Wall Street Knows Darn Well That FCC's Net Neutrality Rules Won't Harm Broadband: Stocks Went Up

from the in-case-you-were-wondering dept

For all the hubbub from the big broadband players about how having the FCC regulate broadband connections under Title II would kill off investment and harm their ability to innovate, Wall Street has always known that’s hogwash. While saying scary things to the press, all the big broadband companies were quietly (and sometimes not so quietly) telling investors that Title II wouldn’t really change anything. In the last couple months, I’ve seen a few different Wall Street analyst reports all basically saying that they don’t think the FCC’s rules will really have any impact at all on the bottom line for broadband players.

And, indeed, it appears the stock market acted accordingly. Following Tom Wheeler’s official announcement that the FCC would move to reclassify under Title II, all the key broadband players saw their stocks jump up, not down. If it was really that bad, you would have seen the opposite.

Now, you could argue that the market was already pretty sure what the FCC was going to do and had priced that into the stock prices — and it’s a fair argument as many of the stocks did see some decline at the beginning of the year as the likely rules became clear. But the idea that this was going to create some sort of bloodbath for investment and the internet doesn’t seem to be supported by the folks investing in those companies.

Filed Under: , , , ,
Companies: at&t, comcast, time warner cable, verizon

Rate this comment as insightful
Rate this comment as funny
You have rated this comment as insightful
You have rated this comment as funny
Flag this comment as abusive/trolling/spam
You have flagged this comment
The first word has already been claimed
The last word has already been claimed
Insightful Lightbulb icon Funny Laughing icon Abusive/trolling/spam Flag icon Insightful badge Lightbulb icon Funny badge Laughing icon Comments icon

Comments on “Wall Street Knows Darn Well That FCC's Net Neutrality Rules Won't Harm Broadband: Stocks Went Up”

Subscribe: RSS Leave a comment
15 Comments
Rudyard Holmbast says:

Jesus Christ, this site’s crusade on behalf of the FCC has gotten truly pathetic. Tech stocks go up on this particular day, so clearly “Wall Street” supports “net neutrality” rules. Give me a fucking break. And on the days most major tech stocks are down, something that will inevitably happen, soon?

On the issue of “net neutrality”, this site has entered into a Tanya Cohen-esque realm of parody.

Mike Masnick (profile) says:

Re: Re:

It is quite standard when there is big news likely to impact a company or industry for the stock to react accordingly. That doesn’t mean every up or down swing means something but reactions to big meaningful news is standard.

You are confusing (purposely?) a then b as b then a in your statement about tech stocks. I’m not saying all movement is meaningful but meaningful news does move stocks.

And for months we’ve been told that Title II would be a disaster for these companies. So if that were really true you’d see Wall Street run for the hills. But they didn’t. That says a lot.

Mr Big Content says:

Thats Because Their All Liberals

Look at the proper CONSERVATIVE Markets, NOT Wally Street, where the REAL smart Money is, and youll see people who KNOW how bad this Communist Dictatorial so-called Net Nutrality really is for business. Pearl Harbor was neutral, but that didnt stop Hitler invading. Itll be like that “Peace In Our Time” crapola all over again!!!

Violynne (profile) says:

Golly gee, Beave. You almost cussed in that title.

But you know, it would look a helluva lot better if you actually used the word “damn”. See, check it out:

Wall Street Knows Damn Well That FCC’s Net Neutrality Rules Won’t Harm Broadband: Stocks Went Up

Yeah, baby. Get Eddy over here and let’s go to a rumble.

>:]

I’m not sure why anyone would think stocks wouldn’t go up on a few companies which own respective monopolies while increasing prices, daily, to consumers.

John Fenderson (profile) says:

Re: Re:

Three points about that: first, there’s little reason to think that they would. Second, even if they did try, the effort would fail on first amendment challenges. Third, in the absence of some sort of regulation the major ISPs will certainly attempt to engage in censorship anyway — so even if your fear is realized, it isn’t a worse situation than would exist without regulation.

Add Your Comment

Your email address will not be published. Required fields are marked *

Have a Techdirt Account? Sign in now. Want one? Register here

Comment Options:

Make this the or (get credits or sign in to see balance) what's this?

What's this?

Techdirt community members with Techdirt Credits can spotlight a comment as either the "First Word" or "Last Word" on a particular comment thread. Credits can be purchased at the Techdirt Insider Shop »