iShares U.S. Telecommunications ETF (BATS: IYZ)

最新ニュース iShares U.S. Telecommunications ETF (BATS:IYZ)

iShares U.S. Telecommunications ETF

Communication Services

Technology

The Fund seeks to track the investment results of the Russell 1000 Telecommunications RIC 22.5/45 Capped Index; the Underlying Index, which measures the performance of the telecommunications sector of the U.S. equity market, as defined by FTSE Russell; the Index Provider or Russell. The Underlying Index will include large and mid-capitalization companies.

Cisco Systems, Inc.

Verizon Communications Inc

Comcast Corp Cl

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Ubiquiti Networks Inc.

AT&T, Inc.

Liberty Broadbd C

Frontier Communications Corp

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Arista Networks Inc.

iShares US Telecommunications ETF

Cisco Systems, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>) inked a 5.5-year Whole Portfolio Agreement (WPA) with MGM Resorts International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGM#NYSE">MGM</a>), granting MGM access<a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/n42042991/cisco-and-mgm-resorts-international-sign-multi-year-agreement" rel="noreferrer noopener"> to Cisco&#8217;s software portfolio</a>.
The portfolio includes cybersecurity, software-defined networking, WAN, digital experience assurance, and data center services.
This collaboration aims to enhance the guest and employee experience across all MGM Resorts properties.
The agreement will automate MGM Resorts&#8217; network, enabling future location services and next-gen machine learning applications in gaming and hospitality, enhancing guest engagement.
Cisco&#8217;s technology will also ensure uptime and security, critical for delivering exceptional guest experiences in MGM&#8217;s 24/7 operations.
Branden Newman, Chief Technology Officer, MGM Resorts International, said, &#8220;The new agreement with Cisco will give our employees the technology, speed and agility they need as we continue to deliver amazing guest experiences at all MGM Resorts&#8217; destinations.&#8221;
Marco Mohajer, President, Technologent added, &#8220;Equipped with data from across the business, we can predict and proactively address MGM Resorts&#8217; technology and communication needs to deliver an exceptional customer experience.&#8221;
Last week, Cisco reported revenue of $13.84 billion for the quarter, beating analyst estimates of $13.77 billion. Adjusted earnings per share came in at 91 cents, exceeding the expected 87 cents per share, <a target="_blank" href="https://www.benzinga.com/analyst-ratings/price-target/24/11/41981019/cisco-shares-are-dropping-today-whats-going-on" rel="noreferrer noopener">according to&nbsp;Benzinga Pro</a>.
This marks the tenth consecutive quarter that Cisco has topped estimates for revenue and earnings.
Investors can gain exposure to the stock via&nbsp;iShares U.S. Telecommunications ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) and&nbsp;First Trust NASDAQ Cybersecurity ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CIBR#NASDAQ">CIBR</a>).
Price Action: CSCO shares are up 0.59% at $57.80 at the last check Monday.
Image via Shutterstock
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CSCO

iShares Dow Jones US Telecommunications Sector Index Fund

Cisco's 5.5-Year Pact With MGM Resorts Brings Next-Gen Tech To The Casino Floor And Beyond

Cisco Systems, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>) disclosed that LTIMindtree has adopted Cisco Secure Access as its Security Service Edge (SSE) solution to provide secure hybrid work experiences for its <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/n41926853/cisco-and-ltimindtree-expand-partnership-to-deliver-next-generation-secure-access-globally" rel="noreferrer noopener">global employees and customers</a>.
The companies have expanded their partnership to offer integrated Secure Access Service Edge (SASE) solutions using Cisco technology to LTIMindtree&#8217;s global clients.
LTIMindtree&#8217;s ability to customize solutions for specific industries complements Cisco's technology, such as Cisco Secure Access and SD-WAN.
Jeetu Patel, Executive Vice President and Chief Product Officer, Cisco, added, &#8221;With AI-powered threats rising, we are combating sophisticated attackers across a more expansive landscape. Our customers need their security to operate in the background, at machine scale to make the experience seamless and secure for hybrid workers.&#8221;
LTIMindtree will leverage Cisco Secure Access as its new security service edge (SSE) solution to cover its 80,000 hybrid workers with secure internet access, advanced zero trust network access and embedded AI.
Nachiket Deshpande, Chief Operating Officer &amp; Whole-time Director, LTIMindtree said, &#8220;We were able to quickly deploy the solution, and it now protects our hybrid workforce while delivering a better user experience and simplified IT management.&#8221;
On Tuesday, Cisco introduced advanced wireless solutions, including smart Wi-Fi 7 access points and unified subscription licensing, designed to enable intelligent, <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/n41901227/cisco-introduces-intelligent-secure-and-assured-wi-fi-7-to-transform-employee-and-customer-experie" rel="noreferrer noopener">secure, and adaptable smart spaces</a>.
Investors can gain exposure to the stock via&nbsp;iShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) and First Trust NASDAQ Cybersecurity ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CIBR#NASDAQ">CIBR</a>).
Price Action: CSCO shares are trading higher by 0.15% at $58.80 premarket on Wednesday.
Photo via Shutterstock
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Cisco And LTIMindtree Join Forces To Fortify Hybrid Work Security with Cutting-Edge Solutions

