- Over the past year, the stock performance of ZTE and Ericsson has diverged, with ZTE’s share price up almost 60% over a year ago and Ericsson down almost 20%.
- With Ericsson being a traditional telecom networking leader and ZTE just outside the top three players in the market, their stock performance tells a broader story about the market’s view of telecom and market concentration.
Earlier this week, Verdict posted a ‘Research Wire’ comparing the stock performance of Ericsson and ZTE over the past year. The exercise was a relatively straightforward one. Where Ericsson had traditionally been the top player in the telecom networking space for many years, ZTE has struggled to break into the top three. More recently, Ericsson has suffered from sales declines and disruptive corporate re-organizations, while ZTE has been forced to pay over $1 billion in sanctions in the U.S., as well as reportedly laying off 3,000 employees. Continue reading “A Tale of Two Stocks: Ericsson and ZTE”