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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWall Street Journal Upset Because Title II Didn't Hurt Stocks
Wall Street got that message loud and clear, and when the FCC yesterday announced tougher net neutrality rules (and its assault on protectionist state laws, for that matter), ISP valuations and Wall Street as a whole barely batted an eye. This apparently greatly annoyed Wall Street Journal author Miriam Gottfried, who demanded that Wall Street immediately become...more outraged:
quote:
After years of fearing it like the boogeyman, Wall Street may have gotten a bit too comfortable with the governments latest version of net neutrality...Investors were cheering the chairmans assurance that the commission wouldnt invoke the Title II power to regulate prices. But investors, beware: Broadbands new status opens the door to the possibility of a future that is far less lucrative and more uncertain for the companies that provide it.
http://www.dslreports.com/shownews/Wall-Street-Journal-Upset-Because-Title-II-Didnt-Hurt-Stocks-132789
Control-Z
(15,682 posts)onenote
(42,778 posts)First, its not as if investors woke up yesterday and discovered net neutrality rules had been adopted by surprise. Investors -- Gottfried, who is paid to follow the market and telecommunications -- must be a dunce of the first order to not understand that investors would already have taken the adoption of the rules into account over the past several weeks (if not months) as their adoption became inevitable. Moreover, the fact that the market over the past few weeks hasn't reacted in any significant way to these rules is consistent with the fact that, at least in the short run, despite the sky is falling rhetoric of those opposed to the rules, they won't really have a significant impact on ISPs bottom lines.
The fact that Gottfried seems not to understand either of these points reveals her to be utterly unqualified as the provider of advice about telecommunications or the stock market.
still_one
(92,433 posts)spewing about.
You are absolutely correct how events and actions are always factored into the market, and they have determined the impact will not have short term effect on profits.
djean111
(14,255 posts)providers will not be regulated as far as rates are concerned. Telling a few municipalities that they can go ahead and create their own infrastructure didn't hurt as much as if the FCC had gone ahead and given that option to everyone. And, yeah, not such a surprise.
former9thward
(32,093 posts)1) the regulations have not been released to the public yet so no one knows exactly what is in them and 2) whatever they are will be challenged by lawsuits and so will not go into effect for years.