While the S&amp;P 500 Index continues its post-election surge, breaking through key resistance levels, <a href="https://www.benzinga.com/topic/nasdaq-100">the NASDAQ 100</a> is struggling to keep up.
This catch-up is prompting JPMorgan analyst Jason Hunter to ask: Is this a shift in market leadership or a temporary pause for the tech-heavy index?
<h1 class="wp-block-heading">S&amp;P 500 Breaks Out, NASDAQ 100 Stalls</h1>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="794" height="464" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM.png" alt="" class="wp-image-643450" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM.png 794w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM-300x175.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM-768x449.png 768w" sizes="(max-width: 794px) 100vw, 794px" /></figure>
After the S&amp;P 500 re-accelerated through April's channel resistance and the 5850-5878 highs post-election, the index remains firmly bullish, with key support holding in the 5600s. The next resistance levels are now pegged at 6166 and 6194. Meanwhile, the NASDAQ 100 has faced a roadblock, unable to surpass its August rebound high. 
Hunter highlights that despite a broad market rally, the NASDAQ has underperformed, suggesting a potential leadership shift away from tech.
This divergence between the two indices is critical. If the NASDAQ 100 fails to break through its recent range, it would further support the idea that a regime change is in the cards — one where sectors outside of tech, like communication services, could be driving the market forward.
Read Also: <a href="https://www.benzinga.com/trading-ideas/technicals/24/10/41214202/ishares-semiconductor-etf-soxx-approaching-death-cross-despite-recent-gains-should-inves">iShares Semiconductor ETF (SOXX) Approaches Death Cross Despite Recent Gains: Should Investors Worry?</a>
<h1 class="wp-block-heading">Communication Services Steals The Spotlight</h1>
Interestingly, while the NASDAQ 100 as a whole struggles, the Communication Services sector has been leading the charge in the index's breakout. Good news for investors in the iShares U.S. Telecommunications ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#NYSE">IYZ</a>) and the SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>)
Tech and semiconductor stocks have lagged, clustered just below resistance. Relevant for investors in the Vanguard Information Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>), the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>), the Invesco QQQ Trust Series I (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) and the Invesco NASDAQ 100 ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQM#NASDAQ">QQQM</a>).
Hunter's outlook suggests that in the coming weeks these hardware-oriented stocks may get "dragged higher" if the broader market rally continues. The question remains: Will they catch up, or will they continue to underperform as the rally unfolds?
<h1 class="wp-block-heading">Semiconductor Struggles: A Key Test For Tech's Future</h1>
Semiconductors, once at the heart of tech's dominance, have been particularly sluggish. The Philadelphia Semiconductor Index (SOX) has faced stiff resistance at the 5397 July peak and the 5537 78.6% retracement level.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="794" height="464" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM.png" alt="" class="wp-image-643479" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM.png 794w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM-300x175.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM-768x449.png 768w" sizes="(max-width: 794px) 100vw, 794px" /></figure>
While it has managed to hold above the 4997 200-day moving average, Hunter is closely watching whether these resistance levels will break.
If the semiconductor sector can't clear this hurdle, it would signal a continuation of the underperformance that has characterized the group since mid-summer. 
On the other hand, if bullish momentum drags semiconductors through these barriers, it could fuel a catch-up rally in tech stocks, reversing the trend of broad market leadership shifting to other sectors.
Investors in the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>), the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) and the Direxion Daily Semiconductor Bull 3x Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NASDAQ">SOXL</a>) should remain wary of their holdings.
<h1 class="wp-block-heading">Will Tech Stage A Comeback?</h1>
Despite these challenges, Hunter remains optimistic that the post-election bullish momentum could eventually carry tech stocks, particularly semiconductors, back into the leadership role they held for much of the 2022-2024 rally. 
But if semiconductors continue to falter, and the broader market continues to rally without them, it could confirm that the days of tech dominance are coming to an end — at least for the near term.
For now, Hunter is watching for any breakouts in the tech sector, especially in semiconductors, to see if they can reclaim their former leadership position. 
The key levels to watch are the 5397 July gap for the SOX Index and the 21433-22306 range for the NASDAQ 100.
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This image was created using artificial intelligence MidJourney.

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QQQM

SOXL

iShares PHLX SOX Semiconductor Sector Index Fund

SOXX

NASDAQ 100 Struggles To Close Gap With S&P 500 During Semiconductor Slowdown

Ciena Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CIEN#NYSE">CIEN</a>) shares are trading lower on Monday. JP Morgan analyst Samik Chatterjee downgraded the company to Neutral from Overweight <a target="_blank" href="https://www.benzinga.com/quote/cien/analyst-ratings" rel="noreferrer noopener">with a price target of $65</a>.
The analyst writes that the downgrade is due to current valuations overlooking key factors that limit EPS upside, including constrained telco spending, limited gross margin levers compared to peers, and lower exposure to cloud capital expenditures.
Chatterjee says that the capex growth outlook for U.S. telcos is muted for 2025, with international telcos also lagging in recovery.
The analyst notes that Ciena&#8217;s telecom revenues are currently 9% below pre-pandemic levels, while North American telco capex is down 8%, indicating limited potential for Ciena to significantly outperform these trends.
For FY25, the analyst expects revenue growth to align with the long-term rate of 6%-8%, as telecom spending remains constrained, contrasting with prior years of outsized growth driven by pent-up demand from network underinvestment.
This month, Ciena authorized a three-year share repurchase program, <a target="_blank" href="https://www.benzinga.com/news/24/10/41147368/whats-going-on-with-ciena-stock-wednesday" rel="noreferrer noopener">starting in the 2025 fiscal year</a>.
Investors can gain exposure to the stock via SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>) and iShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>).
Price Action: CIEN shares are down 3.93% at $64.07&nbsp;at the last check Monday.
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Ciena Downgraded: Analyst Cites Telco Spending Slump And Margins Squeeze

Cisco Systems, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>) shares are trading <a target="_blank" href="https://www.benzinga.com/movers" rel="noreferrer noopener">marginally higher on Friday.</a>
The software behemoth reportedly agreed to fund CoreWeave, a cloud-computing provider valued at about $23 billion, <a href="https://www.bloomberg.com/news/articles/2024-10-03/cisco-nears-investment-in-coreweave-at-23-billion-valuation?srnd=phx-technology&amp;sref=TBDibEcD" target="_blank" rel="noreferrer noopener">reported</a> Bloomberg.
Major tech companies have been making substantial investments to enhance infrastructure for AI development. The rise of artificial intelligence applications like ChatGPT and the training of large language models has driven increased demand for cloud computing services, per a Reuters report.
Also Read: <a target="_blank" href="https://www.benzinga.com//node/41149788" rel="noreferrer noopener">OpenAI Valuation Soars To $157B In Latest Funding Round</a>
CoreWeave&#8217;s chief executive officer&nbsp;is Michael Intrator. CoreWeave counts NVIDIA Corporation, Magnetar Capital, Coatue Management, Jane Street, and Fidelity, among its investors.
The latest deal allows existing shareholders of Cisco such as employees to tender $400 million to $500 million of their holdings, Bloomberg reported earlier.
Also Read: <a target="_blank" href="https://www.benzinga.com/trading-ideas/technicals/24/09/41096549/cisco-set-for-technical-breakout-as-golden-cross-signals-strength-analyst-predicts-stock" rel="noreferrer noopener">Cisco Set For Technical Breakout As Golden Cross Signals Strength: Analyst Predicts Stock Will &#8216;Quietly&#8217; Climb Higher</a>
According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>, CSCO stock has lost over 1% in the past year. Investors can gain exposure to the stock via iShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) and First Trust NASDAQ Cybersecurity ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CIBR#NASDAQ">CIBR</a>).
Earlier this month, &nbsp;VAST Data, an AI data platform company, announced it has extended its collaboration with&nbsp;Cisco to<a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/g41121126/vast-data-expands-partnership-with-cisco-to-deliver-end-to-end-full-stack-ai-infrastructure" rel="noreferrer noopener"> further simplify AI deployments for enterprises.&nbsp;</a>
&#8220;As AI adoption grows, it&#8217;s clear that data centers will be a pivotal proving ground where business is won and lost. The challenge is that the complexity with managing, configuring, updating, and patching a modern data center is only getting harder with AI,&#8221; said&nbsp;Jeremy Foster, SVP and GM of Cisco Compute.
Price Action: CSCO shares are trading higher by 0.57% to $52.73 premarket at last check Friday.
Photo via Shutterstock
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What's Going On With Cisco Systems Stock Friday?

