NEW YORK (TheStreet) -- Shares of Alcatel Lucent SA (ALU) are higher 3.60% to $4.03 after the company announced it completed the 100 gigabit upgrade of its Apollo undersea cable system, which links the U.K. and France to the U.S.
"The 100 gigabit per second upgrade enhances the system's capacity in support of the continued global explosion of data traffic and increased demand for capacity-hungry applications such as cloud computing and on-demand video services," the company said.
As a result of the upgrade the company said each transatlantic system can carry capacity in excess of 25 terabits-per-second, allowing Apollo a path to expand their networks in an efficient and cost effective way.
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TheStreet Ratings team rates ALCATEL-LUCENT as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALCATEL-LUCENT (ALU) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow."