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More on Stifel's downgrades of AT&T (T -1.9%) and Verizon (VZ -2.4%): While expecting the...

More on Stifel's downgrades of AT&T (T -1.9%) and Verizon (VZ -2.4%): While expecting the carriers will continue to "dominate the U.S. telecom sector," analyst Christopher King expects margins to get hit by iPhone 5 sales, which should carry higher subsidies than sales of rival devices. King also suggests AT&T and Verizon "could be used as a near-term source of funds ... as the QE3/risk-on trade becomes more prevalent." (VZ CFO comments)
Comments (2)
  • Glen Bradford
    , contributor
    Comments (487) | Send Message
     
    "AT&T and Verizon "could be used as a near-term source of funds ... as the QE3/risk-on trade becomes more "

     

    intrinsic valuation driver? this is not related to intrinsic value at all.
    14 Sep 2012, 11:22 AM Reply Like
  • kmi
    , contributor
    Comments (3980) | Send Message
     
    "expects margins to get hit by iPhone 5 sales, which should carry higher subsidies than sales of rival devices."

     

    It's already been suggested that margins have encouraged telecoms to promote Android over the iPhone, and the implication in that statement is that this is a trend that may persist.
    14 Sep 2012, 01:33 PM Reply Like
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