|Bid||5.16 x 36200|
|Ask||5.18 x 317000|
|Day's Range||5.16 - 5.23|
|52 Week Range||4.71 - 6.65|
|Beta (3Y Monthly)||0.00|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.22 (4.28%)|
|1y Target Est||N/A|
(Bloomberg) -- The next generation of telecommunications technology could be the key to ending years of stagnation in the industry. But it’s also set to create a difficult dilemma for European phone companies.Carriers shelled out $80 billion to power the world’s antennas last year, according to Nokia Oyj. The prospect of having to raise spending on electricity – energy demand could triple with the introduction of 5G equipment, according to industry body GSMA – won’t sit well with phone companies that are already struggling to pay their dividends. At the same time, firms such as BT Group Plc and Vodafone Group Plc have pledged to slash emissions, and that will require a rapid shift to renewable energy.Just as carriers are about to roll out vast quantities of power-hungry gear, they’re also promising to save the planet. And funds are tight. Accomplishing everything at the same time could be a tall order.“If they have set up ambitious targets for overall power consumption and CO2 emissions, those could potentially be in conflict when they start to roll out 5G,” said Jerker Berglund, industry consultant at JB Sustainable Approach AB. “Reducing total power consumption is going to be a challenge.”5G could unleash a 1,000-fold jump in data demand for connecting factories and cars and supercharging mobile devices, according to the GSMA. That’s an irresistible sales prospect for a telecom industry whose revenues have yet to recover from a slump that started in 2015.Next-generation antennas and masts can be 10 times more energy efficient than 4G’s. However, these power savings could get swamped by the surge in demand for new applications. 5G will link up billions of things that have never been connected before. To accommodate all these new connections, masts might have as many as 128 antennas, versus just four or eight on a typical 4G mast. Bouncing signals through cities may require thousands of transmitters and receivers to be bolted onto rooftops and street furniture. This looks like it will all require a lot more bandwidth, and a lot more power.What’s more, carriers can’t afford the cost of swapping out all their equipment at once, Berglund said. The rollout will have to happen gradually, so many masts will still carry less efficient 4G, 3G and 2G antennas alongside 5G ones. This situation could last for years – some 3G kit is still in place 18 years after that technology was introduced.This article is part of Covering Climate Now, a global collaboration of more than 250 news outlets to highlight the climate change story.Electricity already makes up about a third of carriers’ average operational costs, according to Nokia, and raising this will pressure balance sheets when the industry isn’t in a good place to cope. Vodafone has cut its dividend to conserve cash to pay for spectrum and capital investment. Bank of America Merrill Lynch analysts said Monday they expect BT to slash its dividend by as much as 40% to fund capital expenditure and price cuts.“As we consume more, power’s going up, and the industry is trying to bring that down as much as possible,” said Henry Calvert, head of future networks at the GSMA, the mobile industry trade body. “There’s a lot of activity in the industry about making the power we use more efficient.”But whatever fixes carriers make to lower energy bills – sharing networks, getting masts to autonomously power down at times of low data demand, introducing “beam-forming’’ so smart antennas can pinpoint devices instead of pumping out data indiscriminately – the surge in power usage creates a challenge for meeting emissions goals.Deutsche Telekom AG, for example, pledged a 90% reduction in carbon emissions between 2017 and 2030. In total, European carriers will have to reduce carbon dioxide emissions by 6 million metric tons within 11 years to achieve their carbon targets, BloombergNEF analyst Kyle Harrison said in a research note.One solution is for the telecom companies to shift their power supply to renewables, but this can’t be done at the flick of a switch. Clean-energy contracts are complicated and can take years to negotiate.Carriers will be under pressure to sign new ones quickly to cope with 5G’s power demands, Harrison said. They’ll be vulnerable to striking bad deals, and price fluctuations in energy markets can turn some arrangements that initially look good into losers in the longer term. “The switch to 5G is going to put more pressure on telecoms to purchase clean energy and reduce their emissions,” he said. “Many clean energy deals can result in losses for corporations. Telecoms will need to put extra consideration into this as their power demand goes up, especially if losses will impact their investments into 5G.”To contact the author of this story: Thomas Seal in London at email@example.comTo contact the editor responsible for this story: Jennifer Ryan at firstname.lastname@example.orgFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
In addition to improving operational efficiency, Ericsson (ERIC) will augment the network capabilities of Next-Tech Wireless for seamless IoT applications and other potential future services.
