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August 16, 2017updated 27 Jan 2022 2:16pm

Ericsson and ZTE: stock performance can paint a confusing picture

By GlobalData Technology

Ericsson remains one of the top vendors in the telecom networks space. ZTE remains well outside the top three. Recent stock performance tells a different story.

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It isn’t always straightforward to connect a company’s new products, customer wins, or even quarterly earnings to their stock price.

Throughout 2017, Ericsson has struggled with declining sales, declining margins and negative operating income.

For the most part, though, its stock price has remained stable or has improved since January.

And while ZTE is generally considered as a relatively distant number four in the telecom networking space, its stock is up nearly 60 percent over the last year.

Stock prices may not correlate to market share, but if they convey stability to customers and provide a platform for investments, they could have a positive impact on commercial success – if not necessarily reflect that success.

Verdict deals analysis methodology

This analysis considers only announced and completed artificial intelligence deals from the GlobalData financial deals database and excludes all terminated and rumoured deals. Country and industry are defined according to the headquarters and dominant industry of the target firm. The term ‘acquisition’ refers to both completed deals and those in the bidding stage.

GlobalData tracks real-time data concerning all merger and acquisition, private equity/venture capital and asset transaction activity around the world from thousands of company websites and other reliable sources.

More in-depth reports and analysis on all reported deals are available for subscribers to GlobalData’s deals database.

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