AT&T (T) is very near its 52-week high of just over $40. That puts it up 50% over the last 12 months. Verizon (VZ) is right there as well, just below its 52-week high of $40. Same high, but that may be the end of it. Verizon’s shares are up 20% over the last year.
But, as Barron’s points out:
Craig Moffett, an analyst with Bernstein Research, says the company’s unit growth numbers were "spectacular," especially high-speed data and VoIP. He noted that weakness at the topline reflect a whiff on advertising – ad revenues were 24% below his forecast. The same thing happened to Comcast (CMCSA).
Moffett notes that net additions of broadband customers were up 18% for Time Warner; Comcast had reported 10% growth. But he notes that DSL providers are not doing well: net addition growth in the quarter was down 23% at Verizon (VZ), 12% at at AT&T (T) and 16% at Qwest (Q). Says Moffett: "Cable is, to be blunt, winning the broadband wars."
Fiber-to-the-home is being built by AT&T and Verizon, but a large deployment is at least two years off.
And, that will be too late. Cable stocks may hit new highs, but the run is ending for big telecoms.
Douglas A. McIntyre
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
