iShares U.S. Telecommunications ETF (BATS: IYZ)

Dernières nouvelles pour iShares U.S. Telecommunications ETF (BATS:IYZ)

iShares U.S. Telecommunications ETF

Communication Services

Technology

The Fund seeks to track the investment results of the Russell 1000 Telecommunications RIC 22.5/45 Capped Index (the Underlying Index), which measures the performance of the telecommunications sector of the U.S. equity market, as defined by FTSE Russell (the Index Provider or Russell). The Underlying Index will include large- and mid-capitalization companies.

Cisco Systems, Inc.

Verizon Communications Inc

Comcast Corp Cl

Charter Communications Inc-A Sedol Bz6Vt82

Ubiquiti Networks Inc.

AT&T, Inc.

Liberty Broadbd C

Frontier Communications Corp

T-Mobile Usa Inc Esrw Usd Npv Ref Sm#585558

Arista Networks Inc.

Ciena Corp

Iridium Communications Inc

Roku Inc.

Motorola Solutions Inc.

iShares US Telecommunications ETF

AT&amp;T Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) shares are trading<a href="https://www.benzinga.com/movers" target="_blank" rel="noreferrer noopener"> nearly flat on Friday.</a>
The company reportedly plans to reduce its monthly autopay discount for some customers.
Starting April 24, customers enrolled in the autopay and paperless billing program using eligible debit cards will see a reduction in their discount from $10 to $5, USA Today <a target="_blank" href="https://www.usatoday.com/story/money/2025/03/27/att-autopay-discounts-cuts-save/82689187007/" rel="noreferrer noopener">reports</a>.
Additionally, those enrolled with any non-AT&amp;T Points Plus credit card will no longer receive the discount.
Meanwhile, customers using a bank account for autopay will continue to receive the $10 discount on eligible internet plans and a $10 discount per phone line for eligible wireless plans.
This move follows similar actions by AT&amp;T's competitors, T-Mobile US, Inc. and Verizon Communications Inc., signaling a broader industry trend.
Also Read: <a target="_blank" href="https://www.benzinga.com/economics/macro-economic-events/25/03/44535109/feds-favorite-inflation-gauge-rises-more-than-expected-in-february-casting-doubt-on-near-term-rate-cuts" rel="noreferrer noopener">Fed&#8217;s Favorite Inflation Gauge Rises More Than Expected In February, Casting Doubt On Near-Term Rate Cuts</a>
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, T stock has gained over 60% in the past year. Investors can gain exposure to the stock via iShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) and&nbsp;WBI Power Factor High Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WBIY#NYSE">WBIY</a>).
On the financial front, AT&amp;T recently said that it remains on track to meet its 2025 targets, reaffirming its<a target="_blank" href="https://www.benzinga.com/news/guidance/25/03/44242274/att-confirms-2025-targets-cash-flow-strength-and-debt-reduction-plan-details" rel="noreferrer noopener"> FY25 adjusted EPS guidance of $1.97 to $2.07.</a>
The company also expects to report a first-quarter adjusted EPS of approximately $0.48 or higher, aligning with or exceeding last year's first-quarter performance (excluding DIRECTV).
Additionally, AT&amp;T projects a free cash flow of over $16 billion for the year, with around $2.8 billion expected for the first quarter.
As part of its strategic plan, AT&amp;T continues to make progress on the sale of its 70% stake in DIRECTV, with a planned closing by mid-2025. This transaction is expected to generate $5.4 billion in after-tax proceeds in 2025.
Earlier this month, AT&amp;T also said it continues to focus on improving its leverage, targeting a net-debt-to-adjusted EBITDA ratio of 2.5x by mid-2025.
Price Action: T stock is up 0.02% at $28.21 at last check Friday.
Read Next:
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</ul>
Photo via Shutterstock.

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iShares Dow Jones US Telecommunications Sector Index Fund

TMUS

WBIY

What's Going On With AT&T Stock Today?

The future of telecommunications is now and investors are paying attention. With NVIDIA&#8217;s recent foray into AI-native 6G networks, the world is changing fast and there are huge opportunities for <a href="https://www.benzinga.com/etfs">telecom, AI, and semiconductor ETFs</a>.
Defiance ETFs CEO Sylvia Jablonski thinks this revolution is only just starting. &#8220;Telecom companies that want to stay competitive will need to invest in AI-powered networks, partner with AI tech leaders and upgrade to cutting-edge semiconductor technology. That's exactly why we built the Defiance Connective Technologies ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SIXG#NASDAQ">SIXG</a>) to capture this AI-driven telecom revolution,&#8221; she told Benzinga.
Nvidia Corp.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) new <a href="https://nvidianews.nvidia.com/news/nvidia-and-telecom-industry-leaders-to-develop-ai-native-wireless-networks-for-6g">deals </a>with T-Mobile Us Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TMUS#NASDAQ">TMUS</a>), MITRE, Cisco Systems Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>), ODC, and Booz Allen Hamilton Holding Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BAH#NYSE">BAH</a>) that were announced in the GTC 2025 are a significant step forward in AI-powered telecommunications. Nvidia is taking the lead in the deployment of AI in wireless network hardware, software and infrastructure, paving the way for new-gen connectivity.
For investors, this transition offers attractive opportunities. The need for AI-driven networking chips, cloud computing infrastructure, telecom software and cybersecurity is likely going to boom. Broadcom Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AVGO#NASDAQ">AVGO</a>), Marvell Technology Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MRVL#NASDAQ">MRVL</a>), Qualcomm Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QCOM#NASDAQ">QCOM</a>), Amazon.com Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMZN#NASDAQ">AMZN</a>) AWS, Alphabet Inc.&#8217;s (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOG#NASDAQ">GOOG</a>)(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/GOOGL#NASDAQ">GOOGL</a>) Google Cloud, Oracle Corp (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ORCL#NASDAQ">ORCL</a>), Cisco Systems, Ericsson and Nokia Oyj (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOK#NYSE">NOK</a>) are likely to gain. Naturally, ETFs holding stocks of these companies are seeing an upside potential, too.
Also Read: <a href="https://www.benzinga.com/25/03/44418376/is-nvidia-sitting-on-the-ai-goldmine-no-one-sees-yet">Is Nvidia Sitting On The AI Goldmine No One Sees Yet?</a>
<h1 class="wp-block-heading">ETFs That Stand To Gain</h1>
Jablonski points out that ETFs such as Defiance Connective Technologies provide exposure to these leaders, enabling investors to be part of the revolution in telecom networks.
Outside of that ETF, a number of other ETFs stand to gain from Nvidia&#8217;s and the telecom sector&#8217;s AI-led transformation:
• Global X Artificial Intelligence &amp; Technology ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AIQ#NASDAQ">AIQ</a>) targets AI-led innovation across sectors, such as cloud computing and telecommunications. 
• VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>) contains top semiconductor players such as Nvidia, Broadcom and Qualcomm that form the backbone of AI-driven networking. 
• iShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) offers exposure to large telecom companies such as Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) and T-Mobile. 
• ARK Autonomous Technology &amp; Robotics ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/ARKQ#BATS">ARKQ</a>) contains firms utilizing AI-based connectivity for automation and future mobility. 
• First Trust Nasdaq Cybersecurity ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CIBR#NASDAQ">CIBR</a>) also covers cybersecurity companies such as Palo Alto Networks Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PANW#NASDAQ">PANW</a>) and CrowdStrike Holdings Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>), which will be instrumental in protecting <a href="https://www.crowdstrike.com/platform/">AI-native</a> 6G <a href="https://www.paloaltonetworks.com/blog/2024/11/a-security-first-approach-to-6g/#:~:text=Next%20Steps,development%20and%20deployment%20of%206G.">networks</a>.
The actual impact of AI-enabled 6G is much greater than the telecommunications sector. From health and finance to manufacturing and self-driving cars, AI-enhanced networks will bring efficiency, security and performance to many different industries. 
Jablonski noted, &#8220;AI-integrated telecom networks will boost productivity and connectivity across several industries: healthcare – enabling remote surgeries, real-time diagnostics and telemedicine; finance, strengthening cybersecurity for transactions and real-time market analysis; manufacturing, enhancing automation and predictive maintenance and autonomous vehicles, powering AI-native Vehicle-to-Everything (V2X) communication.&#8221;
The financial benefit won&#8217;t directly touch consumers&#8217; wallets. &#8220;In the short term, telecom companies will likely use AI-driven efficiency to increase their profits as they recover infrastructure investment costs. Over time, as AI optimizes network operations, consumers could see more competitive pricing and improved services — similar to how cloud services have evolved.&#8221; 
In the long run, with AI optimizing network operations, customers may experience more competitive rates and better services.
But, AI-driven networks may create a divide between telecom and tech giants. &#8220;Companies like AWS, Google Cloud and Microsoft Azure are expanding into telecom with AI-driven cloud services. Traditional telecom providers that fail to adapt may struggle to compete with these tech-driven companies,&#8221; she noted.
Nvidia&#8217;s AI-native 6G project is a game-changer and the investment environment is changing rapidly. With partnerships that range from telecom behemoths to cloud and cybersecurity companies, the argument for ETFs such as Defiance Connective Technologies ETF and Defiance Quantum ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QTUM#NASDAQ">QTUM</a>) has never been more compelling. As AI-powered networks redefine connectivity, investors can seize the opportunity to ride the future of telecommunications technology.
Read Next: • <a href="https://www.benzinga.com/25/03/44406384/alphabets-mega-cybersecurity-bet-3-etfs-poised-for-a-jackpot">Alphabet Bets Big On Cybersecurity: 3 ETFs Poised For A Jackpot</a>
Photo: Shutterstock

