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
Are You Still Paying With a Debit Card?
The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.
Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!
Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!
Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.