Roku, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROKU#NASDAQ">ROKU</a>) shares are trading higher <a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">in the morning session on Wednesday.</a>
The company has introduced Roku Ads Manager, a self-service platform <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/b40918566/roku-launches-ads-manager-a-self-service-performance-solution-for-growth-marketers" rel="noreferrer noopener">tailored for CTV performance.</a>
&#8220;In order to meet growth marketers&#8217; needs across all direct-to-consumer brands, we built a seamless solution to buying CTV video ads for brands of any size,&#8221;&nbsp;said&nbsp;Louqman Parampath, VP of Product Management, Roku.
As TV ad spending increasingly moves away from linear formats and digital-native marketers seek to expand beyond search and social media, Roku said its Ads Manager will support the success of growth marketers.
The VP noted that Roku Ads Manager is uniquely equipped to provide data, optimization, and advertising formats unavailable in other CTV self-serve solutions, such as native shoppable campaigns with Shopify, while also offering a buying experience similar to that of search and social media.
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Roku Ads Manager offers competitive pricing and spending efficiency by utilizing Roku&#8217;s direct premium inventory without third-party fees. Marketers can create interactive video overlays, allowing viewers to send themselves text messages while watching ads.
Additionally, Shopify merchants can launch self-service shoppable ads, enabling consumers to complete purchases directly using their Roku remote.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, ROKU stock has lost over 14% year to date. Investors can gain exposure to the stock via&nbsp;ARK Next Generation Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKW#NYSE">ARKW</a>) and&nbsp;iShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>).
Price Action: ROKU shares are trading higher by 2.22% to $76.33 at last check Wednesday.
Photo via Shutterstock
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Roku Introduces Innovative Ads Manager For Direct-to-Consumer Brands: Details

Comcast Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>) shares are trading lower&nbsp;after the company reported worse-than-<a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39908857/comcasts-q2-earnings-studios-and-theme-parks-pull-revenue-lower-broadband-and-video-subs-fall" rel="noreferrer noopener">expected&nbsp;second-quarter sales results yesterday</a>.
The company reported a revenue decline of 2.7% year-over-year to $29.69 billion, missing the&nbsp;analyst consensus estimate of $30.02 billion and adjusted EPS of $1.21, beating&nbsp;analyst consensus estimates of $1.12.
BofA Securities analyst Jessica Reif Ehrlic reiterated a Buy rating <a target="_blank" href="https://www.benzinga.com/quote/CMCSA/analyst-ratings" rel="noreferrer noopener">with a price target of $50</a>.
Although it&#8217;s early in the quarter and most ACP activity will be in the third quarter, the analyst is reducing the broadband net loss forecast to -150k from -165k due to positive customer response, Comcast&#8217;s targeted segmentation, and favorable seasonality.
Ehrlic revised the 2024 broadband net loss forecast to -415k (from -485k). For C&amp;P, revenue is expected to be flat (0.0%) with a 1.5% EBITDA increase (previously 1.3%), and C&amp;E revenue growth is revised to 2.1% (from 5%) with an 8% EBITDA decline (previously 2.8% growth) due to lower Theme Park and Media forecasts, especially from reduced Olympic profitability.
The analyst now projects 2024 EBITDA to be flat (previously 1.1% growth), EPS is updated to $4.20, and FCF is revised to $11.1 billion.
KeyBanc Capital Markets analyst Brandon Nispel reiterated the Overweight rating and lowered the price target to $44 from $45.
The analyst writes that near-term catalysts are elusive, with challenges in Theme Park growth and Peacock loss improvement due to lower domestic park attendance and the NBA contract.
Nispel writes that they remain positive on CMCSA&#8217;s efficient Broadband operations and modest growth, though short-term subscriber trends are challenging and recovery timelines are pushed out.
The analyst expects low-single-digit operating cash flow growth, reduced capital spending in 2025, and FCF growth (excluding one-time Hulu tax payments), which should lead to shareholder returns despite ongoing competitive challenges.
Oppenheimer analyst Timothy Horan reaffirmed the Outperform rating with a price target of $55.
The analyst writes that main concern is high broadband losses due to increasing FWA/fiber competition, impacting Video/Voice subscribers.
While the company offers aggressive bundled promotions, the analyst adds that it remains focused on FCF generation. He projects subscriber trends to remain volatile in the near term.
Investors can focus on the stock via Simplify Exchange Traded Funds Simplify Next Intangible Value Index ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/NXTV#BATS">NXTV</a>) and IShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>).
Price Action: CMCSA shares are down 1.58% at $37.90 at the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Wikimedia Commons
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Comcast Faces Headwinds: Analysts Adjust Expectations Amid Broadband Struggles and Theme Park Downturns