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Exclusives

ETFs

AMZN

ARKQ

AVGO

CIBR

CRWD

CSCO

GOOG

GOOGL

MRVL

NVDA

ORCL

PANW

QCOM

QTUM

SIXG

EXCLUSIVE: Why Defiance ETF CEO Sees Big Gains Ahead During Nvidia's 6G Revolution

Verizon Communications Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) disclosed the launch of GenAI Assistant for small <a target="_blank" href="https://www.benzinga.com/pressreleases/25/03/g44375891/verizon-business-launches-industry-first-genai-assistant-for-small-businesses" rel="noreferrer noopener">businesses, Verizon Business Assistant</a>.
Verizon Business Assistant helps automate customer interactions and boost engagement by providing instant responses to frequently asked questions, continuously learning and improving, and enabling faster, more efficient customer service.
Read: <a target="_blank" href="https://www.benzinga.com/25/03/44143177/verizon-partners-with-singtel-and-skylo-to-expand-iot-services-globally" rel="noreferrer noopener">Verizon Partners With Singtel And Skylo To Expand IoT Services Globally</a>
Iris Meijer, Chief Product &amp; Marketing Officer, Verizon Business said, &#8221;It also addresses an increasing customer demand &#8211; particularly from younger generations &#8211; for easy digital tools to communicate with businesses on simple matters. This allows small business owners to focus on growing their business while ensuring their customers feel valued and connected to the business.&#8221;
In a separate release, Verizon disclosed a multi-year partnership with Santander Bank to offer millions of Verizon mobile and 5G Home customers <a target="_blank" href="https://www.benzinga.com/pressreleases/25/03/b44374166/verizon-santander-bank-partner-to-bring-openbanks-digital-banking-experience-to-verizon-customers" rel="noreferrer noopener">a new high-yield savings account</a>.
Verizon + Openbank Savings offers a digital savings account with a rate 10 times the national average, plus the opportunity to save up to $180 annually on the Verizon bill.
Earlier this month, Verizon&nbsp;and Accenture&nbsp;announced a collaboration to accelerate&nbsp;advanced cybersecurity solutions. The deal aims to help businesses of all sizes mitigate growing threats, from data breaches to <a target="_blank" href="https://www.benzinga.com/25/03/44083704/verizon-and-accenture-partner-to-expand-cybersecurity-services-and-strengthen-business-protections" rel="noreferrer noopener">phishing attacks to social engineering</a>.
Investors can gain exposure to VZ via&nbsp;iShares U.S. Telecommunications ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) and&nbsp;Invesco Dow Jones Industrial Average Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DJD#NYSE">DJD</a>).
Price Action: VZ shares are up 0.84% at $44.02 at the last check Tuesday.
Read Next:
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</ul>
Image via Shutterstock.

Large Cap

Verizon Unveils GenAI-Powered Text Messaging Solution For Small Businesses: Details

Cisco Systems, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>) is preparing to introduce new <a href="https://www.benzinga.com/topic/artificial-intelligence">artificial intelligence-powered solutions</a>.
What Happened: The company is rolling out updates. The goal is to improve workflows in AI Assistant for Webex Suite and simplify employee interactions with Webex Calling Customer Assist and AirPlay on Cisco Devices for Microsoft Teams Rooms.
With updates to the Cisco AI Assistant for Webex Contact Center and the availability of Webex AI Agent, Cisco is transforming contact centers into customer experience hubs.
New solutions for end users and IT teams include Webex Calling Customer Assist, enhanced features in Webex Control Hub, and new workflow automation capabilities for the Cisco AI Assistant for Webex.
See Also: <a href="https://www.benzinga.com/economics/macro-economic-events/25/03/44357674/restaurant-sales-sink-recession-warning-or-just-weather-driven-dip">Restaurant Sales Sink: Recession Warning Or Just Weather-Driven Dip?</a>
Why It Matters: The Cisco AI Assistant for Webex Contact Center, with new features like suggested responses and real-time transcription arriving in the second quarter of 2025, enhances both agent efficiency and customer experience.
The product enhances efficiency by integrating with enterprise apps like Salesforce, ServiceNow, and Jira, enabling users to complete tasks faster and automatically share meeting summaries.
Investors can gain exposure to the stock via&nbsp;iShares U.S. Telecommunications ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) and&nbsp;First Trust NASDAQ Cybersecurity ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CIBR#NASDAQ">CIBR</a>).
Price Action: Cisco shares are up 1.39% at $60.66 premarket at the last check Monday
Read Next:
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<li><a href="https://www.benzinga.com/25/03/44353699/niu-q4-rides-high-on-demand-for-e-scooters-but-gross-margins-decline-amid-higher-costs" target="_blank" rel="noreferrer noopener">Niu Q4 Rides High On Demand For E-Scooters, But Gross Margins Decline Amid Higher Costs</a></li>
</ul>
Image: Shutterstock

