We recently published a list of the 13 Best Telecom Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Liberty Broadband Corporation (NASDAQ:LBRDK) stands against other best telecom stocks.

The global telecom services market is estimated at $1.98 trillion as of 2024, according to Grand View Research. It is projected to grow at a CAGR of 6.5% from 2025 to 2030. This expansion is driven by the increasing expenditures on 5G infrastructure deployment, which is fueled by a shift in customer preference towards next-generation technologies and smartphone devices. Additionally, the rising number of mobile subscribers, the soaring demand for high-speed data connectivity, and the growing need for value-added managed services are key factors that contribute to this market growth.

Initially a trend in 2019, 5G has solidified its position as a critical driver of the industrial economy. The Future of Commerce reported that the global 5G connections are projected to surge from 1.76 billion in 2023 to 7.9 billion by 2028. This indicates that 5G will constitute over half of all connections, as per reports from 5G Americas and Omdia. This expansion is driven by investments from government and telecom companies, as well as the demand for faster internet speeds, lower latency, and improved battery life. While 5G deployment continues, 6G is emerging and promises ultra-high data speeds via terahertz spectrum bands, low latency, and AI integration. It aims to revolutionize communication through applications like smart grids and immersive XR experiences. However, challenges like energy efficiency and responsible AI integration remain. Telecom companies stand to capture a $100 billion opportunity within the 5G economy.

AI is deeply ingrained in the telecom sector as well. It evolved from basic echo cancellation in the 1950s to sophisticated algorithms for network management and failure prediction. In 2025, AI’s role will intensify, with global telco investments projected to rise from $3.34 billion in 2024 to $58.7 billion by 2032. AI is crucial in network topology improvements. It facilitates self-healing networks, automated transitions, and AR applications. It will drive 6G’s evolution towards connected intelligence and enhance predictive maintenance, fault detection, security, and customer experiences through predictive and cognitive AI.

Our Methodology

We used the Finviz stock screener to compile an initial list of top telecom stocks. We then selected the 13 stocks that were the most popular among elite hedge funds and that analysts were bullish on. The stocks are ranked in ascending order of the number of hedge funds that have stakes in them, as of Q4 2024. The hedge fund data was sourced from Insider Monkey’s database which tracks the moves of over 900 elite money managers.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A technician at a site of a fiber connectivity service installation, using tools to install the high-speed data networking that the company offers.

Liberty Broadband Corporation (NASDAQ:LBRDK)

Number of Hedge Fund Holders: 70

Liberty Broadband Corporation (NASDAQ:LBRDK) is a communications-focused holding company with investments in Charter Communications and GCI Holdings. It provides broadband, video, mobile, and enterprise services. Through its Charter segment, it delivers Spectrum-branded internet, TV, and mobile solutions, while GCI Holdings focuses on connectivity services in Alaska and caters to residential, business, and governmental clients.

The GCI segment of the company surpassed $1 billion in revenue for the first time in 2024. This was driven by a 5% increase in revenue during Q4 and a 4% increase for the entire year. This was fueled by strong data revenue, particularly from upgrades in rural Alaskan schools and healthcare corporations. While revenue surged, GCI experienced a slight decline in its consumer base, with a loss of 300 wireless subscribers and 4,900 cable modem subscribers. The latter is largely attributed to the expiration of the ACP program.

To support its expanding network, especially in rural Alaska, GCI invested $193 million in capital expenditures during 2024. For 2025, this investment is projected to increase to ~$250 million, with a focus on enhancing middle and last-mile connectivity. This proactive approach to rural connectivity is crucial for securing government funding and fulfilling the build-out requirements of the Alaska plan. GCI is set to be spun off from Liberty Broadband Corp. (NASDAQ:LBRDK) in late Q2 or early Q3 of 2025, becoming GCI Liberty.

Conventum – Alluvium Global Fund is positive on Liberty Broadband Corp. (NASDAQ:LBRDK) due to its continuous strong performance. Here’s what the fund stated in its Q3 2024 investor letter:

“Liberty Broadband Corporation (NASDAQ:LBRDK) (up 40.7%), has investments in the broadband sector via Charter Communications and GCI Holdings, which represents Liberty’s Alaskan operations. Charter announced pleasing second quarter results. So far it has retained the vast majority of the former Affordable Connectivity Program (ACP) recipients (but this is yet to fully play out), its mobile business is gaining further traction (with a strong reception to its phone upgrade and service plans), and good progress is being made on cost management. Both Liberty and Charter’s share prices rose (by 15.0% and 16.6%) on the release of these results. But there was no cause for any change to our analysis nor valuation – and both still appeared cheap to us. Then, later in the quarter Liberty received a proposal from Charter to consolidate the entities (but excluding GCI). Liberty provided a counter proposal at a higher exchange ratio and that included GCI (which Charter’s initial correspondence suggested may be entertained). Depending on how the value of GCI is accounted, the consideration difference is around 20-25%, which is not insurmountable in our view. The proposed simplified structure makes sense and is likely to be appreciated by investors on both sides. On the day this was announced, it was not surprising that Liberty’s share price was up 28.4%, and Charter’s fell marginally (down 2.5%). In our view, only now after the strong price gains is Liberty’s trading price getting close to fair value. Accordingly, no action was warranted and our Liberty position now stands at 7.1%.”

Overall, LBRDK ranks 6th on our list of the best telecom stocks to buy according to hedge funds. While we acknowledge the growth potential of LBRDK, our conviction lies in the belief that AI stocks hold great promise for delivering high returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LBRDK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.