As part of Mcity's leadership circle, Verizon (VZ) is actively developing various 5G solutions designed to increase pedestrian safety and avoid car accidents.
As a new Microsoft Azure ExpressRoute partner, Viasat's (VSAT) Direct Cloud Connect service will likely enable its business customers to optimize their network infrastructure and cloud investments.
The additional funding underscores that U.S. Army continues to trust Comtech (CMTL) as a preferred service provider for its deployed soldiers.
The "co-build, co-share" framework agreement between China Telecom (CHA) and China Unicom (CHU) is likely to foster a congenial environment for faster deployment of 5G networks through apportioned infrastructure investments.
Qualcomm (QCOM) envisions a huge revenue-generating potential in low-priced 5G chipsets and aims to expand its product portfolio to cater to the various customer segments.
Strong competitive position and market share gains on the back of technology leadership and diversified customer base in high-growth markets drive Ciena's (CIEN) fiscal third-quarter results.
After a solid earnings announcement for the second quarter announced July 29, Nokia (NYSE:NOK) shares enjoyed a brief rally, trading up to around $5.69. But since then, enthusiasm has leveled off, with NOK stock trading sideways for some weeks at around the $5.10 to $5.18 level before falling off even further.Source: RistoH / Shutterstock.com The August doldrums have wound down. Much of the fear of a trade war with China is priced into markets. For investors looking for a sleeping giant in telecoms, Nokia may be just the bet.Here are three key reasons why Nokia may outperform in the next telecom sector rally:InvestorPlace - Stock Market News, Stock Advice & Trading Tips NOK Is Ready to Rocket With 5GThe upcoming next-gen standard for mobile telecommunications service, 5G, will deliver significantly faster speed than today's 4G technology. 5G will allow users to browse data-intensive websites, such as Alphabet's (NASDAQ:GOOG, NASDAQ:GOOGL) YouTube, upload or download videos and use data-intensive apps. 5G can also deliver virtual reality much more quickly than the current 4G system. * 7 Best Tech Stocks to Buy Right Now In the U.S., Verizon (NYSE:VZ) and AT&T (NYSE:T) will likely be the first to offer 5G speeds. In fact, Verizon is already claiming that its 5G technology will probably deliver speeds 200 times faster than many of its 4G LTE users get now. Globally, Vodafone (NASDAQ:VOD) will likely be the market leader in Europe.The market for 5G will likely not take off until 2020. But when it does, users across the globe will need a brand new 5G standard smartphone. Carriers will sink billions into new 5G equipment. And Nokia will be positioned front and center in offering the new hardware across the globe. * 10 Stocks to Own Through a Global Recession According to Chief Executive Officer Rajeev Suri speaking to Bloomberg, "Nokia is winning contracts quite handsomely in new 5G telecom networks as the top three suppliers go head-to-head for the emerging business." He added, "We compete quite favorably with Huawei, with or without the current security concerns," Suri said referring to Huawei Technologies, the world's largest network equipment manufacturer.The market is now keenly focused on how far Nokia will pounce on 5G once the new standard introduced onto the global market. "Only Huawei and Nokia have full end-to-end product portfolios with wireless, fixed networks, and IP routing solutions, positioning Nokia for leadership with the top carriers as networks transition to 5G," according to Michael Walkley, telecom analyst at Canaccord Research. "[W]ith Huawei still potentially banned from certain markets, we view Nokia as the only global supplier with an end-to-end solution, as