Contracts

Cisco Unveils AI-Powered Solutions With Webex AI Agent

On Monday, AT&amp;T Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) confirmed it is on track to meet its 2025 financial targets and <a target="_blank" href="https://www.benzinga.com/pressreleases/25/03/n44235833/pascal-desroches-to-update-shareholders-at-deutsche-bank-media-internet-telecom-conference-on-marc" rel="noreferrer noopener">execute its long-term strategic plan</a>.
The company reiterated FY25 adjusted EPS guidance of $1.97 to $2.07 (vs. consensus of $2.04) and first-quarter adjusted EPS of around $0.48, or higher <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">(vs. street view of $0.49)</a>.
This implies that the first quarter of 2025 adjusted EPS will be in line with or better than the prior year's first quarter, excluding DIRECTV.
AT&amp;T maintains its full-year outlook of free cash flow of over $16 billion and sees around $2.8 billion or more for the first quarter. This aligns with or exceeds first-quarter 2024 levels, excluding DIRECTV.
Also, the company anticipates to receive cash payments of $1.4 to $1.5 billion from DIRECTV in first quarter as part of its agreement to sell its 70% stake in DIRECTV to TPG.
AT&amp;T targets closing the transaction by mid-2025, generating total after-tax cash proceeds of $5.4 billion in 2025, along with $500 million in 2029.
In the first quarter, AT&amp;T also secured over $850 million in cash proceeds from a structured real estate sale-leaseback with Reign Capital.
AT&amp;T remains on track to achieve its net leverage target of net-debt-to-adjusted EBITDA in the 2.5x range by the first half of 2025 and intends to sustain this level through 2027.
This month, AT&amp;T outlined its multi-year strategy to generate over $50 billion in financial capacity within the next three years, <a target="_blank" href="https://www.benzinga.com/pressreleases/25/03/n44126249/john-stankey-updates-shareholders-at-morgan-stanley-technology-media-telecom-conference-on-march-4" rel="noreferrer noopener">driven primarily by organic growth</a>.
In January, the company reported&nbsp;fourth-quarter 2024&nbsp;operating revenues of $32.30 billion, beating the&nbsp;analyst consensus estimate of $32.04 billion and adjusted EPS of $0.54 <a target="_blank" href="https://www.benzinga.com/25/01/43230968/att-q4-earnings-307k-fiber-adds-projects-mid-teens-broadband-growth-in-2025" rel="noreferrer noopener">exceeded the&nbsp;estimate of $0.50</a>.
Investors can gain exposure to the stock via iShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) and WBI Power Factor High Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WBIY#NYSE">WBIY</a>).
Price Action: T shares are down 0.95% at $27.02 premarket at the last check Tuesday.
Read Next:
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<li><a href="https://www.benzinga.com/25/03/44083704/verizon-and-accenture-partner-to-expand-cybersecurity-services-and-strengthen-business-protections" target="_blank" rel="noreferrer noopener">Verizon and Accenture Partner to Expand Cybersecurity Services and Strengthen Business Protections</a></li>
</ul>
Photo via Shutterstock.

Guidance

AT&T Confirms 2025 Targets, Cash Flow Strength And Debt Reduction Plan: Details

AT&amp;T Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) is extending its multi-year partnership with Nokia Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NOK#NYSE">NOK</a>) to enhance its voice core network.
This agreement <a target="_blank" href="https://www.globenewswire.com/news-release/2025/02/04/3020004/0/en/AT-T-extends-voice-core-relationship-with-Nokia-to-drive-new-services-faster-deployment-times-and-operational-efficiencies.html#:~:text=Espoo%2C%20Finland%20%E2%80%93%20AT%26T%20is%20extending,deployment%20times%2C%20and%20operational%20efficiencies." rel="noreferrer noopener">will </a>help AT&amp;T advance its goal of delivering secure, customer-centric networks with improved automation, enabling new services, faster deployments, and greater operational efficiency.
AT&amp;T is upgrading its existing Nokia IMS Voice Core to support Voice over New Radio (VoNR).
The enhanced IMS Voice Core features a fully cloud-native architecture, allowing for flexible scaling and increased automation.
AT&amp;T will leverage Nokia&#8217;s voice core applications via the Nokia Cloud Platform (NCP) to optimize network operations, enhance automation, and reduce manual processes.
NCP aligns with Nokia&#8217;s multi-cloud strategy, offering operators flexible infrastructure options.
Additionally, AT&amp;T will implement Nokia&#8217;s Digital Operations software, which supports multi-vendor networks, to automate the design, delivery, and assurance of customer services at scale.
Read: <a target="_blank" href="https://www.benzinga.com/analyst-ratings/analyst-color/25/01/43247627/atts-subscriber-momentum-and-de-risked-fundamentals-drive-optimism-goldman-sachs-analyst" rel="noreferrer noopener">AT&amp;T&#8217;s Subscriber Momentum And De-Risked Fundamentals Drive Optimism: Goldman Sachs Analyst</a>
Raghav Sahgal, President of Cloud and Network Services at Nokia, added,&nbsp;&#8220;As a long-time collaborator with AT&amp;T, Nokia fully understands the important journey AT&amp;T is on to enhance automation, reduce complexity, decrease deployment times, and perform operational workflows faster to better serve its customers, and glean more value from its network.&#8221;
Last month, AT&amp;T reported&nbsp;fourth-quarter 2024&nbsp;operating revenues of $32.30 billion, the&nbsp;analyst consensus estimate of $32.04 billion and adjusted EPS of $0.54 <a target="_blank" href="https://www.benzinga.com/25/01/43230968/att-q4-earnings-307k-fiber-adds-projects-mid-teens-broadband-growth-in-2025" rel="noreferrer noopener">beat&nbsp;the&nbsp;estimate of $0.50</a>.
Investors can gain exposure to AT&amp;T via&nbsp;iShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) and WBI Power Factor High Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WBIY#NYSE">WBIY</a>).
Price Action: T shares are down 0.08% at $24.23 premarket at the last check Tuesday.
Read Next:
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<li><a href="https://www.benzinga.com/25/01/43346788/telecom-etfs-gain-momentum-as-sector-delivers-strong-q4-earnings" target="_blank" rel="noreferrer noopener">Telecom ETFs Gain Momentum As Sector Giants AT&amp;T, Verizon, T-Mobile Reinforce Investor Confidence</a></li>
</ul>
Photo via Shutterstock.