Peacock and its parent company, Comcast Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>), are gearing up for a pivotal moment with the upcoming 2024 Olympics in Paris.
Pacock's president, Kelly Campbell, is spearheading efforts with two dedicated task forces to attract viewers during the Games and ensure they remain engaged afterward.
With the opening ceremonies just days away, Campbell and her superiors believe the Olympics will significantly boost Peacock's position in the competitive streaming landscape against giants like Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) and Walt Disney Co's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) Disney+, <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-07-22/comcast-bets-on-paris-olympics-to-make-peacock-a-must-have?srnd=phx-industries-entertainment&amp;sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a> reports.
"This is going to be a defining moment for Peacock," Campbell said in a recent interview. Over a 19-day period, Peacock will exclusively stream every Olympic event for U.S. viewers, offering thousands of hours of live and on-demand content, including a high-tech morning recap narrated by an AI-synthesized version of Al Michaels' voice.
For NBCUniversal, Comcast's media division, the stakes are high. The division, which owns several cable networks like Bravo, E!, and USA, faces significant pressure as viewers continue to shift from traditional TV bundles to streaming services, Bloomberg writes.
Comcast has invested billions into Peacock, yet it still trails behind competitors like Netflix and Walt Disney.
Comcast had intended to use the 2020 Tokyo Olympics to launch Peacock, but the pandemic delayed the launch. Despite the setbacks, the service launched in July 2020.
Related Read: <a target="_blank" href="https://www.benzinga.com/m-a/24/07/39838603/warner-bros-discovery-shares-are-surging-thursday-as-ceo-considers-asset-sales-spinoff" rel="noreferrer noopener">Warner Bros Discovery CEO Considers Asset Sales, Spinoff</a>
Unlike other streaming services, Peacock started as a free, ad-supported platform with optional paid tiers. Initially, it struggled to attract subscribers without the Olympic boost, but the pandemic created a captive audience that drove growth.
In a strategic meeting in 2021, Comcast CEO Brian Roberts approved increased investments in Peacock, including more original content, movies, and sports.
The platform has since reclaimed popular series and movies and released hit originals like "Poker Face" and "The Best Man: The Final Chapters." Peacock has also secured exclusive rights to major sports events, including NBA and NFL games, bolstering its appeal.
Peacock now costs $7.99 a month following price increases to fund new programming. Despite high churn rates, the service continues to attract new subscribers, partly due to its strategic releases during major sporting events.
The upcoming Olympics will feature promotions for new shows like "Fight Night" and "The Day of the Jackal," leveraging the excitement of the Games to retain viewers.
With 34 million subscribers as of March, Peacock outperforms some rivals in U.S. viewership.
Comcast stock has lost more than 5% in the last 12 months. Investors can gain exposure to the stock via&nbsp;IShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) and Vanguard Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>).
Price Action: CMCSA shares were trading lower by 3.04% at $38.93 premarket at the last check on Tuesday.
Read Next:
<ul>
<li><a href="https://www.benzinga.com/general/entertainment/24/06/39496372/comcasts-universal-plans-new-uk-theme-park-eyes-massive-job-creation-report" target="_blank" rel="noreferrer noopener">Comcast's Universal Plans New UK Theme Park, Eyes Massive Job Creation: Report</a></li>
</ul>
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by rarrarorro on Shutterstock

NFLX

Comcast's Paris Olympics Bet For Boosting Peacock's Viewership: Report

Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) is reportedly considering a significant move to sell thousands of mobile phone towers across the U.S.
Verizon has engaged advisors to assess potential buyers&#8217; interest in a package comprising approximately 5,000 to 6,000 towers. A possible sale could yield over $3 billion, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-07-15/verizon-is-said-to-explore-selling-thousands-of-towers-in-us?sref=TBDibEcD" rel="noreferrer noopener">cites</a> familiar sources, although discussions are in the early stages and do not guarantee a transaction.
Also Read: <a target="_blank" href="https://www.benzinga.com/news/24/07/39779025/verizon-and-at-t-clash-over-14b-firstnet-spectrum-proposal" rel="noreferrer noopener">Verizon And AT&amp;T Clash Over $14B FirstNet Spectrum Proposal</a>
In 2015, Verizon offloaded lease and operational rights for about 11,000 towers to American Tower Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMT#NYSE">AMT</a>) for an upfront payment of $5 billion. This deal helped Verizon raise funds for airwave purchases and debt reduction, according to Bloomberg.
The current batch of towers will likely attract interest from infrastructure companies and strategic investors. Major telecom firms often leverage their mobile phone tower assets to generate cash.
Goldman Sachs analyst <a target="_blank" href="https://www.benzinga.com/news/24/07/39580917/verizon-at-t-and-t-mobile-set-for-gains-goldman-sachs-cites-ai-and-data-center-demand" rel="noreferrer noopener">views the U.S. telecom</a> sector optimistically, emphasizing the transformation underway among wireless carriers and data centers.
Verizon stands out in Schneider&#8217;s analysis for its strengthening wireless operations and promising prospects in fixed wireless for both consumer and business segments.
Investors tracking developments can consider exposure through Vanguard Telecommunication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>) and iShares U.S. Telecommunications ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#NYSE">IYZ</a>).
<h2 class="wp-block-heading">Verizon Stock Prediction For 2024</h2>
Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.
Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Verizon Communications, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Verizon Communications, the 200-day moving average sits at $38.68, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, which is below the current price of $40.79. For more on charts and trend lines, <a href="https://pro.benzinga.com/">see a description here.</a>
Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.
Price Action: VZ stock traded higher by 0.27% at $40.90 premarket at the last check on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

Asset Sales

Telecom Giant Verizon Eyes Tower Sell-Off To Monetize Asset

Comcast Corp&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>) Universal division is reportedly exploring the possibility of developing a major new theme park in the U.K., potentially generating substantial economic benefits and job opportunities.
The proposed park is expected to create around 20,000 construction roles and 8,000 permanent jobs post-completion. The economic impact is projected to reach approximately £35.1 billion ($44.5 billion) over the construction phase and the first two decades of operation, reported <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-06-26/comcast-s-universal-touts-benefits-of-new-theme-park-near-london?srnd=technology-vp&amp;sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a>.
Strategically positioned a mere 35-minute train ride north of London, the park could include a Harry Potter-themed land among other attractions, mirroring the success of Universal&#8217;s parks in Orlando, Florida.
Also Read: <a target="_blank" href="https://www.benzinga.com/general/entertainment/24/05/39014369/thanks-vivek-comcast-sells-part-of-buzzfeed-after-stock-rally-from-politicians-purchase" rel="noreferrer noopener">Thanks Vivek! Comcast Sells Part Of BuzzFeed After Stock Rally From Politician&#8217;s Purchase</a>
Page Thompson, president of new ventures at Universal, mentioned that the decision to proceed with the project will be made later this year, per the report. If approved, construction could span six to seven years, aiming for a 2030 opening.
In collaboration with the U.K.&#8217;s Department for Culture, Media and Sport, Comcast plans to enhance local infrastructure, including roads and train stations, to support the new park.
Comcast&#8217;s first-quarter revenue increased 1.2% year-over-year to $30.058 billion, beating the analyst consensus estimate of $29.811 billion. Earnings of $1.04 per share <a target="_blank" href="https://www.benzinga.com/news/earnings/24/04/38430271/comcast-q1-earnings-revenue-beat-eps-beat-peacock-subscribers-up-55-yoy-and-more" rel="noreferrer noopener">beat analyst estimates of 99 cents per share</a>.
Comcast stock has lost more than 5% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) and Vanguard Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>).
Price Action: CMCSA shares closed lower by 0.21% at $38.40 on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Read Next: <a href="https://www.benzinga.com/markets/equities/24/05/38987565/comcast-plans-138m-fiber-network-expansion-in-utah" target="_blank" rel="noreferrer noopener">Comcast Plans $138M Fiber Network Expansion In Utah</a>
Photo via Wikimedia Commons

