Apr 16, 2021 (StockMarket.com via COMTEX) -- These Communication Stocks Are Poised To Benefit From Pent-Up Demand
There are numerous communication stocks that have been performing well in the stock market since the emergence of the global pandemic. The communication sector comprises companies that focus on services such as video games, cell phone service, internet providers, television providers, and more. Most of the sector evolved as the pandemic affected everyone's lives. Since the world has been locked up at home, people are using online services much more than ever. This has caused many top communication stocks to increase in value that may have not otherwise.
Take Twitter, Inc ( NYSE: TWTR ) for example. With hundreds of millions of users on its platform, it has without a doubt played an important role in the communications sector. Twitter has been working on re-engineering its ad platform for several years. The company continues to explore the addition of subscription services and other paid features to supplement its advertising revenue. As you may have noticed, the stock has risen by over 30% this year at a time when many tech stocks have been under pressure.
Another communication stock that entered the limelight during the pandemic would be Zoom Video Communications Inc ( NASDAQ: ZM ). The rise of video conferencing was very apparent during the pandemic as most people could not connect physically anymore. Of course, most companies have realized that many tasks can be done remotely. With the convenience that comes with it, I won't be surprised if this habit sticks around after the pandemic. As the increasingly digitized world is fueling positive momentum in the space, do you have a list of top communication stocks to buy in the stock market today?
Best Communication Stocks To Watch
Verizon Communications Inc ( NYSE: VZ )
T-Mobile US Inc ( NASDAQ: TMUS )
Snap Inc. ( NYSE: SNAP )
Facebook Inc. ( NASDAQ: FB )
Verizon Communications Inc
First up, we have Verizon. The company is involved in communications, technology, and entertainment products and services. Verizon offers voice, data, and video services and solutions on its award-winning networks and platforms, delivering on customers' demand for mobility, reliable network connectivity, security, and control. On April 15, the company announced it will launch 5G internet for businesses in 21 U.S. cities this month. The wireless carrier started rolling out 5G services last year using lower spectrum bands, achieving speeds similar to those of T-Mobile but trailing AT&T.
From the company's fourth-quarter results, its wireless service revenue grew 2.2% year over year. The wireless service segment represents the largest revenue component of Verizon's business. In the fourth quarter, it contributed $16.7 billion of the company's $34.7 billion revenue. The company sees its wireless service and other revenue, which excludes equipment sales, as the big revenue driver in the years ahead.
Without a doubt, adoption of Verizon's 5G wireless network is expected to fuel that growth. The company's stock has been trading sideways for most of the past year. However, with these developments, would you consider investing in VZ stock now?
T-Mobile US Inc
Next up, we have wireless company T-Mobile. The company provides wireless services and generates revenue by providing affordable wireless communications to its customers. The company delivered spectacular 2020 financial results, helped by its merger with Sprint last April. Like Verizon, the heart of T-Mobile's strategy is in its 5G technology. As T-Mobile completes integration of Sprint's network into its own, these spectrum rights will play a key part in establishing a high-quality, expansive 5G wireless network. Over the past year, the company's stock has risen by over 40%.
It seems to me that T-Mobile is firing on all cylinders today. The company ended 2020 delivering strong results in the midst of a global pandemic. And its plans for the future speak to the continued customer and revenue growth. Recently, the company introduced a #5GforAll promotion, in which the company will give a free Galaxy A32 5G smartphone when you trade in any existing 4G mobile phone.
If you follow the company's development closely, or if you're an existing customer, you would know that this is not the first time the company gives out free goods and services to tempt its potential customers. Given how aggressive the company is and its excellent performance over the years, will you be watching TMUS stock now?