AT&T Fined $100M, Fitbit Tracks $3.7B Valuation, Fed to Raise Interest Rates
FCC to fine AT&T (T) $100 millionThe Federal Communications Commission said today that AT&T slowed down the Internet speed for consumers with unlimited plans once they used 5 gigabytes of data. These speeds were more than 20 times slower that the average advertised speeds. A $100 million fine would be the highest ever proposed by the FCC. As an evidence that the company has been fully transparent, AT&T points to a statement on its website that goes "well beyond the FCC's disclosure requirements.
Fitbit (FIT) expected valuation is $3.7BFitbit Inc. is a wearable device maker that allows users to track and share their activities, exercises, and calories. Shares are expected to start trading on NYSE this Thursday. Today a wearable devices maker has raised the estimated price of its IPO to $17 to $19 a share reaching a $3.7 billion valuation. Although tech IPOs have become a familiar sight on Wall Street, there are important differences when it comes to Fitbit. Not only does it have significant brand recognition, but the company has already shown revenue growth and annual profit. At the same time, some analysts question whether Fitbit can take on Apple's (AAPL) Apple Watch, a device that has some of the similar functionality. The IPO is led by Morgan Stanley (MS), Deutsche Bank (DB), and Bank of America Corp. (BAC).
Fed to increase interest rates this yearWhile the U.S. economy is growing, not all concerns have been lifted. The Fed announced today that while it was still on track to increase short-term interest rates later this year, markets were only looking at 0.1 percent or 0.25 percent increase. The Fed's benchmark interest rate has been near zero since December 2008.
Published on Jun 17, 2015By Adam Colgate