Little Momentum Behind Telecom Sector, MoffettNathanson Says
The U.S. telecom sector remains weak, at least in investors' view, MoffettNathanson analyst Craig Moffett said in a Thursday research note. “Almost as quickly as it started, the short-lived Telecom rally of mid-summer already seems to be fading,” Moffett wrote.…
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
“Second quarter earnings reports were initially greeted with relief, and for a hot minute the Telecom sector seemed to have gotten its mojo back. But, in retrospect, the market’s reaction to Q2 results said more about how low expectations had gotten than it did about any real improvement in fundamentals. Industry growth metrics in Q2, it should be noted, were in fact the worst the industry has ever seen. Now, whatever meager enthusiasm there was for the sector has seemingly already faded.” T-Mobile’s Netflix promotion (see 1709060040) seems little more than a “giveaway of $10 per month,” but evaluations for Verizon and AT&T remain “enticingly low” and there's investor interest in a Sprint/T-Mobile deal, Moffett wrote: “And sentiment is still, well … awful.”