AT&T Leverages Nokia Cloud Platform To Modernize IMS Voice Core

The U.S. telecom sector has delivered a robust performance over the past year, outpacing broader market gains. The S&amp;P Telecom Select Industry Index surged around 37% over the past year, significantly outperforming the <a href="https://www.benzinga.com/general/market-summary/24/12/42751664/sp-500-ends-2024-23-higher-experts-see-double-digit-growth-for-2025">S&amp;P 500's 22.95% gain</a>. 
This strength has inevitably seeped into telecom-focused ETFs, making them attractive investment avenues. Here are three ETFs that could be a door for investors to ride this wave:
Strong gains in several telecom ETFs speak of the sector's bullish momentum:
<ul>
<li>Vanguard Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>): Up 10% over the past three months and 31.36% over the past year.</li>
<li>Fidelity MSCI Communication Services Index ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FCOM#NYSE">FCOM</a>): Climbed 9.83% in the past three months and 31.52% over the past year.</li>
<li>iShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>): Gained 6.7% over three months and 15% in a year.</li>
</ul>
Also Read: <a href="https://www.benzinga.com/trading-ideas/long-ideas/25/01/43331404/top-3-tech-and-telecom-stocks-that-could-lead-to-your-biggest-gains-this-quarter">Top 3 Tech And Telecom Stocks That Could Lead To Your Biggest Gains This Quarter</a>
The telecom sector's outlook remains optimistic, considering the positive forecasts in artificial intelligence. Moreover, interest rate cuts throughout 2024, and President Trump&#8217;s push for further rate reductions, could support positive sentiments and hence, industry growth.
Notably, telecom giants AT&amp;T (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>), Verizon (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>), T-Mobile (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TMUS#NASDAQ">TMUS</a>) and Comcast (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMSCA#NASDAQ">CMSCA</a>) reported relatively healthy Q4 earnings, reinforcing investor confidence:
<ul>
<li>Comcast<a href="https://www.benzinga.com/25/01/43335926/comcast-q4-earnings-beats-estimates-peacock-subscribers-surge-29-dividend-raised-15-billion-buyback-approved"> exceeded Wall Street's expectations</a>, driven by strong broadband revenues, despite customer losses. Earnings per share (EPS) is at 96 cents adjusted revenue at $31.92 billion; net income was $4.78 billion, up 47% year over year, and adjusted EBITDA growth of 10%.</li>
<li>Verizon's Q4 results reflected healthy growth, with both revenue and earnings <a href="https://www.benzinga.com/news/earnings/25/01/43189382/verizon-q4-earnings-revenue-beat-1-million-mobile-and-broadband-subscriber-adds-business-segment-margin-expands">surpassing estimates</a>. Its EPS was recorded at $1.10 adjusted, revenue at $35.68 billion, and net Income at $5.11 billion, rebounding from a loss a year ago.</li>
<li>AT&amp;T reported <a href="https://www.benzinga.com/25/01/43230968/att-q4-earnings-307k-fiber-adds-projects-mid-teens-broadband-growth-in-2025">strong subscriber growth</a> and operational efficiency gains, with EPS and revenues at $0.54 and $32.3 billion respectively. Net Income of $4.03 billion nearly doubled from a year ago.</li>
<li>T-Mobile&#8217;s stock gained after it reported <a href="https://www.benzinga.com/news/earnings/25/01/43300596/t-mobile-q4-earnings-beats-estimates-adds-1-9-million-postpaid-customers-targets-6-million-new-customers-in-2025">strong fourth-quarter results</a>, surpassing analyst expectations. Its EPS was $2.57, and revenue came in at $21.87 billion.</li>
</ul>
U.S. telecom ETFs remain well-positioned for continued growth thanks to strong corporate earnings and an optimistic industry outlook.
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Telecom ETFs Gain Momentum As Sector Giants AT&T, Verizon, T-Mobile Reinforce Investor Confidence

Editor&#8217;s Note: In Paragraph one, added the details on the media reports circulating about JNPR-HPE deal.
Juniper Networks, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JNPR#NYSE">JNPR</a>) shares are trading lower premarket on Tuesday. In JNPR-HPE deal related news, Hewlett Packard Enterprise Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPE#NYSE">HPE</a>) is reportedly scheduled to meet with the DOJ on Tuesday to discuss the deal. Media reports circulate that the regulatory appears to be leaning toward a lawsuit to block the deal.
In another development, the company, along with Liberty Global Ltd. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/LBTYA#NASDAQ">LBTYA</a>), disclosed that they have successfully completed a joint proof-of-concept (POC) to enhance user <a href="https://www.benzinga.com/pressreleases/25/01/b43258523/liberty-global-and-juniper-networks-collaborate-to-demonstrate-seamless-cloud-connections" target="_blank" rel="noreferrer noopener">experience across multi-cloud environments</a>.
The POC showcased a cost-efficient, software-programmable, and secure solution for seamless connectivity across diverse cloud environments.
Also Read: <a target="_blank" href="https://www.benzinga.com//node/43261206" rel="noreferrer noopener">Nvidia, Broadcom Gain Over 5% As Tech Giants Rebound After Monday Sell-Off: What&#8217;s Going On?</a>
Built on Juniper Cloud Interlink, it automates hybrid multi-cloud networking across public cloud, on-premises, and co-located data centers.
Currently in advanced development within Juniper Beyond Labs, this innovation aims to enhance user experience-led networking.
The POC marks a key advancement for Liberty Global&#8217;s technology team in simplifying multicloud connectivity.
Juniper Cloud Interlink was tested for secure, reliable, provider- and location-agnostic hybrid multicloud networking.
Juniper Cloud Interlink Gateways were deployed in an AWS Outpost at Liberty Global&#8217;s Reading, U.K. site and in regional cloud environments from AWS and Google.
Raj Yavatkar, SVP and CTO at Juniper Networks, said, &#8221;In this POC we were able to show how Liberty Global could deploy Juniper Cloud Interlink to fully align cloud-based network access for applications and services to user expectations—yielding a secure, assured experience.&#8221;
&#8221;It is also a perfect example of the important work done in Juniper Beyond Labs, helping us to anticipate our customers&#8217; challenges and develop solutions that can shape the future of networking.&#8221;
Yesterday, the company unveiled the 2025 evolution of its Juniper Partner Advantage (JPA) program, aimed at equipping partners with resources, support, and strategic guidance to<a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/b43225184/juniper-networks-announces-juniper-partner-advantage-2025-to-accelerate-partner-growth-and-profita" rel="noreferrer noopener"> expand opportunities and enhance profitability</a>.
Juniper Networks will release preliminary financial results for the quarter ended <a target="_blank" href="https://www.benzinga.com//node/42902276" rel="noreferrer noopener">December 31, 2024, on February 4.</a>
Investors can gain exposure to the stock via iShares Cybersecurity and Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IHAK#NYSE">IHAK</a>) and iShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>).
Price Action: JNPR shares are down 7.50% at $35.75 premarket at the last check Tuesday.
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Juniper, Liberty Global Complete Proof-Of-Concept For Secure Multicloud Connectivity Solution (UPDATED)

AT&amp;T Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) disclosed that it completed a structured sale-leaseback of 74 underutilized central office properties with Reign Capital, generating <a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/n43187394/at-t-announces-structured-sale-leaseback-of-real-estate-to-development-firm-reign-capital" rel="noreferrer noopener">over $850 million in upfront cash</a>.
The deal, covering 13 million square feet, also includes future profit-sharing from redevelopment opportunities.
The transaction aligns with AT&amp;T&#8217;s strategy to exit most legacy copper network operations by 2029 while optimizing capital allocation.
By leasing only necessary space, the company streamlines its real estate footprint while maintaining exclusive control over critical infrastructure.
Notably, earlier in 2021, AT&amp;T also executed a similar transaction with Reign Capital.
Read: <a href="https://www.benzinga.com/25/01/42931807/t-mobile-sued-over-massive-data-breach-impacting-79-million-americans-sensitive-information-included-names-addresses-and-more" target="_blank" rel="noreferrer noopener">T-Mobile Sued Over Massive Data Breach Impacting 79 Million Americans: Sensitive Information Included Names, Addresses, And More</a>
That deal comprised 13 properties covering over 3 million square feet and generated over $300 million in upfront cash. Initial redevelopment revenue generation is projected to begin in 2025.
Last month, AT&amp;T partnered with JobsOhio to build a fiber network providing high-speed internet to all 14,000 residents and businesses in East Cleveland. The city is investing $1 million, with additional support <a href="https://www.benzinga.com/pressreleases/24/12/g42535039/at-t-and-jobsohio-partner-to-bring-high-speed-fiber-broadband-internet-to-residents-and-businesses" target="_blank" rel="noreferrer noopener">from a $1.9 million JobsOhio OSIP grant</a>.
The Dallas-based company plans to release its fourth-quarter <a href="https://www.benzinga.com/earnings">2024 results on Jan. 27</a>.
Investors can gain exposure to the stock via&nbsp;iShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) and WBI Power Factor High Dividend ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WBIY#NYSE">WBIY</a>).
Price Action: T shares are up 0.64% at $22.67 at the last check Friday.
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Asset Sales

