Why Verizon, AT&T, and T-Mobile Stocks All Bounced Back Today
Good news for investors: Telecom stocks aren't as expensive as you might think.
Telecom stocks were in a funk earlier this week, with shares of Verizon (NYSE: VZ), AT&T (NYSE: T), and T-Mobile (NASDAQ: TMUS) all tumbling on Tuesday, after comments from Verizon chief revenue officer Frank Boulben, given at a Deutsche Bank Media, Internet & Telecom Conference, caused telecommunications sectors to freak out just a little bit.
Given a few days to digest the news, however, investors seem to have concluded today that things aren't quite as bleak as they seem. As of 11 a.m. ET, all three stocks are bouncing back, with Verizon gaining 1.8%, AT&T up 1.9%, and T-Mobile doing best of all with a 2.5% gain.
As Reuters reported Tuesday, Verizon exec Boulben commented that Verizon is trying to ratchet back promotional activity to shore up its profits, but some of its rivals are going in the other direction, leading to "elevated ... competitive intensity" and more price competition in the sector (read: a price war).
