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.
One more sign Alcatel-Lucent is in trouble.
About the Author
Andrew Tonner is a senior tech specialist for The Motley Fool. He is a graduate of The University of Arizona with a degree in Finance. Follow @andrewtonner