February 7, 2013
Shares of French telecom conglomerate Alcatel-Lucent (NYSE: ALU ) fell hard today on news that CEO Ben Verwaayen will be stepping down. The stock had experienced a recent run after receiving a new $2.1B line of credit from Goldman Sachs and Credit Suisse. In this video, Motley Fool tech and telecom analyst Andrew Tonner tells investors why the company's recent surge isn't in line with the headwinds it's facing. He outlines some of the biggest trends in the industry that are driving down ALU's profitability, and says that, while the company has recently initiated an aggressive cost-cutting program, this alone would only slow the company's fall, rather than turn it around.
Another company facing some of the same headwinds as Alcatel-Lucent, as it looks to reinvent itself, is Nokia. Nokia's been struggling in a world of Apple and Android smartphone dominance. However, the company has banked its future on its next generation of Windows smartphones. Motley Fool analyst Charly Travers has created a new premium report that digs into both the opportunities and risks facing Nokia, to help investors decide if the company is a buy or sell. To get started, simply click here now.