๐จ U.S. Telecom Stocks Are Sliding. I'm Staying Cautious.
AT&T, Verizon, and T-Mobile are under pressure in premarket trading.
I'm not rushing to buy the dip.
Here's why.
The market isn't reacting to earnings...
It's reacting to competition.
After SpaceX outlined plans to expand Starlink into a full mobile service, investors immediately started reassessing the long-term outlook for the traditional telecom giants.
My thesis is simple.
I'm bearish on legacy telecom until the market proves otherwise.
SpaceX doesn't need to win overnight.
It just needs to convince investors that the competitive landscape is changing.
That's enough to pressure valuations.
I'd rather wait for a confirmed reversal than try to catch a falling knife.
Do you think this selloff is an overreaction... or the start of a much bigger shift? ๐#ustelecomstocksfallpremarket
AT&T, Verizon, and T-Mobile are under pressure in premarket trading.
I'm not rushing to buy the dip.
Here's why.
The market isn't reacting to earnings...
It's reacting to competition.
After SpaceX outlined plans to expand Starlink into a full mobile service, investors immediately started reassessing the long-term outlook for the traditional telecom giants.
My thesis is simple.
I'm bearish on legacy telecom until the market proves otherwise.
SpaceX doesn't need to win overnight.
It just needs to convince investors that the competitive landscape is changing.
That's enough to pressure valuations.
I'd rather wait for a confirmed reversal than try to catch a falling knife.
Do you think this selloff is an overreaction... or the start of a much bigger shift? ๐#ustelecomstocksfallpremarket