evidenced by leading global carriers choosing Nokia as a partner for 5G". Tight Financial ManagementThe history of technology paradigm shifts is filled with examples of companies throwing billions in capital down a black hole -- only to face far more competition in the market and far less revenues than expected. NOK is undoubtedly spending heavily on building their 5G market lead -- but with a certain degree of prudence.In the last earnings call, Nokia's CFO, Kristian Pullola, explained that they expect their most recent cost-savings program to result in a nearly $800 million reduction in recurring operating expenses and production overheads in 2020. So while NOK will make the massive capital investment necessary to win in the new 5G market, they are certainly keenly aware of past spending black holes -- and are already implementing tight financial controls. Strong Guidance for 2020NOK has managed to meet or beat analysts' estimates in for of the last five quarters. For their latest earnings call in July, NOK sounded more confident than ever that they will grow their critical metrics across the board for 2020. Full-year revenues are estimated to move into the positive territory up to 40 cents to 46 cents EPS. NOK also expects operating margin increasing from the 9-15% estimated this year up to 12 to 16% in 2020. * 7 Internet of Things Stocks to Buy Now "Our expectation is that we will outperform our primary market in full-year 2019 and over the longer term, driven by our strategy, which includes competing in 5G more effectively due to our strong end to end portfolio, focusing on targeted growth opportunities in attractive adjacent markets and building a strong network agnostic software business," said Rajeev Suri, Nokia's president and CEO.Most telecom and tech stocks have had a rough ride over the summer, and are now tending to trade sideways. When the investing season starts to heat up in September, the sideways trend for NOK stock could turn decidedly bullish -- and even more so after their third-quarter earnings call in October.As of this writing, Theodore Kim did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Retail Stocks to Buy on the Dip * 7 Marijuana Stocks With Critical Levels to Watch * 7 Internet of Things Stocks to Buy Now The post Nokia Stock Looks Ready to Rock With 5G appeared first on InvestorPlace.
China Telecom (CHA) is aiming to capitalize on the wide proliferation of crypto currency and fast deployment of 5G technology across the globe.
Huawei, the Chinese telecoms giant, on Tuesday said the U.S. has launched cyber attacks against it to infiltrate intranet and internal information systems as it denied a series of allegations. Huawei also denied allegations in a report in the Wall Street Journal that it stole smartphone-camera patents. "The fact remains that none of Huawei's core technology has been the subject of any criminal case brought against the company, and none of the accusations levied by the U.S. government have been supported with sufficient evidence. We strongly condemn the malign, concerted effort by the U.S. government to discredit Huawei and curb its leadership position in the industry," the company said in a statement.
Viasat (VSAT) delivers a cost-effective, scalable and interoperable technology required to support mission demands and help NATO warfighters maintain communication at the tactical edge.
Does the August share price for Nokia Corporation (HEL:NOKIA) reflect what it's really worth? Today, we will estimate...
Today we've highlighted 10 stocks that are currently trading for under $20 per share that investors might want to buy heading into September...
Sprint's (S) True Mobile 5G service is currently live in parts of nine major markets, including Los Angeles, New York City, Phoenix and Washington, DC.
