For the regular readers feel free to comment or do the normal, read through, and move on. You will see the "class post" a few times over the coming weeks as weare doing blogs for one of my grad school classes. Now for the meat of this post.
As we are covering current events in class and how they may affect management policy, I will be interested to see how the NSA issues work out with Bell South, AT&T, and Verizon. Verizon today announced they were only providing documentation in accordance with the law. Bell South has made similar comments, leaving AT&T as the only one of the three to not deny some form of shady involvement. Read more here. Not surpisingly Verizon's stock is down due to the knee jerk reaction of Wall Street, however, there could be a number of hefty lawsuits regarding privacy from this, depending on how it washes out. I will be keeping an eye on things and posting updates and my thoughts as we go.
2 comments:
According to the Wall Street Journal AT&T has now joined Verizon and BellSouth in refuting the allegations made by USA Today's anonymous, who claimed that the companies provided telephone call data for their customers to the NSA. (blog link)
I can't get to the WSJ article as it is subscriber only.
As for stock drops, the DOW went down big today due to inflation concerns. That should be taken into account when considering only the decline of Verizon.
Don't look at the DOW, typically the "DOW" is just a big 30 with some diversity. Granted it encompasses an array of companies now as opposed to true industrials as it was originally intended looking at the DOW can be quite misleading. A better overall perspective is the S&P 500 though it typically moves as an index as companies such as GE & Microsoft (which is not in the DOW 30) move. Not disagreeing with your comment about the entire market slumping today due to the news you mentioned but at time of post it was off nearly 2% which is somewhat significant.
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