A large seller of Verizon Wireless, such as Vodafone, may very well consider doing so opportunistically, as the direction of margins in the ever-changing wireless market remain a question mark.
Moffett, who now heads independent research firm Moffett Research, cautions Verizon investors that any stake acquisition will come with long-term ramifications.
"Verizon would be doubling down at what feels to us to be a cyclical peak in both performance AND valuations; margins are at all-time highs, ARPU hasn't yet been impacted by Sprint's and T-Mobile's newly aggressive competition, and U.S. telecom stocks are levitating on interest rates rather than operations," Moffett wrote of a deal in mid-July after telecom firms posted their second results that indicated a turn in the industry.
"Verizon's management would have to live with the price paid for decades to come," Moffett warned.-- Written by Antoine Gara in New York. Follow @antoinegara
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