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AT&T & Verizon Suspend Marketing Advertisements from YouTube
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U.S. telecom behemoths AT&T Inc. (T - Free Report) and Verizon Communications Inc. (VZ - Free Report) have decided to suspend their marketing campaign on Google’s YouTube site. The reason behind the decision is the appearance of their ads alongside offensive and highly controversial videos promoting adult contents, terrorism and hate speeches. Notably, Google is a division of Alphabet Inc. (GOOGL - Free Report) .
Yesterday, the two companies announced that they are suspending all their advertising from Google's non-search platforms, including YouTube as well as third-party websites that Google partners with. The withdrawal will stand until Google permanently solves the problem. So far, more than 250 companies have pulled their advertisements from YouTube including Johnson & Johnson (JNJ - Free Report) , the world’s biggest health-care company.
The decision of Verizon and AT&T is significant as telephone operators are among the biggest block of advertisers in corporate America. The two companies together spent $6.6 billion in advertisement in 2015. According to Kantar Media, Verizon and AT&T were the third and fourth largest ad spenders in the U.S. in 2016.
Importantly, the two telecom giants have withdrawn their ads from Google's non-search platforms only. However, Google’s search service generates the majority of its advertisement revenues which was a whopping $79.4 billion in 2016. Although Google doesn't disclose how much of its ad revenues came from YouTube, research firm eMarketer estimated it to be around $5.6 billion and has projected this figure to reach $7 billion in 2017.
At this stage, it is worth mentioning that Alphabet Inc. has been in a tussle with AT&T and Verizon during the last couple of years over several regulatory issues related to broadband and data privacy. The company has significantly stepped up investments in fiber-optic broadband and wireless technologies to increase competition.
Price Performance of Alphabet, AT&T and Verizon
Year-to-date, all three stocks have underperformed the Zacks categorized Computer and Technology sector. While Alphabet gained 7.24%, AT&T and Verizon have lost 2.05% and 6.88%, respectively, in the same time frame. In contrast, the Computer and Technology sector witnessed a gain of 8.66%. We believe this is the reason why all the three companies currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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AT&T & Verizon Suspend Marketing Advertisements from YouTube
U.S. telecom behemoths AT&T Inc. (T - Free Report) and Verizon Communications Inc. (VZ - Free Report) have decided to suspend their marketing campaign on Google’s YouTube site. The reason behind the decision is the appearance of their ads alongside offensive and highly controversial videos promoting adult contents, terrorism and hate speeches. Notably, Google is a division of Alphabet Inc. (GOOGL - Free Report) .
Yesterday, the two companies announced that they are suspending all their advertising from Google's non-search platforms, including YouTube as well as third-party websites that Google partners with. The withdrawal will stand until Google permanently solves the problem. So far, more than 250 companies have pulled their advertisements from YouTube including Johnson & Johnson (JNJ - Free Report) , the world’s biggest health-care company.
The decision of Verizon and AT&T is significant as telephone operators are among the biggest block of advertisers in corporate America. The two companies together spent $6.6 billion in advertisement in 2015. According to Kantar Media, Verizon and AT&T were the third and fourth largest ad spenders in the U.S. in 2016.
Importantly, the two telecom giants have withdrawn their ads from Google's non-search platforms only. However, Google’s search service generates the majority of its advertisement revenues which was a whopping $79.4 billion in 2016. Although Google doesn't disclose how much of its ad revenues came from YouTube, research firm eMarketer estimated it to be around $5.6 billion and has projected this figure to reach $7 billion in 2017.
At this stage, it is worth mentioning that Alphabet Inc. has been in a tussle with AT&T and Verizon during the last couple of years over several regulatory issues related to broadband and data privacy. The company has significantly stepped up investments in fiber-optic broadband and wireless technologies to increase competition.
Price Performance of Alphabet, AT&T and Verizon
Year-to-date, all three stocks have underperformed the Zacks categorized Computer and Technology sector. While Alphabet gained 7.24%, AT&T and Verizon have lost 2.05% and 6.88%, respectively, in the same time frame. In contrast, the Computer and Technology sector witnessed a gain of 8.66%. We believe this is the reason why all the three companies currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere
1 billion iPhones in 10 years but a new breakthrough is expected to generate more
than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging
phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may
kick yourself in 2020. Click here for the 6 trades >>