Latest news with #fiberexpansion
Yahoo
12-07-2025
- Business
- Yahoo
Ubiquiti Inc. (UI): A Bull Case Theory
We came across a bullish thesis on Ubiquiti Inc. on WorldlyInvest's Substack. As of 2ⁿᵈ July, Ubiquiti Inc.'s share was trading at $411.72. UI's trailing and forward P/E were 45.24 and 40.36, respectively according to Yahoo Finance. The thesis on UI argues that the market is materially underestimating the company's growth prospects and brand strength in a highly commoditized networking equipment industry. Ubiquiti operates with a highly differentiated business model, selling direct-to-consumer via online channels and an engaged user community. The networking industry is entering a major global upgrade cycle driven by U.S. fiber expansion, European fiber push, and 5G expansion. UI is uniquely positioned for this cycle, with products dominating remote areas and SMB markets. The analyst estimates UI's TAM is ~$246B, with enormous whitespace in Asia. The company has compounded revenue at ~26% CAGR since 2009, and runs at industry-leading efficiency. The base case projects 17.5% CAGR through 2027, with upside from Asia expansion and rising U.S./EU upgrade cycles. While this is our first coverage on Ubiquiti Inc., we've recently examined a on another stock in the same Communication Equipment industry that sheds light on similar long-term dynamics. In contrast to CSCO, which is poised to benefit from the AI-driven energy infrastructure supercycle and onshoring boom driven by tariffs, Ubiquiti Inc. (UI) is well-positioned to capitalize on the global upgrade cycle in the networking industry. Both companies operate in the Communication Equipment space, but their strategies diverge; CSCO is focused on providing critical energy infrastructure assets to power AI growth, while UI leverages its highly differentiated business model, selling directly to consumers via online channels and an engaged user community. Despite these differences, both companies are poised to benefit from significant trends in their respective markets, with CSCO riding the tailwinds of AI, tariffs, and nuclear energy, and UI dominating remote areas and SMB markets with its products. UI isn't on our list of the 30 Most Popular Stocks Among Hedge Funds. While we acknowledge the risk and potential of UI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Phone Arena
04-07-2025
- Business
- Phone Arena
After publicly thrashing AT&T, Trump now inspires the carrier to expand faster thanks to the OBBB
Just the other day, Trump was bashing AT&T in broad daylight, but today, Trump's One Big Beautiful Bill is what inspires AT&T to boost its expansion. Such is the business world. AT&T announced its plans to accelerate its fiber network expansion following the passage of the One Big Beautiful Bill Act. The new piece of legislation gives tax breaks to businesses and, among other things, makes more wireless airwaves available so companies can build faster internet and phone networks. It is meant to help create jobs, boost the economy, and keep the US ahead in technology. AT&T announced it expects to increase its fiber customer locations by an additional 1 million annually starting in 2026, crediting the bill's pro-investment policies and tax provisions for making this One Big Beautiful Bill Act, signed into law this week, is designed to spur innovation, ensure the United States remains competitive in the global technology race, and create new economic opportunities. Central to the legislation is the establishment of a pipeline of midband spectrum, which will help meet the growing demand for mobile data and enable faster, more reliable networks. The act also restores the Federal Communications Commission's auction authority, helping to unleash further development in the wireless sector. AT&T expressed appreciation to key political figures, including Senate Majority Leader John Thune, Senate Commerce Committee Chair Ted Cruz, House Speaker Mike Johnson, and House Energy and Commerce Committee Chair Brett Guthrie, for their role in advancing the bill. The company also thanked President Donald Trump for making spectrum availability and capital investment a priority during the reconciliation process. Image source – Truth Social Ironically, the news comes just days after Trump publicly criticized AT&T on Truth Social following technical difficulties during a conference call with Faith Leaders. Frustrated by the disruption, Trump urged AT&T to "get its act together" and suggested he might consider switching to another carrier for the next conference call. While AT&T responded to the incident via social media without offering detailed explanations, the remarks briefly impacted the company's stock, causing a temporary dip before stabilizing. The timing of Trump's criticism coincided with the Trump Organization's announcement of a new wireless venture, Trump Mobile, which aims to enter the market with a branded $499 smartphone and service that could operate across multiple major networks, potentially including AT&T 's own infrastructure. Some observers noted the coincidence, suggesting that as Trump positions himself within the telecom space, his influence on public perception and market dynamics could grow. AT&T has stated it will provide further updates on how the One Big Beautiful Bill Act will impact its 2025 financial outlook and long-term investment strategy when it reports its second-quarter results later this month. Switch to a 2-month Total 5G or 5G+ plan with Total Wireless and score this foldable deal. We may earn a commission if you make a purchase Check Out The Offer