AT&T Nets $850 Million In Sale-Leaseback Deal As Part Of Copper Network Exit

Cisco Systems, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>) shares are trading higher on Friday.
CSCO stock has gained around 20% in the past year. Investors can gain exposure to the stock via&nbsp;iShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) and&nbsp;First Trust NASDAQ Cybersecurity ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CIBR#NASDAQ">CIBR</a>).
This week, the company introduced Cisco AI Defense, an advanced solution designed to support and secure <a target="_blank" href="https://www.benzinga.com/pressreleases/25/01/n42999901/cisco-unveils-ai-defense-to-secure-the-ai-transformation-of-enterprises" rel="noreferrer noopener">AI transformation within enterprises</a>.
Cisco AI Defense is an end-to-end solution that secures both the development and deployment of AI applications, enabling enterprises to advance their AI initiatives.
The solution protects against AI misuse, data leakage, and sophisticated threats that traditional security solutions cannot address.
Jeetu Patel, Executive Vice President and Chief Product Officer, Cisco stated, &#8220;In a dynamic landscape where competition is fierce, speed decides the winners. Fused into the fabric of the network, Cisco AI Defense combines the unique ability to detect and protect against threats when developing and accessing AI applications without tradeoffs.&#8221;
In November 2024, Cisco reported revenue of $13.84 billion for the first&nbsp;quarter, beating analyst estimates of $13.77 billion. Adjusted earnings per share came in at 91 cents, exceeding the expected 87 cents per share, <a target="_blank" href="https://www.benzinga.com/analyst-ratings/price-target/24/11/41981019/cisco-shares-are-dropping-today-whats-going-on" rel="noreferrer noopener">according to&nbsp;Benzinga Pro</a>.
At that time, CEO Chuck Robbins had emphasized the company's strategic position in <a target="_blank" href="https://www.benzinga.com/news/24/11/42073894/whats-going-on-with-cisco-systems-stock-2" rel="noreferrer noopener">AI-driven infrastructure investments</a>.
Price Action: CSCO shares are up 1.33% at $60.62 at the last check Friday.
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Photo via Shutterstock.

What's Going On With Cisco Systems Stock On Friday?

AT&amp;T Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/T#NYSE">T</a>) shares are trading higher after the company updated its 2024 guidance and<a target="_blank" href="https://www.benzinga.com/pressreleases/24/12/n42285941/at-t-outlines-strategic-plan-to-drive-sustainable-growth-and-enhanced-shareholder-returns" rel="noreferrer noopener"> disclosed its long-term strategy</a>.
Strategy Update: AT&amp;T is modernizing its 5G wireless network, aiming to complete the transition to open, high-capacity technology by 2027. The network, with deep mid-band 5G spectrum, will cover over 300 million people by the end of 2026.
In broadband, AT&amp;T is expanding its already largest fiber network in the U.S., planning to reach over 50 million locations by 2029.
At the same time, the company is working to exit its legacy copper network operations across most of its wireline footprint by the end of 2029.
2024 Guidance: The company now sees adjusted EPS of $2.20 &#8211; $2.25&nbsp;&nbsp;compared to the street view of $2.21<a target="_blank" href="https://www.benzinga.com/news/earnings/24/10/41485572/at-t-q3-earnings-strong-postpaid-phone-adds-adj-ebitda-growth-4-4b-impairment-charge-and-more" rel="noreferrer noopener"> (vs. prior outlook of $2.15 &#8211; $2.25)</a>.
Also, the company expects wireless service revenue to grow by 3% range and broadband to grow by over 7%.
Moreover, the company projects adjusted EBITDA growth in the 3% range, capital investment at the high-end of the&nbsp;$21 billion&nbsp;to&nbsp;$22 billion&nbsp;range, and free cash flow <a target="_blank" href="https://www.benzinga.com/calendars/guidance" rel="noreferrer noopener">in the&nbsp;$17 billion &#8211;&nbsp;$18 billion&nbsp;range in FY24</a>.
This includes an expected adjusted equity in net income from DIRECTV of approximately&nbsp;$0.30&nbsp;per share post-tax. When excluding this, the company expects adjusted EPS of&nbsp;$1.90&nbsp;&#8211; $1.95.
Long-Term Outlook: AT&amp;T has set its financial targets for 2025-2027, excluding earnings and cash flows from DIRECTV following the expected sale of its 70% stake<a target="_blank" href="https://www.benzinga.com/m-a/24/09/41089650/at-t-gets-major-exit-cue-as-directv-clinches-dish-deal" rel="noreferrer noopener"> in DIRECTV to TPG by mid-2025</a>.
The company expects $5.4 billion in after-tax cash from the DIRECTV sale in 2025 and $0.5 billion in 2029.
AT&amp;T expects its plan to generate over $50 billion in financial capacity over the next three years, primarily through organic growth.
The company forecasts low single-digit annual growth in service revenue, with Mobility service revenue increasing 2%-3% annually and consumer fiber broadband growing in the mid-teens.
AT&amp;T plans $22 billion in annual capital investment from 2025-2027, with free cash flow (excluding DIRECTV) reaching $16 billion in 2025, growing by $1 billion annually to over $18 billion by 2027.
The company sees adjusted EPS (excluding DIRECTV) of $1.97-$2.07 in 2025 (vs. estimate of 2.24), with double-digit growth by 2027.
The company expects to achieve cost savings of $3 billion and free cash flow of over $18 billion by 2027.
AT&amp;T&#8217;s plan includes $10 billion in additional flexibility for strategic investments, debt reduction, or further capital returns.
Buyback &amp; Dividend: The Board has authorized an initial $10 billion for share repurchases, set to begin once the net leverage target is reached and complete by 2026.
The company expects another $10 billion in repurchases in 2027, pending Board approval.
The company plans to return over $40 billion to shareholders via dividends and share repurchases, maintaining its $1.11 per share annual dividend, totaling $20 billion in dividends and $20 billion in repurchases from 2025-2027.
Investors can gain exposure to the stock via&nbsp;iShares U.S. Telecommunications ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) and&nbsp;Simplify Exchange Traded Funds Simplify Next Intangible Value Index ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/NXTV#BATS">NXTV</a>).
Price Action: T shares are up 2.91% at $23.36 premarket at the last check Tuesday.
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Photo via Shutterstock.

