Watch These 5G Stocks For a Breakout

Chris Dios - October 18, 2019

NEW YORK, Oct 18, 2019 /TheStockDork/ — 5G Stocks are trending this morning, and some of the biggest players are in the news today. These stocks could be active today after these key news events.

Interested in telecom stocks? Check out our rankings for the best telecom stocks.

AT&T, Inc (NYSE: T )

AT&T is close to making a deal with Elliot Management and its stock is up on the news. A potential deal could allow Elliot to influence AT&T’s board decisions and review the company’s assets. Elliot wants AT&T to trim the fat and cut out “any assets that do not have a clear, strategic rationale” for holding.

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Elliot Management is pressuring AT&T to sell off its non-profitable assets.

DirecTV has been a loser for AT&T since it was acquired several years ago, and Elliot is pushing for the company to sell off the business. In all fairness, AT&T was exploring the sale of these underperforming assets before Elliot got involved, but the schedule seems to be accelerating. The Wall Street Journal reported that a deal could be reached before the end of the month.

AT&T is currently up 0.5% in early-day trading.

Verizon Communications (NYSE: VZ)

One of the most hyped technologies of recent memory, 5G is finally taking its first baby steps. Investors are ready to pounce on any hot 5G stocks, but will 5G be a winner for the telecom big boys?

In a report today from Barron’s, at least one analyst has his doubts. Moffett Nathanson analyst Craig Moffett is an expert in telecom stocks, and he’s not sure the national rollout will be profitable for large players like Verizon. Moffett believes 5G revenues won’t start rolling in as quickly as the market expects.

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5G has been a focal point in Verizon’s growth strategy. Above: Verizon CEO Hans Vestburg speaks at a company event.

“With most currently identified use cases of somewhat dubious merit, we do expect that getting to a dense and ubiquitous 5G network, and more importantly, a robust 5G ecosystem of networks and use cases, will take longer than people think.”

The article didn’t seem to hurt shareholder confidence. VZ is up 1.10% in early session trading.

Nokia (ADR: NOK)

Nokia announced that it will partner with Swedish wireless carrier Telia to power a new 5G network in the new Mall of Tripla shopping center in Helsinki, Finland.

Shoppers with compatible devices can access the 5G network with their devices. Nokia’s 5G base stations and small-cell technology supports the network. As 5G technology develops, the network could provide a solid framework for building the futuristic retail stores that can truly leverage the technology. 5G can power virtual fitting rooms, video recognition systems, cashless stores, and much more.

In a company press release, Nokia Head of Mobile Networks Product Management Ari Kynäslahti described the demand for 5G networks in malls. “We are seeing increased demand for better connectivity at shopping centers, stadiums and large events, which is why the 5G network rollout at the Mall of Tripla is a milestone for both Nokia and Telia.

Nokia is down 0.4% in early session trading

Ericsson (ADR: ERIC)

The Swedish 5G pioneer is expanding its partnership with Hydro-Québec, the Québec province’s largest electrical utility company.

Ericsson was already powering HQ’s network inventory management system but, under the terms of the agreement, they will overhaul the system to incorporate the latest technology. Once the upgrades are complete, the system will be more automated and efficient.

The new system will utilize Ericsson’s Adaptive Inventory and allow for the complete automation of many routine operations, helping HQ slim costs and better allocate resources. The aim of the agreement is to utilize the latest technology in the inventory system in order to maximize efficiency.

The Head of Ericsson Canada praised Hydro-Québec in a company press release, “Hydro-Québec is a leader in its field and we are grateful to extend our partnership to help them improve their ways of working, using our latest Adaptive Inventory product.

Erricsson is up 1.21% in early session trading.

Other News

Charle’s Schwab announced that it will begin offering fractional stock trading to its customers soon. The move is expected to help attract younger investors who have smaller portfolios to manage. Schwab recently cut its commission fees to zero, but the firm is turning up the heat on the competition again with this latest move.

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Chris Dios is an American writer and entrepreneur based in the Greater NYC area.

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