Entertainment

Travel

Comcast's Universal Plans New UK Theme Park, Eyes Massive Job Creation: Report

Comcast Corporation&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>) launched a new brand of quality, low-cost internet, mobile, and streaming TV products that consumers&nbsp;<a target="_blank" href="https://www.benzinga.com/pressreleases/24/04/b38296504/comcast-launches-now-a-new-brand-and-product-portfolio-that-redefines-low-cost-internet-mobile-and" rel="noreferrer noopener">can purchase month-to-month</a>.
The brand &#8211; known as NOW &#8211; provides NOW Internet prepaid service and NOW Mobile, among others.
The NOW portfolio is poised to be particularly impactful for Americans looking for cost-effective connectivity.&nbsp;
The federal government recently announced that April is the last full month of the Affordable Connectivity Program (ACP) if it does not receive additional funding.&nbsp;
Also Read:&nbsp;<a target="_blank" href="https://www.benzinga.com/news/24/04/38189737/comcasts-market-valuation-does-not-reflect-fair-value-for-its-significant-growth-portfolio-analyst" rel="noreferrer noopener">Comcast&#8217;s Market Valuation Does Not Reflect Fair Value For It&#8217;s Significant Growth Portfolio: Analyst</a>
NOW Internet and Mobile will provide customers enrolled in ACP with another option for affordable, reliable connectivity.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, CMCSA stock has gained over 1% in the past year. Investors can gain exposure to the stock via&nbsp;IShares U.S. Telecommunications ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) and&nbsp;Northern Lights Fund Trust III FPA Global Equity ETF&nbsp;&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/FPAG#BATS">FPAG</a>).
NOW Internet subscribers have the option to select from two prepaid plans: one offering 100 Mbps for $30 per month and another providing 200 Mbps for $45 monthly.
NOW Mobile will provide unlimited 5G data, talk and text for $25/line.
Comcast added that NOW Mobile is a new prepaid service that includes 5G data and access to more than 23 million WiFi hotspots, unlike any other provider in the prepaid category, it said in a press release.
NOW TV, available to Xfinity Internet subscribers, presents a streaming service comprising live and on-demand content from over 40 networks, over two dozen integrated FAST channels, and Peacock Premium, all for $20 per month.
NOW WiFi Pass gives customers unlimited access to more than 23 million Xfinity WiFi hotspots for $20 for 30 days.
The company said that the brand has all-in pricing and no contracts or credit checks.
Read Next:&nbsp;<a target="_blank" href="https://www.benzinga.com/markets/equities/24/04/38296131/ford-recalls-456-565-suvs-and-trucks-over-low-battery-issue-nhtsa-warns-of-safety-risks-report" rel="noreferrer noopener">Ford Recalls 456,565 SUVs And Trucks Over Low Battery Issue, NHTSA Warns Of Safety Risks: Report</a>
Price Action: CMCSA shares are trading higher by 0.64% to $39.24 premarket on the last check Thursday.
Photo via Shutterstock

Northern Lights Fund Trust III FPA Global Equity ETF

FPAG

Looking For Affordable Connectivity And Streaming? Comcast Unveils NOW - Eyes Prepaid And Month-to-month Internet

Ligado Networks&nbsp;filed a lawsuit against the U.S. government, alleging that the Defense Department and Commerce Department obstructed its business plans with a calculated disinformation campaign.&nbsp;
The long-struggling satellite company seeks compensation of up to $39 billion for the spectrum rights it claims were unjustly denied.&nbsp;
This legal action comes amid the looming threat of $4 billion in November bond payments, as Ligado has been navigating financial instability while striving to secure its spectrum rights.
The heart of the matter revolves&nbsp;<a class="editor-rtfLink" href="https://www.wsj.com/articles/ligado-sues-u-s-seeking-39-billion-in-spectrum-fight-888ad542?mod=latest_headlines" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">around</a>&nbsp;Ligado&#39;s contention that the Pentagon and Commerce Department used a false pretext to deny the company the wireless spectrum licenses that should have been commercially available, the Wall Street Journal noted.&nbsp;
Federal officials at both departments have consistently argued that Ligado&#39;s planned fifth-generation wireless signals could disrupt the Global Positioning System (GPS) functionality.
Ligado&#39;s lawsuit further alleges that the Pentagon took control of Ligado&#39;s spectrum in the L-band without disclosing alternative purposes to other regulators or Congress.&nbsp;
The Pentagon frequently uses this frequency range for classified weapons and communication programs, rendering it unavailable for civilian use.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Government

Legal

FCOM

FIVG

RSPC

TMUS

Beleaguered Satellite Firm Ligado Networks Sues US for $39B in Spectrum Rights Dispute

