Are These The Best 5G stocks To buy Or Sell Right Now?
Before the coronavirus pandemic, 5G stocks were the top stocks on every investor’s mind. That was until Covid-19 happened and started grabbing headlines. The promise of an upgraded mobile network took a backseat. Most of the market movements we are seeing today are still revolving around potential vaccine and drug treatments for the novel coronavirus. Any slight hope on these would move the market significantly more than any fiscal or monetary policy.
Despite the coronavirus pandemic, telecom companies have stayed on track in building up 5G wireless networks. However, an unfortunate turn of events happened. Some people fell victim to conspiracy theorists who suggested that the 5G network was causing the coronavirus. That was baseless and unscientific for sure. Radio waves can’t create a virus. But that’s not the main point. For investors, what matters is to identify which 5G stocks to buy when network deployment gains traction. The beneficiaries in the 5G space come from many different areas. From service providers to equipment manufacturers, there are a number of sectors well positioned to benefit from the introduction of 5G.
Best 5G Stocks To Buy Or Sell: AT&T
First, up the list, AT&T (T Stock Report) has an impressive future plan that could defend the telco giant’s position on the top. From the records, the firm’s wireless business has been booming. And that’s highly positive news we are getting considering the world’s economy was hammered from the pandemic beginning the first quarter.
AT&T plans to launch about 15 devices with 5G this year. The company expects 5G service plans to become more affordable. Could AT&T’s role in 5G spark some long-overdue growth in the stock price?
“You should not assume that 5G is an exclusive capability for the most expensive handsets, and found only in the most expensive rate plans … The speed at which the technology is beginning to make its way into the network is unparalleled.” – Jeff McElfresh, chief executive of AT&T Communications
Strategic Acquisitions and Partnerships To Boost T Stock
AT&T rolled out its streaming service HBO Max for an impressive direct to consumer experiences across all age groups. Such offerings could allow the company to get a grip in the subscription video on demand (SVOD) market. The company aims to leverage synergy opportunities in its mobile, pay TV and broadband offerings to gain 50 million subscribers by 2025.
To further enhance its strong ecosystem, AT&T partnered with Salesforce to improve its customer experience. The partnership will see AT&T leverage the latter’s tools to provide a holistic experience for clients. That includes giving more intelligent and personalized recommendations, and improved routing of support cases. That said, would T stock be one of top 5G stocks to buy or sell?
Best 5G Stocks To Buy Or Sell: Nokia
Nokia (NOK Stock Report) has been seeing investors quietly snapping up its stocks. Ever since the company released its earnings report, shares of NOK have been on the rise. While the company was famous for its phone business, it no longer relies on the smartphone business. A bit of history is due here. In 2016, former Nokia employees started a company known as HMD Global, which licensed the “Nokia” brand name for mobile phones. Nokia itself is no longer involved in smartphones directly. That said, Nokia is still one of the leaders in 5G networking solutions, making equipment such as antennas and base stations.
Although the disruptions from the pandemic have dampened its revenue, the company’s financials remain solid as it is backed by strong demand for its new 5G telecoms equipment.
Nokia To Win 5G Business At Huawei’s Expense
With the US-China tensions being played up again amid Covid-19, Huawei’s loss is Nokia’s gain. This came as pressures from Western governments have been mounting on telco service providers to avoid and remove any Huawei 5G kits from existing networks. That leaves European 5G companies like Nokia and Ericsson (ERIC Stock Report) to take up the responsibility of supplying 5G network solutions. However, Nokia doesn’t necessarily have the financial and political backing that a company like Huawei may have. And this has created some speculation. That the US government could acquire a stake in the company to secure a strategically important technological asset. While that may be far-fetched, what is worth considering is that Nokia will continue to benefit from its equipment business. After all, many countries would prefer to purchase telecommunications equipment from manufacturers deemed as friendly. Would NOK stock continue to benefit as countries upgrade to 5G?