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AT&T Revises 2024 Guidance, Targets $22 Billion Annual Capital Investment Through 2027 & More

Cisco Systems, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>) inked a 5.5-year Whole Portfolio Agreement (WPA) with MGM Resorts International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/MGM#NYSE">MGM</a>), granting MGM access<a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/n42042991/cisco-and-mgm-resorts-international-sign-multi-year-agreement" rel="noreferrer noopener"> to Cisco&#8217;s software portfolio</a>.
The portfolio includes cybersecurity, software-defined networking, WAN, digital experience assurance, and data center services.
This collaboration aims to enhance the guest and employee experience across all MGM Resorts properties.
The agreement will automate MGM Resorts&#8217; network, enabling future location services and next-gen machine learning applications in gaming and hospitality, enhancing guest engagement.
Cisco&#8217;s technology will also ensure uptime and security, critical for delivering exceptional guest experiences in MGM&#8217;s 24/7 operations.
Branden Newman, Chief Technology Officer, MGM Resorts International, said, &#8220;The new agreement with Cisco will give our employees the technology, speed and agility they need as we continue to deliver amazing guest experiences at all MGM Resorts&#8217; destinations.&#8221;
Marco Mohajer, President, Technologent added, &#8220;Equipped with data from across the business, we can predict and proactively address MGM Resorts&#8217; technology and communication needs to deliver an exceptional customer experience.&#8221;
Last week, Cisco reported revenue of $13.84 billion for the quarter, beating analyst estimates of $13.77 billion. Adjusted earnings per share came in at 91 cents, exceeding the expected 87 cents per share, <a target="_blank" href="https://www.benzinga.com/analyst-ratings/price-target/24/11/41981019/cisco-shares-are-dropping-today-whats-going-on" rel="noreferrer noopener">according to&nbsp;Benzinga Pro</a>.
This marks the tenth consecutive quarter that Cisco has topped estimates for revenue and earnings.
Investors can gain exposure to the stock via&nbsp;iShares U.S. Telecommunications ETF&nbsp;(BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) and&nbsp;First Trust NASDAQ Cybersecurity ETF&nbsp;(NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CIBR#NASDAQ">CIBR</a>).
Price Action: CSCO shares are up 0.59% at $57.80 at the last check Monday.
Image via Shutterstock
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Cisco's 5.5-Year Pact With MGM Resorts Brings Next-Gen Tech To The Casino Floor And Beyond

Cisco Systems, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>) disclosed that LTIMindtree has adopted Cisco Secure Access as its Security Service Edge (SSE) solution to provide secure hybrid work experiences for its <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/n41926853/cisco-and-ltimindtree-expand-partnership-to-deliver-next-generation-secure-access-globally" rel="noreferrer noopener">global employees and customers</a>.
The companies have expanded their partnership to offer integrated Secure Access Service Edge (SASE) solutions using Cisco technology to LTIMindtree&#8217;s global clients.
LTIMindtree&#8217;s ability to customize solutions for specific industries complements Cisco's technology, such as Cisco Secure Access and SD-WAN.
Jeetu Patel, Executive Vice President and Chief Product Officer, Cisco, added, &#8221;With AI-powered threats rising, we are combating sophisticated attackers across a more expansive landscape. Our customers need their security to operate in the background, at machine scale to make the experience seamless and secure for hybrid workers.&#8221;
LTIMindtree will leverage Cisco Secure Access as its new security service edge (SSE) solution to cover its 80,000 hybrid workers with secure internet access, advanced zero trust network access and embedded AI.
Nachiket Deshpande, Chief Operating Officer &amp; Whole-time Director, LTIMindtree said, &#8220;We were able to quickly deploy the solution, and it now protects our hybrid workforce while delivering a better user experience and simplified IT management.&#8221;
On Tuesday, Cisco introduced advanced wireless solutions, including smart Wi-Fi 7 access points and unified subscription licensing, designed to enable intelligent, <a target="_blank" href="https://www.benzinga.com/pressreleases/24/11/n41901227/cisco-introduces-intelligent-secure-and-assured-wi-fi-7-to-transform-employee-and-customer-experie" rel="noreferrer noopener">secure, and adaptable smart spaces</a>.
Investors can gain exposure to the stock via&nbsp;iShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) and First Trust NASDAQ Cybersecurity ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CIBR#NASDAQ">CIBR</a>).
Price Action: CSCO shares are trading higher by 0.15% at $58.80 premarket on Wednesday.
Photo via Shutterstock
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Cisco And LTIMindtree Join Forces To Fortify Hybrid Work Security with Cutting-Edge Solutions

While the S&amp;P 500 Index continues its post-election surge, breaking through key resistance levels, <a href="https://www.benzinga.com/topic/nasdaq-100">the NASDAQ 100</a> is struggling to keep up.
This catch-up is prompting JPMorgan analyst Jason Hunter to ask: Is this a shift in market leadership or a temporary pause for the tech-heavy index?
<h1 class="wp-block-heading">S&amp;P 500 Breaks Out, NASDAQ 100 Stalls</h1>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="794" height="464" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM.png" alt="" class="wp-image-643450" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM.png 794w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM-300x175.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12121428/Screenshot-2024-11-12-at-10.44.09-PM-768x449.png 768w" sizes="(max-width: 794px) 100vw, 794px" /></figure>
After the S&amp;P 500 re-accelerated through April's channel resistance and the 5850-5878 highs post-election, the index remains firmly bullish, with key support holding in the 5600s. The next resistance levels are now pegged at 6166 and 6194. Meanwhile, the NASDAQ 100 has faced a roadblock, unable to surpass its August rebound high. 
Hunter highlights that despite a broad market rally, the NASDAQ has underperformed, suggesting a potential leadership shift away from tech.
This divergence between the two indices is critical. If the NASDAQ 100 fails to break through its recent range, it would further support the idea that a regime change is in the cards — one where sectors outside of tech, like communication services, could be driving the market forward.
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<h1 class="wp-block-heading">Communication Services Steals The Spotlight</h1>
Interestingly, while the NASDAQ 100 as a whole struggles, the Communication Services sector has been leading the charge in the index's breakout. Good news for investors in the iShares U.S. Telecommunications ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#NYSE">IYZ</a>) and the SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>)
Tech and semiconductor stocks have lagged, clustered just below resistance. Relevant for investors in the Vanguard Information Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VGT#NYSE">VGT</a>), the Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>), the Invesco QQQ Trust Series I (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) and the Invesco NASDAQ 100 ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQM#NASDAQ">QQQM</a>).
Hunter's outlook suggests that in the coming weeks these hardware-oriented stocks may get "dragged higher" if the broader market rally continues. The question remains: Will they catch up, or will they continue to underperform as the rally unfolds?
<h1 class="wp-block-heading">Semiconductor Struggles: A Key Test For Tech's Future</h1>
Semiconductors, once at the heart of tech's dominance, have been particularly sluggish. The Philadelphia Semiconductor Index (SOX) has faced stiff resistance at the 5397 July peak and the 5537 78.6% retracement level.
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="794" height="464" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM.png" alt="" class="wp-image-643479" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM.png 794w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM-300x175.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/11/12122734/Screenshot-2024-11-12-at-10.57.21-PM-768x449.png 768w" sizes="(max-width: 794px) 100vw, 794px" /></figure>
While it has managed to hold above the 4997 200-day moving average, Hunter is closely watching whether these resistance levels will break.
If the semiconductor sector can't clear this hurdle, it would signal a continuation of the underperformance that has characterized the group since mid-summer. 
On the other hand, if bullish momentum drags semiconductors through these barriers, it could fuel a catch-up rally in tech stocks, reversing the trend of broad market leadership shifting to other sectors.
Investors in the VanEck Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMH#NASDAQ">SMH</a>), the iShares Semiconductor ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NASDAQ">SOXX</a>) and the Direxion Daily Semiconductor Bull 3x Shares (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOXL#NASDAQ">SOXL</a>) should remain wary of their holdings.
<h1 class="wp-block-heading">Will Tech Stage A Comeback?</h1>
Despite these challenges, Hunter remains optimistic that the post-election bullish momentum could eventually carry tech stocks, particularly semiconductors, back into the leadership role they held for much of the 2022-2024 rally. 
But if semiconductors continue to falter, and the broader market continues to rally without them, it could confirm that the days of tech dominance are coming to an end — at least for the near term.
For now, Hunter is watching for any breakouts in the tech sector, especially in semiconductors, to see if they can reclaim their former leadership position. 
The key levels to watch are the 5397 July gap for the SOX Index and the 21433-22306 range for the NASDAQ 100.
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SOXX