The U.S. telecommunications industry is experiencing a volatile period following a detailed investigation conducted by the Wall Street Journal revealing that telecom companies, such as AT&amp;T Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>), Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), Telephone and Data Systems Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDS#NYSE">TDS</a>), Frontier Communications Parent Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FYBR#NASDAQ">FYBR</a>) and others neglected more than 2,000 lead-containing cables across the country that were installed under the old Bell System <a href="https://www.benzinga.com/government/23/07/33158334/toxic-lead-covered-cables-from-at-t-verizon-and-other-telecoms-are-hazardous-wsj">and are now decaying.</a>
Environmental researchers, collaborating with Journal reporters, conducted tests on water and sediment samples from various locations. Shockingly, eight out of 12 tests showed elevated levels of lead contamination.
<h2 class="wp-block-heading">Lead-Cabling Controversy Hits Telecoms Stocks: Analysts React</h2>
The market impact was swift and severe. Analysts, including <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/07/33256330/at-t-verizon-plummet-to-multidecade-lows-toxic-lead-investigation-sparks-telco-sell">Citigroup&#8217;s Michael Rollins</a>, wasted no time downgrading the affected stocks due to the environmental threat. 
On Monday, shares of AT&amp;T plummeted to their lowest value since 1993, dropping 7%. Although there was a slight recovery attempt on Tuesday&#8217;s opening, AT&amp;T ultimately closed flat. 
Verizon shares also experienced a significant decline, hitting their lowest point in over a decade on Monday with a 7.5% drop, followed by a marginal 2.4% rebound on Tuesday. TDS saw the most notable recovery on Tuesday, surging 9% after an 8.4% decline on Monday.
<h2 class="wp-block-heading">Telecom Companies Respond to Lead Cable Concerns:</h2>
In response to the Wall Street Journal&#8217;s investigation, the telecom companies and USTelecom, a group representing the broader industry, defended their practices. 
They emphasized that they provide safety training and protective gear to workers to handle lead properly. 
AT&amp;T said in a press release that it does not consider lead-sheathed cables to be a public health concern, citing scientific literature. The company also criticized the testing methodologies used by the newspaper and questioned the credibility of one of the testing companies due to a conflict of interest.
TDS acknowledged the presence of a limited amount of lead cabling in its network and said it is identifying the next steps to address the issue while complying with applicable laws. Verizon did not issue a PR on the matter.
<h2 class="wp-block-heading">5 ETFs With The Highest Exposure To Telecom Stocks</h2>
Among the exchange-traded funds that show a concentration of holdings in telecommunication stocks affected by the lead-cabling crisis, Benzinga found:
<figure class="wp-block-table"> 
<table>
<thead>
<tr>
<th>ETF Name</th>
<th>T (weight %)</th>
<th>VZ (%)</th>
<th>TDS (%)</th>
<th>FYBR (%)</th>
</tr>
</thead>
<tbody>
<tr>
<td>iShares U.S. Telecommunications ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#NYSE">IYZ</a>)</td>
<td>4</td>
<td>11.8</td>
<td>0</td>
<td>2.5</td>
</tr>
<tr>
<td>iShares Trust &#8211; iShares Global Comm Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IXP#NYSE">IXP</a>)</td>
<td>2.59</td>
<td>3.55</td>
<td>0</td>
<td>2.3</td>
</tr>
<tr>
<td>SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>)</td>
<td>3</td>
<td>3.1</td>
<td>3.5</td>
<td>3</td>
</tr>
<tr>
<td>Vanguard Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>)</td>
<td>3.8</td>
<td>4.4</td>
<td>0.1</td>
<td>0</td>
</tr>
<tr>
<td>Invesco S&amp;P 500 Equal Weight Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RSPC#NYSE">RSPC</a>)</td>
<td>4</td>
<td>4.1</td>
<td>0</td>
<td>0</td>
</tr>
</tbody>
</table>
</figure>
Also Read: <a href="https://www.benzinga.com/news/23/07/33253034/whats-going-on-with-verizon-shares">What&#8217;s Going On With Verizon Shares</a>
Photo: Shutterstock

First Trust Morningstar Dividend Leaders Index Fund

FYBR

iShares Trust S&P Global Telecommunications Sector Index Fund

VLUE

Telecom Stocks Under Pressure As Toxic Lead Cable Concerns Discourage Buyers: 5 ETFs To Watch

Shares in telecom giants AT&amp;T Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>), Verizon Communication Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), Telephone and Data Systems, Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/TDS#NYSE">TDS</a>), and Frontier Communication Parent, Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FYBR#NASDAQ">FYBR</a>) dropped dramatically Monday, shedding 7% to 15%. The Wall Street Journal&#8217;s investigation revealing the neglect of a network of harmful lead-coated cables <a href="http://benzinga.com/government/23/07/33158334/toxic-lead-covered-cables-from-at-t-verizon-and-other-telecoms-are-hazardous-wsj">prompted the market backlash.</a>
In a note released Monday, Citigroup analyst Michael Rollins examined the situation regarding the cable network deployed by these telecom companies nationwide. 
According to Rollins, a considerable percentage of these cables may have lead sheathing, with varied amounts of exposure for each company. As a result, the analyst believes that this issue will continue to have an impact on stocks and their valuation for a few months, if not longer, until the market has a better understanding of the financial risk involved.
Rollins stated that gathering more information regarding the matter could take several months, and that a final resolution could take years. According to Citigroup&#8217;s current scenario estimate, most wireline telecommunications companies will experience a firm valuation discount ranging from 0.2x to 1.0x of EBITDA.
Also Read: <a href="https://www.benzinga.com/markets/eurozone/23/07/33255186/tesla-prepares-to-double-berlin-factory-size-aiming-for-1-million-evs-annually">Tesla Prepares To Double Berlin Factory Size, Aiming For 1 Million EVs Annually</a>
Chart: AT&amp;T Tumbles to February 1993 Levels, Verizon to November 2010
<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="1024" height="702" src="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/17152456/T_2023-07-17_21-22-59_aba83-1024x702.png" alt="" class="wp-image-69555" srcset="https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/17152456/T_2023-07-17_21-22-59_aba83-1024x702.png 1024w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/17152456/T_2023-07-17_21-22-59_aba83-300x206.png 300w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/17152456/T_2023-07-17_21-22-59_aba83-768x526.png 768w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/17152456/T_2023-07-17_21-22-59_aba83-1536x1052.png 1536w,https://s3.amazonaws.com/editorial.benzinga.com/wp-content/uploads/2023/07/17152456/T_2023-07-17_21-22-59_aba83.png 1804w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
<h2 class="wp-block-heading">Citigroup Actions</h2>
In response to recent developments, Citigroup has downgraded its ratings on AT&amp;T, Telephone and Data Systems, and Frontier Communication to Neutral/High Risk. While the price targets for these stocks have been reduced to $16, $8, and $17, respectively.
<h2 class="wp-block-heading">ETF That Holds Telcos</h2>
The U.S.-listed exchange-traded funds with the highest exposure to AT&amp;T are the iShares MSCI USA Value Factor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VLUE#NYSE">VLUE</a>) with a 5.1% weight and the iShares U.S. Telecommunications ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#NYSE">IYZ</a>) with a 4.2% weight.
The iShares Trust &#8211; iShares U.S. Telecommunications ETF also has a large stake in Verizon (12.4%), which is also represented by an 8.3% weight in the First Trust Morningstar Dividend Leaders Index Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FDL#NYSE">FDL</a>). 
Frontier Communication is a 3% holding in the SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>).
<h2 class="wp-block-heading">Telcos&#8217; Response</h2>
In response to the investigation, AT&amp;T and USTelecom, an industry group, developed websites debunking concerns about the environmental and public health implications of lead cables. 
A spokesperson for USTelecom emphasized that&nbsp;there is no evidence that legacy lead-sheathed telecom cables are a significant source of lead exposure or a public health concern. The representative additionally stressed the importance of safe work procedures in the telecommunications industry in avoiding worker exposure to lead.
Read now: <a href="https://www.benzinga.com/news/23/07/33249131/at-t-stock-is-trading-lower-whats-going-on">AT&amp;T Stock Is Trading Lower: What&#8217;s Going On?</a>
Photo: Shutterstock

AT&T, Verizon Plummet To Multidecade Lows: Toxic Lead Investigation Sparks Telco Sell-Off, Analysts Head For The Exits

