Telecom Stock Roundup: AT&T-Google Team Up, Qualcomm Unveils XR & More
Zacks Investment Research | May 30, 2018 09:19PM ET
In the last five trading days, telecom stocks declined initially and traded flat thereafter only to decline further as concerns related to the U.S-China trade war resumed in a dramatic turn of events.
Last week, President Trump revealed that the U.S. administration reached a settlement on ZTE (HK:0763) as part of the ongoing trade talks between the two warring countries. This included a fine of $1.3 billion against ZTE, restructuring of its management and hiring of American compliance officers at the company. In return, the Commerce Department lifted the seven-year ban on the Chinese firm related to the purchase of components from U.S. manufacturers that threatened its survival and crippled operations.
Just when it appeared that things were working toward reducing the United States’ negative balance of trade against China, President Donald Trump flip-flopped on his trade policy and renewed threats to impose 25% tariffs on $50 billion worth of Chinese goods to retaliate against unfair trade practices. Some industry observers believe that the tactic is part of Trump’s broader plan to gain leverage in the trade talks as Commerce department secretary Wilbur Ross is scheduled to visit China later this week. However, the volte-face could derail the trade negotiations as China vouched to counter the move with similar restrictions.
Regarding company-specific news, improved product launches for superior connectivity and high-quality content to subscribers at lower cost of ownership, and technology collaborations ruled the roost over the last five trading days.
Recap of the Week’s Most Important Stories
1. CenturyLink (NYSE:CTL), Inc. (NYSE:T) recently secured the industry’s first certifications for alliance partners from Cisco Systems (NASDAQ:CSCO), Inc. related to its cloud and managed DNA services based on the Cisco Meraki platform. The accreditation validates the ability of CenturyLink to continually deliver the highest levels of performance on certification criteria.
CenturyLink’s Cisco Meraki solution facilitates enterprise customers to efficiently deploy and monitor Wi-Fi networks, wireless, phone, video surveillance and security services without compromising on security issues through a single administrative dashboard for an improved customer experience. (Read more: Zacks Investment Research
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