Telcos Tremble as Views Cool on Wall Street

A wave of downgrades splashed cold water on steamy telecom stocks Friday.

Signaling some discomfort with AT&T's (T Quote) two-month, 57% rise, analysts at Goldman Sachs and Jefferies cautioned that Ma Bell's recent buoyancy ignores the company's sinking business outlook.

And while other stock watchers issued similar warnings about the regional Bell operating companies, one notable former bear turned positive.

The moves come in the midst of a sweet spring for tech stocks, as shares have marched higher despite persistent warnings from bearish observers that the fundamentals are being left behind.

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