The iShares U.S. Telecommunications ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/iyz#BATS">IYZ</a>) is down roughly 35% year-to-date, while the S&amp;P 500 is down approximately 22.6% year-to-date.
As the communications services sector has been dragged down far worse than other sectors in the S&amp;P 500, now may be an opportune time to bargain hunt for stocks that have been artificially dragged <a href="https://www.benzinga.com/markets/options/22/10/29241831/verizon-communications-whale-trades-spotted">down with the market</a>.
For instance, Verizon Communications Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/vz#NYSE">VZ</a>) and AT&amp;T (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/t#NYSE">T</a>) have seen their yields soar, as the <a href="https://www.benzinga.com/money/best-sectors-to-invest-in-right-now/">sector</a> plummets. A key factor to consider is that during times of recession, consumers still need to pay phone and internet bills, which could lead to an eventual rebound.
The SPDR S&amp;P 500 ETF Trust&nbsp;(ARCA: SPY) has an average dividend yield of 1.64%, while the communications services <a href="https://www.benzinga.com/money/best-sectors-to-invest-in-right-now/">sector</a> has the highest average dividend yield in the S&amp;P 500 of 6.89%
Go To:&nbsp;<a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/10/29290832/netflix-q3-earnings-preview-analysts-pinpoint-key-metrics-for-investors-to-watch">Netflix Q3 Earnings Preview &mdash; Analysts Pinpoint Key Metrics For Investors To Watch</a>
Spok Holdings Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/spok#NASDAQ">SPOK</a>) is offering a dividend yield of 16.23% or $1.25 per share annually, utilizing quarterly payments, with a track record of increasing its dividends once in the past year.
Spok Holdings is a global leader in critical communication solutions and continues to innovate to set the standard for the future of healthcare communication. Spok solutions are in more than 2,200 hospitals, including all of the adult and children&rsquo;s hospitals named to U.S. News &amp; World Report&rsquo;s Best Hospitals Honor Roll, as its customers make more than&nbsp;100 million messages each month.
In the second quarter, Spok saw its software bookings increase by 23% year-to-date, touting 32 deals worth over six figures each.
&ldquo;We are very encouraged about our prospects for the second half of 2022 and beyond, and our focus remains on creating value for our stockholders by maximizing revenue and cash flow generation,&rdquo; said Vincent D. Kelly, president and CEO of Spok Holdings.
Lumen Technologies Inc&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lumn#NYSE">LUMN</a>) is offering a dividend yield of 14.47% or $1&nbsp;per share annually, making quarterly payments, with an inconsistent track record of increasing its dividends.
Lumen Technologies is one of the U.S&#39;s largest telecommunications carriers serving global enterprises, with 450,000 route miles of fiber. This includes over 35,000 route miles of subsea fiber connecting Europe, Asia&nbsp;and Latin America.
&quot;We improved our revenue trajectory and accelerated the number of Quantum Fiber locations enabled in the second quarter,&rdquo; said&nbsp;Lumen&nbsp;President and CEO Jeff Storey.
Lumen completed the $2.7 billion divestiture of its Latin American business to Stonepeak on Aug. 1, and saw its net income decline in the second quarter of 2022 of $344 million, from the previous <a href="https://www.benzinga.com/markets/penny-stocks/22/10/29203538/short-interest-sector-focus-communication-services-sector">period&#39;s year of $506 million</a>.
Photo:&nbsp;<a href="https://www.shutterstock.com/g/chombosan">metamorworks</a>&nbsp;via Shutterstock

Long Ideas

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Small Cap

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LUMN

SPOK

Do Tech Stocks Pay High Dividends? These 2 Yielders Surpass Their Peers

On CNBC&rsquo;s &ldquo;<a href="https://www.cnbc.com/video/2022/08/08/final-trades-uber-nvidia-telecom-more.html">Halftime Report Final Trades</a>,&rdquo; Liz Young of BNY Mellon Investment Management said that iShares US Telecommunications ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/iyz#BATS">IYZ</a>) &quot;hasn&rsquo;t come back as much in this rally as some of the other stocks,&quot; meaning there wasn&rsquo;t as much &ldquo;multiple expansion.&rdquo;
&ldquo;I think that there could be a nice rally if we see bullish sentiment by the end of the year,&rdquo; Young added.
Stephen Weiss of Short Hills Capital Partners chose Ford Motor Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/f#NYSE">F</a>). &ldquo;The Inflation Reduction Bill is not allowing credits for cars over 55,000 or trucks over 80,000,&rdquo; Weiss stated. Most cars don&rsquo;t apply for the credit, but Ford does, he added. &ldquo;I think Ford is gonna be one of the primary beneficiaries of this,&rdquo; Weiss mentioned.
Check out other stocks making moves in the <a href="https://www.benzinga.com/premarket/">premarket</a>.
&nbsp;&quot;Shark Tank&quot; investor&nbsp;Kevin O&#39;Leary, known as &quot;Mr. Wonderful,&quot; said that when Nvidia Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) was on sale, &ldquo;they missed on gaming, but what they make is going to be in demand in all 11 sectors of the economy.&rdquo; &ldquo;Either data center or semis, that&rsquo;s a trend that is gonna stick for years to come,&rdquo; he added.
Also Read:&nbsp;<a href="https://www.benzinga.com/news/22/08/28411403/indian-billionaire-outperforming-elon-musk-jeff-bezos-this-year-takes-zero-salary-home">Indian Billionaire Outperforming Elon Musk, Jeff Bezos This Year Takes Zero Salary Home</a>
Joseph Terranova of Virtus Investment Partners named Uber Technologies Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uber#NYSE">UBER</a>) as his final trade.

UBER

CNBC's Final Trades: iShares Telecom, Nvidia, Uber, And This Big Three Automaker

CNBC&rsquo;s &quot;Fast Money: Halftime Report&quot; delivers market-moving news to investors.
The commentary delivered by hosts of the show often moves the stocks mentioned. The information is collected and refined using <a href="https://benzinga.grsm.io/register174">Benzinga Pro&rsquo;s</a> News Tool. Benzinga Pro users can access this information by using the News tool on any workstation.
Traders on the show bought the following stocks:
Nvidia Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>) Kevin O&rsquo;Leary purchased shares of Nvidia, calling it a &ldquo;discount.&rdquo;
Call of the day:
Apple Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/aapl#NASDAQ">AAPL</a>)
Final trades:
Ford Motor Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/f#NYSE">F</a>)
NVIDIA Corporation (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/nvda#NASDAQ">NVDA</a>)
Uber Technologies Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uber#NYSE">UBER</a>)
iShares US Telecommunications ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/iyz#BATS">IYZ</a>)

AAPL

Kevin O'Leary Says This Chipmaker's Stock Is A 'Discount'

