The Zacks Analyst Blog Highlights: Comcast, Time Warner Cable, Charter Communications, Verizon Communications and AT&T
CHICAGO, Nov. 14, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Comcast Corp. (Nasdaq:CMCSA-Free Report), Time Warner Cable Inc. (NYSE:TWC-Free Report), Charter Communications Inc. (Nasdaq:CHTR-Free Report), Verizon Communications Inc. (NYSE:VZ-Free Report) and AT&T Inc. (NYSE:T-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday's Analyst Blog:
Telecom Stock Roundup
Last week, President Obama's strong endorsement of net neutrality created considerable turmoil in the Internet Service Providers (ISP) industry. Major cable TV operators like Comcast Corp. (Nasdaq:CMCSA-Free Report), Time Warner Cable Inc. (NYSE:TWC-Free Report), Charter Communications Inc. (Nasdaq:CHTR-Free Report), among others, lost substantial value in the stock market.
Moreover, telecom behemoths Verizon Communications Inc. (NYSE:VZ-Free Report) and AT&T Inc. (NYSE:T-Free Report) have decided to challenge the new regulation in court if the Federal Communications Commission (FCC) ultimately considers the President's proposition.
Meanwhile, non-U.S. telecom operators, including, BCE Inc., Telus Corp., Vodafone Group and Telefonica reported better-than-expected financial results for the third quarter of 2014, backed by strong wireless network growth and higher average revenue per user. Additionally, AT&T has decided to acquire Mexican wireless operator Iusacell to get a strong foothold in that country.
Recap of the Week's Most Important Stories
1. President Obama called on the FCC to make a radical change in the way the government treats high-speed broadband service and ISPs. The proposed regulations can drastically alter the entire business model of the ISP industry. Obama has asked the FCC to reclassify high-speed broadband (Internet) as a public utility under Title II of the 1934 Communications Act instead of treating Internet under section 706 of the 1996 Telecom Act. The reclassification will allow the government to strongly regulate ISPs.
All ISPs, along with several cable and telecommunications industry bodies have vehemently opposed net neutrality. Notably, Republican senators are also not in favor of this newly proposed directive. These groups believe that a slight law reformation under section 706 of the 1996 Telecom Act will be enough to enforce net neutrality. (Read More: Cable Stocks Plunge on Net Neutrality Talk.)
2. AT&T has decided to acquire Mexico's third largest wireless service provider Iusacell, controlled by Grupo Salinas. The government of Mexico has decided to reform its telecommunications sector, which is highly monopolistic with one or two companies dominating the market. The Mexican government, however, intends to increase competition by encouraging the entry of other operators. As the new reforms open up considerable scope for investment in Mexico, AT&T is trying to capitalize on the opportunity. (Read More:AT&T to Acquire Iusacell, Explore Mexican Telecom Market.)
3. AT&T has cancelled its plans to provide in-flight Wi-Fi service. The move hints at the carrier's intention to instead emphasize on international expansion and enhance video offerings. In April this year, the company had announced its decision to provide in-flight Wi-Fi service by late 2015. AT&T's withdrawal has, in turn, acted as a catalyst for Gogo Inc. – the leading Wi-Fi provider on flights in the U.S. (Read More:AT&T Drops In-Flight Wi-Fi Plans to Focus on Global Expansion.)
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
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