NASDAQ 100 Struggles To Close Gap With S&P 500 During Semiconductor Slowdown

Ciena Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CIEN#NYSE">CIEN</a>) shares are trading lower on Monday. JP Morgan analyst Samik Chatterjee downgraded the company to Neutral from Overweight <a target="_blank" href="https://www.benzinga.com/quote/cien/analyst-ratings" rel="noreferrer noopener">with a price target of $65</a>.
The analyst writes that the downgrade is due to current valuations overlooking key factors that limit EPS upside, including constrained telco spending, limited gross margin levers compared to peers, and lower exposure to cloud capital expenditures.
Chatterjee says that the capex growth outlook for U.S. telcos is muted for 2025, with international telcos also lagging in recovery.
The analyst notes that Ciena&#8217;s telecom revenues are currently 9% below pre-pandemic levels, while North American telco capex is down 8%, indicating limited potential for Ciena to significantly outperform these trends.
For FY25, the analyst expects revenue growth to align with the long-term rate of 6%-8%, as telecom spending remains constrained, contrasting with prior years of outsized growth driven by pent-up demand from network underinvestment.
This month, Ciena authorized a three-year share repurchase program, <a target="_blank" href="https://www.benzinga.com/news/24/10/41147368/whats-going-on-with-ciena-stock-wednesday" rel="noreferrer noopener">starting in the 2025 fiscal year</a>.
Investors can gain exposure to the stock via SPDR S&amp;P Telecom ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XTL#NYSE">XTL</a>) and iShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>).
Price Action: CIEN shares are down 3.93% at $64.07&nbsp;at the last check Monday.
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CIEN

Ciena Downgraded: Analyst Cites Telco Spending Slump And Margins Squeeze

Cisco Systems, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CSCO#NASDAQ">CSCO</a>) shares are trading <a target="_blank" href="https://www.benzinga.com/movers" rel="noreferrer noopener">marginally higher on Friday.</a>
The software behemoth reportedly agreed to fund CoreWeave, a cloud-computing provider valued at about $23 billion, <a href="https://www.bloomberg.com/news/articles/2024-10-03/cisco-nears-investment-in-coreweave-at-23-billion-valuation?srnd=phx-technology&amp;sref=TBDibEcD" target="_blank" rel="noreferrer noopener">reported</a> Bloomberg.
Major tech companies have been making substantial investments to enhance infrastructure for AI development. The rise of artificial intelligence applications like ChatGPT and the training of large language models has driven increased demand for cloud computing services, per a Reuters report.
Also Read: <a target="_blank" href="https://www.benzinga.com//node/41149788" rel="noreferrer noopener">OpenAI Valuation Soars To $157B In Latest Funding Round</a>
CoreWeave&#8217;s chief executive officer&nbsp;is Michael Intrator. CoreWeave counts NVIDIA Corporation, Magnetar Capital, Coatue Management, Jane Street, and Fidelity, among its investors.
The latest deal allows existing shareholders of Cisco such as employees to tender $400 million to $500 million of their holdings, Bloomberg reported earlier.
Also Read: <a target="_blank" href="https://www.benzinga.com/trading-ideas/technicals/24/09/41096549/cisco-set-for-technical-breakout-as-golden-cross-signals-strength-analyst-predicts-stock" rel="noreferrer noopener">Cisco Set For Technical Breakout As Golden Cross Signals Strength: Analyst Predicts Stock Will &#8216;Quietly&#8217; Climb Higher</a>
According to <a href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>, CSCO stock has lost over 1% in the past year. Investors can gain exposure to the stock via iShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) and First Trust NASDAQ Cybersecurity ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CIBR#NASDAQ">CIBR</a>).
Earlier this month, &nbsp;VAST Data, an AI data platform company, announced it has extended its collaboration with&nbsp;Cisco to<a target="_blank" href="https://www.benzinga.com/pressreleases/24/10/g41121126/vast-data-expands-partnership-with-cisco-to-deliver-end-to-end-full-stack-ai-infrastructure" rel="noreferrer noopener"> further simplify AI deployments for enterprises.&nbsp;</a>
&#8220;As AI adoption grows, it&#8217;s clear that data centers will be a pivotal proving ground where business is won and lost. The challenge is that the complexity with managing, configuring, updating, and patching a modern data center is only getting harder with AI,&#8221; said&nbsp;Jeremy Foster, SVP and GM of Cisco Compute.
Price Action: CSCO shares are trading higher by 0.57% to $52.73 premarket at last check Friday.
Photo via Shutterstock
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What's Going On With Cisco Systems Stock Friday?

Roku, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/ROKU#NASDAQ">ROKU</a>) shares are trading higher <a target="_blank" href="https://www.benzinga.com/premarket" rel="noreferrer noopener">in the morning session on Wednesday.</a>
The company has introduced Roku Ads Manager, a self-service platform <a target="_blank" href="https://www.benzinga.com/pressreleases/24/09/b40918566/roku-launches-ads-manager-a-self-service-performance-solution-for-growth-marketers" rel="noreferrer noopener">tailored for CTV performance.</a>
&#8220;In order to meet growth marketers&#8217; needs across all direct-to-consumer brands, we built a seamless solution to buying CTV video ads for brands of any size,&#8221;&nbsp;said&nbsp;Louqman Parampath, VP of Product Management, Roku.
As TV ad spending increasingly moves away from linear formats and digital-native marketers seek to expand beyond search and social media, Roku said its Ads Manager will support the success of growth marketers.
The VP noted that Roku Ads Manager is uniquely equipped to provide data, optimization, and advertising formats unavailable in other CTV self-serve solutions, such as native shoppable campaigns with Shopify, while also offering a buying experience similar to that of search and social media.
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Roku Ads Manager offers competitive pricing and spending efficiency by utilizing Roku&#8217;s direct premium inventory without third-party fees. Marketers can create interactive video overlays, allowing viewers to send themselves text messages while watching ads.
Additionally, Shopify merchants can launch self-service shoppable ads, enabling consumers to complete purchases directly using their Roku remote.
According to&nbsp;<a target="_blank" href="https://pro.benzinga.com/?gspk=YWRhbWVja2VydDUzMzY&amp;gsxid=zBMR4PKmcgBw" rel="noreferrer noopener">Benzinga Pro</a>, ROKU stock has lost over 14% year to date. Investors can gain exposure to the stock via&nbsp;ARK Next Generation Internet ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ARKW#NYSE">ARKW</a>) and&nbsp;iShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>).
Price Action: ROKU shares are trading higher by 2.22% to $76.33 at last check Wednesday.
Photo via Shutterstock
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ARKW