<ul>
<li>Congress&rsquo;s temporary $3.2 billion broadband subsidy program has seen over 2.3 million U.S. households subscribed,&nbsp;<a class="editor-rtfLink" href="https://www.reuters.com/world/us/more-than-23-million-us-households-sign-up-broadband-subsidy-fcc-2021-06-07/" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">Reuters reported</a>&nbsp;based on the Federal Communications Commission (FCC) data.</li>
<li>Over 1,000 broadband providers have agreed to support the program aimed towards the lower-income and pandemic afflicted Americans to provide internet access to the underserved communities.</li>
<li>Some providers expect the program initiated on May 12 to run out of funds in four to six months.</li>
<li>Verizon Communications Inc&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/vz#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">VZ</a>),&nbsp;T-Mobile US Inc&nbsp;(NASDAQ:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/tmus#NASDAQ" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">TMUS</a>),&nbsp;AT&amp;T Inc&nbsp;(NYSE:&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/stock/t#NYSE" style="color:#4a6ee0; background:transparent; margin-top:0pt; margin-bottom:0pt" target="_blank">T</a>) are some of the U.S.&rsquo;s major broadband providers.</li>
<li>Reuters notes there are 33.2 million households eligible for the subsidy.</li>
</ul>

CHTR

LBRDA

LBRDK

Over 2.3M US Households Signed for Broadband Subsidy: Reuters

Ten-year <a href="https://www.benzinga.com/topic/u-s-treasury">U.S. Treasury</a> yields hit 3 percent on Tuesday for the first time since 2014, but the stock market hasn&rsquo;t initially reacted the way investors might expect.
<h3>
	What Happened</h3>
The 10-year Treasury yield reached the 3-percent psychological level Tuesday morning, triggering fears that inflation could be ramping up too quickly. Rapidly rising interest rates and inflation can eat into corporate profits. In addition, higher yields on fixed-income investments tend to sap money out of the stock market, particularly from dividend stocks.
To make matters worse, the yield curve &mdash; the difference between short-term rates and long-term rates &mdash; has been flattening. In the past, the yield curve has often inverted prior to U.S. recessions.
<h3>
	Why It Matters</h3>
As would be expected, the stock market tanked Tuesday, with the Dow Jones Industrial Average ETF (NYSE: <a class="ticker" href="/stock/dia#NYSE">DIA</a>) down 2.2 percent and the SPDR S&amp;P 500 ETF Trust (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) down 1.7 percent in mid-day trading. The market leaders and laggards have been<a href="https://www.bloomberg.com/news/articles/2018-04-23/yen-drop-to-buoy-japan-stocks-as-dollar-rallies-markets-wrap"> somewhat unexpected</a>.
The iShares Dow Jones US Telecom (ETF) (NYSE: <a class="ticker" href="/stock/iyz#NYSE">IYZ</a>), which contains high-yielding telecom stocks that would typically be hit hard by rising rates, was mostly flat on the day. At the same time, the Utilities SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>) was up 0.6 percent and the iShares US Real Estate ETF (NYSE: <a class="ticker" href="/stock/iyr#NYSE">IYR</a>) was up 0.1 percent. Both sectors are filled with high-yielding stocks.&nbsp;
<h3>
	What&rsquo;s Next</h3>
Investors will be keeping a close eye on where Treasury yields progress in the coming weeks, particularly when it comes to the yield curve. In addition, investors will be watching the <a href="https://www.benzinga.com/federal-reserve">Federal Reserve</a> closely for commentary related to interest rates and inflation following its next meeting May 1-2.
Related Links:
<a href="https://www.benzinga.com/markets/bonds/18/02/11200307/why-increases-in-us-bond-yields-hurt-your-stocks">Why Increases In US Bond Yields Hurt Your Stocks</a>
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/18/02/11120075/analyst-reits-falling-on-rising-treasury-bond-rates">Analyst: REITs Falling On Rising Treasury Bond Rates</a>

Bonds

Federal Reserve

SPDR Dow Jones Industrial Average ETF Trust

iShares Trust Dow Jones US Real Estate Fund Index

3% Treasury Yield Triggers Puzzling Market Reaction

The S&amp;P 500 index continues to trade near historical all-time highs but that doesn't mean every sector within the index is trading in the green for 2017. Quite the contrary, three sectors within the index are lagging the index by the widest margin seen in decades, according to Fundstrat Global Advisers.
As a whole, the S&amp;P 500 index and the SPDR S&amp;P 500 ETF Trust (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) is up around 9 percent this year, but energy (Energy Select Sector SPDR (ETF) (NYSE: <a class="ticker" href="/stock/xle#NYSE">XLE</a>)), telecommunications services (iShares Dow Jones US Telecom (ETF) (NYSE: <a class="ticker" href="/stock/iyz#NYSE">IYZ</a>) and financial sectors (Financial Select Sector SPDR Fund (NYSE: <a class="ticker" href="/stock/xlf#NYSE">XLF</a>))are all down by an average of 7.7 percent. In fact, this under-performance represents the largest gap dating back all the way to 1990, and over the past three decades, the bottom three performing sector have never been energy, telecommunications services, and financials.
<h3>The Other Side Of The Story</h3>
While the three sectors are underperforming the broader index, this is occurring after a major runup, especially in the first quarter of last year, S&amp;P Global's Erin Gibbs said during a recent <A href="http://www.cnbc.com/2017/06/03/three-sectors-are-lagging-the-sp-500-by-a-historic-degree-this-year.html">CNBC "Trading Nation"</a> segment.
Of particular note, the <A href="https://www.benzinga.com/media/cnbc/17/06/9550416/financial-stocks-are-now-red-for-2017-but-some-analysts-see-more-pain-ahead">financial sector</a> is "coming off froth valuations" after a notable 20 percent rally in the fourth quarter last year. Energy stocks can't be faulted as it is merely following the decline in <A href="http://www.benzinga.com/topic/oil">oil prices</a> while telecoms and other high dividend yielding sectors are seeing investors exiting their positions.
Given the underperformance so far in 2017, the three sectors are now approaching "reasonable valuations and reasonable pricing," Gibbs added.
Related Links:
<a href="https://www.benzinga.com/media/cnbc/17/06/9563088/pro-itd-be-a-mistake-for-investors-to-hit-the-exits-now">Pro: It'd Be A Mistake For Investors To 'Hit The Exits' Now</a>
<A href="https://www.benzinga.com/fintech/17/06/9562810/the-factors-that-could-be-moving-short-and-long-term-buyers">The Factors That Could Be Moving Short- And Long-Term Buyers</a>

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