, and T-Mobile doing best of all with a 2.5% gain. How Verizon spooked the market As Reuters reported Tuesday, Verizon exec Boulben commented that Verizon is trying to ratchet back promotional activity to shore up its profits, but some of its rivals are going in the other direction, leading to "elevated ... competitive intensity" and more price competition in the sector (read: a price war). Verizon warned that this could lead to "soft" wireless subscriber growth for it in Q1 2025. Industry analysts were quick to chime in, predicting that mobile subscriber growth seems to be slowing in general, and warning that if telecoms focus too much on stealing customers from each other, rather than growing the market and adding value generally, this won't be great for profits. And of course, continuing worries about the effects of President Trump's tariffs didn't help matters. Worries subside It's hard to see how raising tariffs on physical goods imports into the U.S., however, is going to have too much of an effect upon U.S. providers of wireless phone services. While tariffs might raise the cost of importing new phones for subscribers, they can presumably use their existing phones just as easily -- and spend the same amount of time talking, texting, and surfing the internet with them, for that matter, all of which generates revenue for AT&T, Verizon, and T-Mobile just the same as before. At the same time, inflation worries seem to be subsiding, with the most recent inflation report coming in cooler than expected, and today's Bureau of Labor Statistics producer price index was flat against January. Investors may also be weighing the potential for new forms of telecommunications services, notably direct-to-cell satellite communications from companies such as SpaceX Starlink and AST SpaceMobile, to help grow the telecom business generally. The easier it is to use cellphones, after all, the more likely people are going to be to use them, and to pay for them. And with their plans to use satellites to eliminate cellphone dead zones, Starlink and AST are making this easier than ever before. Make the call: Which telecom stock would you buy? All that really leaves us to do, therefore, as investors, is decide: Which telecom stock should I buy? Are any of them bargains? Let's take a quick look at the numbers: Price-to-Earnings Five-Year Projected Growth Rate Dividend Yield Net Debt AT&T 16.9 1.2% 4.3% $142.5 billion T-Mobile 25.8 20.3% 1.4% $109.5 billion Verizon 10.2 2% 6.4% $167.5 billion Data source: S&P Global Market Intelligence Crunching the numbers, AT&T stands out as probably the most overvalued telecom stock. While expected to outgrow Verizon slightly, AT&T pays an inferior dividend yield and costs significantly more than Verizon. That leaves investors with two stocks to choose from. If you're more of a growth investor, T-Mobile will probably appeal to you more with its superior projected growth rate offsetting its relatively high valuation. More conservative, value-oriented and income-desiring investors, on the other hand, may find the cheap P/E ratio and generous dividend yield at Verizon more attractive. Either way, I have to say that investors who are buying back these stocks today appear to have noticed something sooner than the rest of us: Telecom stocks, as a group, are not overpriced after all. In fact, whether you're a growth investor, a value investor, or a dividend investor, there's very likely a "right" telecom stock for you. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $300,143!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $41,138!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $495,976!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon. Continue » *Stock Advisor returns as of March 10, 2025
Yahoo
12-03-2025
- Business
- Yahoo
Why Telecom Stocks Like AT&T and T-Mobile US Tumbled Today
One group of stocks that has been punished during this current market downturn is telecoms. On Tuesday, they got little respite, on news of remarks from a top executive at one of their incumbent companies. Many telecoms sank into the gloom that trading session, including big dogs AT&T (NYSE: T) and T-Mobile US (NASDAQ: TMUS); the pair closed the day down nearly 5% and 4% in price, respectively. Even associated businesses felt the pain, with networking specialist Ciena (NYSE: CIEN) losing more than 2% of its value despite publishing an estimates-beating quarterly earnings report. In an industry conference that likely wasn't as festive as some might have hoped, Verizon chief revenue officer Frank Boulben made some remarks that led investors to pull back from sector stocks. Boulben described the current first quarter as being packed with an "elevated level of competitive intensity." That sort of environment isn't all that conducive for growth, and accordingly, Boulben is expecting postpaid contract gross additions at his company to be flat or even slightly negative for the quarter. What also doesn't help Verizon or peer telecoms is increased device retention. He said that on average, consumers are keeping their phone models for more than 41 months before upgrading. That number was well lower in the recent past, at 24 months. Since Verizon, along with AT&T, is something of a pacesetter, what it's seeing on the landscape directly affects sentiment on the broader telecom industry. After all, if the company is struggling, it's likely the smaller guys are either facing headwinds already, or will soon. The market's draining optimism was reflected in the investor reaction to Ciena's otherwise encouraging fiscal first quarter of 2025 earnings release, published before market hours. For the period, the networking company booked $1.07 billion in revenue, which was 3% higher on a year-over-year basis. Non-GAAP (generally accepted accounting principles) adjusted net income was down but not by much, at $94 million ($0.64 per share) against the first quarter of fiscal 2024's nearly $97 million profit. Both headline figures, particularly the bottom-line result, topped the consensus analyst estimates of $1.05 billion on the top line and $0.42 per share for adjusted net income. Boulben's remarks come at a time when investors are a bit jittery about the possible effect of tariffs on telecom stocks. These levies haven't been as aggressive or wide-ranging as many suspected, but they could potentially affect some of the raw materials that are used for telecom equipment. This sector isn't out of the woods yet, and investors should remain cautious about it. Before you buy stock in AT&T, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AT&T wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $655,630!* Now, it's worth noting Stock Advisor's total average return is 789% — a market-crushing outperformance compared to 163% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of March 10, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy. Why Telecom Stocks Like AT&T and T-Mobile US Tumbled Today was originally published by The Motley Fool Sign in to access your portfolio
Reuters
11-03-2025
- Business
- Reuters
Verizon warns of 'soft' subscriber growth on strong competition, shares fall
March 11 (Reuters) - Verizon warned on Tuesday that first-quarter subscriber growth would likely be "soft" as rival carriers attract customers with promotions, sending its shares down 5.3% in premarket trading. The U.S. wireless giant pulled back on customer incentives after the promotion-heavy December quarter, but rivals did not, intensifying competition, Chief Revenue Officer Frank Boulben said at Deutsche Bank's Media, Internet & Telecom Conference. American telecom firms have leaned on incentives in a fierce battle for customers as growth slows in a saturated market. That has boosted subscriber growth but raised worries about profits. Shares of Verizon rival AT&T (T.N), opens new tab were down 4.5% as it also said it saw elevated subscriber churn in January, while T-Mobile US (TMUS.O), opens new tab was down 2.1%. Verizon has also seen "a slow start" to phone upgrades in the first quarter, a sign that customers were continuing to hold back on purchases amid growing worries about the U.S. economy. Still, the company expects to add more monthly-bill paying wireless subscribers in 2025 than the around 900,000 subscribers it added last year, as it benefits from its customizable myPlan. The comments follow a strong fourth quarter for U.S. telecom firms, where plans bundling 5G services with high-speed fiber data, as well as streaming services, helped attract customers. Verizon also said it did not expect a big hit due to the tightening in U.S. immigration. "We expect very limited impact on the postpaid side where customers have got to provide some form of identification to get onto a contract. So if there is any impact, we will see it towards the low end of the prepaid market," Boulben said. Since taking office in January, President Donald Trump has kicked off a sweeping immigration crackdown, tasking the U.S. military with aiding border security and issuing a broad ban on asylum.
