AT&T, Verizon Stocks Tumble
Craig Moffett thinks Wall Street's overconfident in telcos
Sanford Bernstein analyst Craig Moffett, who has recently shown he's no fan of network upgrades in general
and Verizon FiOS specifically, single-handedly sent AT&T and Verizon stocks tumbling today by proclaiming
that Wall Street was overestimating the ability of AT&T and Verizon to weather a steep recession. "AT&T and Verizon may indeed be somewhat more recession-resistant than most businesses," Moffett wrote in a sixty page note to clients. "But we believe they are nevertheless much more cyclically exposed than consensus estimates (and valuations) would suggest."
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Moffett is an idiot.
AT&T is screwed long-term because it's wireline business is dying and it refuses to make the needed investments in fiber. Wireless is what AT&T's future depends on.
VZ, on the other hand is pretty well set long term but may take a few hits from idiotic "analysts" like this moffett fool who can't see past the next dividend check.
I'd go long on VZ. Buy and hold. Short T.
Am I the only one
Who thinks this guy is a complete idiot?