Telecom stocks are falling on Friday as investors react to rumors that Amazon (NASDAQ:AMZN) is preparing to bring major competition to the market.
According to insiders, the e-commerce platform is allegedly in talks to offer inexpensive or free wireless phone service to customers that sign up for Amazon Prime. If true, that could steal away customers from larger telecom providers.
In addition to this news, there have been reports swirling that DISH Network (NASDAQ:DISH) is in talks to act as the provider of wireless services to Amazon’s customers. That could be a boon to DISH stock, as it would bring in more customers for its 5G service. DISH has spent years preparing for 5G with infrastructure upgrades.
Investors will note that Amazon has denied recent rumors that it plans to add mobile phone services to Prime. Even so, that doesn’t change the fact that investors in traditional telecom companies are wary about Amazon entering the field.
Telecom Stocks Down Today
- AT&T (NYSE:T) stock is falling 5% as of Friday morning alongside the reports.
- The idea of an Amazon phone service has shares of Verizon (NYSE:VZ) stock dropping 5% as well today.
- Investors in T-Mobile Us (NASDAQ:TMUS) also aren’t happy about the idea, with shares dropping this morning.
Investors will also note that reports of DISH Network working with Amazon on its wireless plans are boosting DISH stock. As of this writing, DISH shares are up 21.6%. Likewise, AMZN stock is climbing 2.3% higher on Friday morning.
There’s even more stock market news traders will want to know about below!
We have all of the latest stock market news traders need to know about on Friday! A few examples of that include why shares of Tesla (NASDAQ:TSLA) and Faraday Future Intelligent Electric (NASDAQ:FFIE) stock are moving, as well as what has the stock market up today. You can read more on these matters at the following links!
More Stock Market News For Friday
On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