ROKU

Roku Introduces Innovative Ads Manager For Direct-to-Consumer Brands: Details

Comcast Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>) shares are trading lower&nbsp;after the company reported worse-than-<a target="_blank" href="https://www.benzinga.com/news/earnings/24/07/39908857/comcasts-q2-earnings-studios-and-theme-parks-pull-revenue-lower-broadband-and-video-subs-fall" rel="noreferrer noopener">expected&nbsp;second-quarter sales results yesterday</a>.
The company reported a revenue decline of 2.7% year-over-year to $29.69 billion, missing the&nbsp;analyst consensus estimate of $30.02 billion and adjusted EPS of $1.21, beating&nbsp;analyst consensus estimates of $1.12.
BofA Securities analyst Jessica Reif Ehrlic reiterated a Buy rating <a target="_blank" href="https://www.benzinga.com/quote/CMCSA/analyst-ratings" rel="noreferrer noopener">with a price target of $50</a>.
Although it&#8217;s early in the quarter and most ACP activity will be in the third quarter, the analyst is reducing the broadband net loss forecast to -150k from -165k due to positive customer response, Comcast&#8217;s targeted segmentation, and favorable seasonality.
Ehrlic revised the 2024 broadband net loss forecast to -415k (from -485k). For C&amp;P, revenue is expected to be flat (0.0%) with a 1.5% EBITDA increase (previously 1.3%), and C&amp;E revenue growth is revised to 2.1% (from 5%) with an 8% EBITDA decline (previously 2.8% growth) due to lower Theme Park and Media forecasts, especially from reduced Olympic profitability.
The analyst now projects 2024 EBITDA to be flat (previously 1.1% growth), EPS is updated to $4.20, and FCF is revised to $11.1 billion.
KeyBanc Capital Markets analyst Brandon Nispel reiterated the Overweight rating and lowered the price target to $44 from $45.
The analyst writes that near-term catalysts are elusive, with challenges in Theme Park growth and Peacock loss improvement due to lower domestic park attendance and the NBA contract.
Nispel writes that they remain positive on CMCSA&#8217;s efficient Broadband operations and modest growth, though short-term subscriber trends are challenging and recovery timelines are pushed out.
The analyst expects low-single-digit operating cash flow growth, reduced capital spending in 2025, and FCF growth (excluding one-time Hulu tax payments), which should lead to shareholder returns despite ongoing competitive challenges.
Oppenheimer analyst Timothy Horan reaffirmed the Outperform rating with a price target of $55.
The analyst writes that main concern is high broadband losses due to increasing FWA/fiber competition, impacting Video/Voice subscribers.
While the company offers aggressive bundled promotions, the analyst adds that it remains focused on FCF generation. He projects subscriber trends to remain volatile in the near term.
Investors can focus on the stock via Simplify Exchange Traded Funds Simplify Next Intangible Value Index ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/NXTV#BATS">NXTV</a>) and IShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>).
Price Action: CMCSA shares are down 1.58% at $37.90 at the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Wikimedia Commons
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Reiteration

CMCSA

Comcast Faces Headwinds: Analysts Adjust Expectations Amid Broadband Struggles and Theme Park Downturns

Peacock and its parent company, Comcast Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CMCSA#NASDAQ">CMCSA</a>), are gearing up for a pivotal moment with the upcoming 2024 Olympics in Paris.
Pacock's president, Kelly Campbell, is spearheading efforts with two dedicated task forces to attract viewers during the Games and ensure they remain engaged afterward.
With the opening ceremonies just days away, Campbell and her superiors believe the Olympics will significantly boost Peacock's position in the competitive streaming landscape against giants like Netflix Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NFLX#NASDAQ">NFLX</a>) and Walt Disney Co's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIS#NYSE">DIS</a>) Disney+, <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-07-22/comcast-bets-on-paris-olympics-to-make-peacock-a-must-have?srnd=phx-industries-entertainment&amp;sref=TBDibEcD" rel="noreferrer noopener">Bloomberg</a> reports.
"This is going to be a defining moment for Peacock," Campbell said in a recent interview. Over a 19-day period, Peacock will exclusively stream every Olympic event for U.S. viewers, offering thousands of hours of live and on-demand content, including a high-tech morning recap narrated by an AI-synthesized version of Al Michaels' voice.
For NBCUniversal, Comcast's media division, the stakes are high. The division, which owns several cable networks like Bravo, E!, and USA, faces significant pressure as viewers continue to shift from traditional TV bundles to streaming services, Bloomberg writes.
Comcast has invested billions into Peacock, yet it still trails behind competitors like Netflix and Walt Disney.
Comcast had intended to use the 2020 Tokyo Olympics to launch Peacock, but the pandemic delayed the launch. Despite the setbacks, the service launched in July 2020.
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Unlike other streaming services, Peacock started as a free, ad-supported platform with optional paid tiers. Initially, it struggled to attract subscribers without the Olympic boost, but the pandemic created a captive audience that drove growth.
In a strategic meeting in 2021, Comcast CEO Brian Roberts approved increased investments in Peacock, including more original content, movies, and sports.
The platform has since reclaimed popular series and movies and released hit originals like "Poker Face" and "The Best Man: The Final Chapters." Peacock has also secured exclusive rights to major sports events, including NBA and NFL games, bolstering its appeal.
Peacock now costs $7.99 a month following price increases to fund new programming. Despite high churn rates, the service continues to attract new subscribers, partly due to its strategic releases during major sporting events.
The upcoming Olympics will feature promotions for new shows like "Fight Night" and "The Day of the Jackal," leveraging the excitement of the Games to retain viewers.
With 34 million subscribers as of March, Peacock outperforms some rivals in U.S. viewership.
Comcast stock has lost more than 5% in the last 12 months. Investors can gain exposure to the stock via&nbsp;IShares U.S. Telecommunications ETF (BATS:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#BATS">IYZ</a>) and Vanguard Communication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>).
Price Action: CMCSA shares were trading lower by 3.04% at $38.93 premarket at the last check on Tuesday.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo by rarrarorro on Shutterstock

NFLX

Comcast's Paris Olympics Bet For Boosting Peacock's Viewership: Report

Verizon Communications Inc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VZ#NYSE">VZ</a>) is reportedly considering a significant move to sell thousands of mobile phone towers across the U.S.
Verizon has engaged advisors to assess potential buyers&#8217; interest in a package comprising approximately 5,000 to 6,000 towers. A possible sale could yield over $3 billion, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2024-07-15/verizon-is-said-to-explore-selling-thousands-of-towers-in-us?sref=TBDibEcD" rel="noreferrer noopener">cites</a> familiar sources, although discussions are in the early stages and do not guarantee a transaction.
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In 2015, Verizon offloaded lease and operational rights for about 11,000 towers to American Tower Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AMT#NYSE">AMT</a>) for an upfront payment of $5 billion. This deal helped Verizon raise funds for airwave purchases and debt reduction, according to Bloomberg.
The current batch of towers will likely attract interest from infrastructure companies and strategic investors. Major telecom firms often leverage their mobile phone tower assets to generate cash.
Goldman Sachs analyst <a target="_blank" href="https://www.benzinga.com/news/24/07/39580917/verizon-at-t-and-t-mobile-set-for-gains-goldman-sachs-cites-ai-and-data-center-demand" rel="noreferrer noopener">views the U.S. telecom</a> sector optimistically, emphasizing the transformation underway among wireless carriers and data centers.
Verizon stands out in Schneider&#8217;s analysis for its strengthening wireless operations and promising prospects in fixed wireless for both consumer and business segments.
Investors tracking developments can consider exposure through Vanguard Telecommunication Services ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VOX#NYSE">VOX</a>) and iShares U.S. Telecommunications ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IYZ#NYSE">IYZ</a>).
<h2 class="wp-block-heading">Verizon Stock Prediction For 2024</h2>
Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.
Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Looking at Verizon Communications, an investor could make an assessment about a stock's long term prospects using a moving average and trend line. If they believe a stock will remain above the moving average, which many believe is a bullish signal, they can extrapolate that trend into the future using a trend line. For Verizon Communications, the 200-day moving average sits at $38.68, according to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, which is below the current price of $40.79. For more on charts and trend lines, <a href="https://pro.benzinga.com/">see a description here.</a>
Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.
Price Action: VZ stock traded higher by 0.27% at $40.90 premarket at the last check on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo via Shutterstock

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