Cisco (NASDAQ:CSCO) has had a tough August. Shares are down over 17% in the past month, from an open of $56.69 on July 29 to $47.10 at the close Aug. 26. The earnings release on Aug. 15 met analyst expectations. But with next-quarter guidance projecting minimal growth, investors are having second thoughts on the future of CSCO stock.Source: Ken Wolter / Shutterstock.com With this in mind, is CSCO a buy? The stock trades at a fair valuation. But with geopolitical risks like the U.S.-China trade war and anticipated declines in share buybacks, it may be tough to find upside. Let's take a closer look at the present and future performance of Cisco stock. A Closer Look at Cisco StockAs mentioned above, CSCO announced earnings on Aug. 15. Sales for the quarter ending July 27 were up 6% year-over-year, with full-year revenue up 7% from the prior fiscal year. Revenue growth was driven by the company's Security (up 14%), Applications (up 11%) and Infrastructure (up 6%) units. Software-as-a-service style software subscriptions now make up 70% of total software revenue. But the company does not anticipate high growth in the next quarter. CSCO projects 0%-2% year-over-year revenue growth and earnings per share between $0.64-$0.69.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHow about the elephant in the room (the U.S.-China trade war)? Sales in China were down 25%. As the trade war continues to accelerate, revenue decline could continue. Any year-over-year decline in total revenue would materially impact Cisco stock. * 10 Companies Using AI to Grow In light of this, what positive catalysts are in the pipeline for CSCO stock? CSCO recently concluded a buyback plan initiated back in FY18. During that time frame, the company bought back $32.6 billion worth of Cisco stock. The company plans to continue to return capital to shareholders, albeit with a lower level of buybacks. The company plans to devote at least 50% of free cash flow to both share buybacks and dividends. Net of capital expenditures, the company has up to $14.9 billion a year in cash flow. Subtracting $6 billion per year in dividends, this leaves about $8.9 billion max for buybacks. Can Acquisitions Help CSCO Move the Needle?CSCO has $33.4 billion in cash on hand. With the company stepping off the gas pedal for buybacks, acquisitions could be their key to growth. The company announced a deal to buy Acacia Communications (NASDAQ:ACIA) in July. As InvestorPlace's James Brumley discussed Aug. 1, this proposed $2.6 billion deal solidifies CSCO as a 5G hardware supplier. Acacia's products help facilitate long-distance transfer of massive data loads.Once 5G reaches critical mass, CSCO will be in the thick of it, supplying hardware to keep the data flowing across the globe.CSCO has made additional bolt-on deals since 2018. As Brumley discussed, the company has acquired Sentryo, Singularity Networks and six other companies. These bolt-on deals take just a few billion, tops, to execute, leaving plenty of runway for CSCO to grow via mergers and acquisitions. But does the current Cisco stock valuation price in this opportunity?Let's take a look at how the stock's valuation stacks up to peers. Cisco Stock Is Undervalued to PeersCSCO stock currently trades at a forward price-to-earnings ratio of 13.1. The company's current enterprise value/EBITDA ratio is 11.7. Here are the current valuation ratios of some of CSCO's closest peers: * Ciena (NYSE:CIEN): forward P/E of 16, EV/EBITDA of 13.4 * Motorola (NYSE:MSI): forward P/E of 20.1, EV/EBITDA of 17.3 * Nokia (NYSE:NOK): forward P/E of 12, EV/EBITDA of 9.5 * LM Ericsson (NASDAQ:ERIC): forward P/E of 15.8, EV/EBITDA of 11.1On a P/E basis, CSCO stock trades at a discount to the aforementioned peers. On an EV/EBITDA basis, Cisco stock trades in line with its larger peers NOK and ERIC. I believe this is a fair valuation for CSCO stock. While the company could jump start growth via its bolt-on acquisitions, the company's weak short-term guidance is a concern. Coupled with the China risk, I can see CSCO stock falling further. Other legacy tech companies such as Intel (NASDAQ:INTC) and International Business Machine (NYSE:IBM) trade at forward P/E ratios around 10. I could easily see CSCO stock fall to that valuation level. The Bottom Line on Cisco StockThe China situation has taken a toll on Cisco stock. The company's China operations are just a small part of the business. But if sales continue to fall, the company will have a hard time even meeting its low-ball guidance next quarter. Relative to peers, Cisco stock trades at a fair valuation. But with the growth issues, I can easily see CSCO stock start to trade at a lower valuation.So what's the bottom line? Investors should wait out the China situation. Additional Chinese sales declines could push the stock further down. But long term, the company's mergers and acquisitions strategy could help resurrect growth as 5G becomes the standard. Wait for the trade war to reach its nadir before entering CSCO stock.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Companies Using AI to Grow * The 10 Biggest Winners From Second-Quarter Earnings * 7 Marijuana Penny Stocks to Consider for Those Who Can Handle Risk The post Wait for the Trade War to Play Out Before Buying Cisco Stock appeared first on InvestorPlace.