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Who games in a recession?

[Fiscalcliffjumper]

The Sunday Brief: How a recession brings out the best in telecom and tech

 

ByJim Patterson

July 11, 2022

Analyst Angle

 

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Greetings from Fraser, Colorado – the forever home of Byers Peak. We have enjoyed the shortened Fourth of July holiday week at 9,000 feet.  The scenes never get old. 

This week, after a brief market commentary/ earnings preview, we will chronicle the many telecom/ technology successes from the last recession and describe why we think that troubled times bring out the best in our industry. 

The fortnight that was

Editor’s note:  With the consolidation of the equity market tracking schedules, the 1-week and 2-week changes will now be shown in each Brief. 

The third quarter got off to a good start for the Fab Five, with each stock gaining value (group total +$430 billion).  Alphabet/ Google led the way (+$147 billion) and Apple was also strong (+$132 billion).  With over $2.3 trillion in market cap losses thus far in 2022, an up week was inevitable for the Fab Five.  Value sustainability will be better known after earnings outlooks later this month. 

The Telco Top Five was a bit weaker, with gains from the end of June given back last week.  T-Mobile continues to be strong (+$25 billion YTD), and AT&T (accounting for the WarnerMedia spin) has also returned positive value to shareholders in 2022.  It’s possible that after the 2Q earnings results are in, T-Mobile could be the second most valuable of the five stocks in this group as negative sentiment grows over the increasingly competitive home broadband environment.