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.
Andrew Tonner has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.