T - AT&T Inc.
35.44 +0.05 (0.14%)
Pre-Market: 7:15AM EDT
| Previous Close | 35.16 |
| Open | 35.24 |
| Bid | 35.29 x 21500 |
| Ask | 35.42 x 3200 |
| Day's Range | 35.08 - 35.50 |
| 52 Week Range | 26.80 - 35.50 |
| Volume | 21,395,214 |
| Avg. Volume | 28,430,146 |
| Market Cap | 258.595B |
| Beta (3Y Monthly) | 0.82 |
| PE Ratio (TTM) | 14.93 |
| EPS (TTM) | N/A |
| Earnings Date | N/A |
| Forward Dividend & Yield | 2.04 (5.80%) |
| Ex-Dividend Date | 2019-07-09 |
| 1y Target Est | N/A |
- Yahoo Finance Video
AT&T offers streaming service for $135 per month
AT&T is changing its online streaming service from DirecTV Now to AT&T TV Now; customers can get 125 channels for $135. Yahoo Finance's YFi AM discuss.
- TechCrunch
US cell carriers team up to combat robocalls — but no deadline set
Twelve cell carriers, including the four largest — AT&T, Sprint, T-Mobile andVerizon — have promised to make efforts to prevent spoofed and automatedrobocalls
- American City Business Journals
Atlanta is becoming the nation's esports capital
Cox Enterprises and Coca-Cola are among many companies that have invested into Atlanta's growing esports scene.
- American City Business Journals
Bud Peterson on 10 years at Georgia Tech: 'It's been a great run'
Peterson sat down with Atlanta Business Chronicle for a 90-minute interview, reflecting over his tenure as he prepares to turn over the reins to Angel Cabrera.
- American City Business Journals
Streaming roundup: Netflix dominance eroding amid Hulu, Amazon subscriber gains
Netflix is still far and away the most dominant player in the streaming industry. But the streaming platform is slipping in U.S. market share to rivals Amazon and Hulu.
- Market Realist
Netflix’s Streaming Dominance Is at a Crossroads, New Shows Coming
Netflix's streaming dominance will face its biggest test this September. Soaring competition is increasingly becoming a threat in the industry.
- InvestorPlace
Nokia Stock: Will There Be a 5G Payoff?
When Nokia (NYSE:NOK) last reported its earnings in late July, the shares got a nice boost. But the gains proved ephemeral. Consider that Nokia stock has gone from $5.70 to $5.14.Source: RistoH / Shutterstock.com But of course, disappointment has been common for the company. After all, for the past 15 years, the average return for NOK stock has been essentially 0%.Despite this, I actually think there is an opportunity here. In fact, the latest earnings report should be an encouraging sign that the company's transformation efforts are starting to show progress. In the quarter, revenues rose by a decent 7.2% to 5.69 billion euros, which handily beat the Street estimates. There was also a beat on the bottom line - that is, after adjusting for various good will and non-cash charges.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Marijuana Stocks That Could See 100% Gains, If Not More NOK even reaffirmed its full-year guidance. The earnings are expected to range from 0.25 euros and 0.29 euros per share in 2019 and 0.37 euros and 0.29 euros per share the following year. All in all, the company is certainly expecting more momentum.And the reason for this? It's the 5G megatrend. Carriers like AT&T (NYSE:T), Verizon (NYSE:VZ) and T-Mobile (NASDAQ:TMUS) are ramping up their efforts - and this means buying large amounts of telecom equipment.To get a sense of how strategic 5G is, just look at Apple (NASDAQ:AAPL). The company abruptly settled its massive lawsuit against Qualcomm (NASDAQ:QCOM) largely because it needs its 5G systems. Let's face it, if AAPL wants to remain a top smartphone marker, it has little choice but to get the max from next-generation networks.So yes, this is very good for NOK. Through is acquisition of Alcatel, the company is one of the world's largest equipment providers for 5G. 5G Timing and NOK StockOK, if the 5G opportunity is so great, why hasn't it done much for NOK stock? Well, it's important to keep in mind that the sales cycles are long in the industry. Before deciding on making large capital investments, telecom operators do quite a bit of due diligence.Next, 5G projects are multi-year endeavors. And they are risky. Even slight issues with execution can derail a project.But the good news for NOK is that next year there will be significant rollouts of 5G networks - and this should provide a nice catalyst for growth.Again, the latest earnings report provided key details on the traction. For example, the company announced 45 commercial 5G deals and nine live networks, such as with China Mobile (NYSE:CHL) and Sprint (NYSE:S). Interestingly enough, this is considerably more than rival Ericsson (NASDAQ:ERIC).Something else: The U.S.-China trade war will likely accelerate growth with NOK. Of course, Huawei has been a big target for President Donald Trump and this has caused quite a bit of disruption for the company. The result is that NOK should have more of an edge when getting new deals. Bottom Line on Nokia StockGranted, it's not easy to be bullish on NOK stock. The company's performance has certainly been choppy.But again, NOK has spent much time making significant changes in its business. Note that through next year, there are expected to be cost reductions of about $700 million euros.Even better, there should be improvement on the top-line as 5G hits critical mass. If anything, the buzz surrounding this technology should gin up lots of excitement.In other words, there's a good bet that NOK stock could finally get out of its funk - and fairly soon.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Nokia Stock: Will There Be a 5G Payoff? appeared first on InvestorPlace.
- American City Business Journals
State attorney general, telecom companies pledge to fight robocalls
Twelve major telecommunication companies — including Comcast and AT&T; — have joined with Shapiro to prevent illegal robocalls.
- Bloomberg
Phone Companies Strike Deal With States to Fight Robocalls
(Bloomberg) -- AT&T Inc., Verizon Communications Inc. and 10 other large phone companies have struck an agreement with 51 attorneys general to enact technology to block robocalls before they reach consumers.The deal, announced Thursday, will help protect consumers from receiving illegal robocalls, and assist law enforcement in investigating and prosecuting bad actors, said North Carolina Attorney General Josh Stein, who is leading the effort that includes all 50 states and the District of Columbia.Under the deal, the companies will launch the call-blocking technology at no cost to consumers, and make other free anti-robocall devices and apps available to subscribers. “By signing on to these principles, industry leaders are taking new steps to keep your phone from ringing with an unwanted call,” Stein said in a statement.The companies are under pressure to protect consumers against the unwanted calls, which are a top source of complaints with the U.S. Federal Communications Commission. Across the U.S. there were 48 billion robocalls last year, up from 31 billion in 2017, according to a tally by YouMail Inc., a developer of software that blocks the calls.In July, AT&T, Verizon and T-Mobile US Inc. said they were making progress toward installing technology to authenticate calls so consumers would know if the call is coming from the person supposedly making it. The FCC has demanded the technology be in place by the end of the year.FCC Chairman Ajit Pai said the agreements with the states “align with the FCC’s own anti-robocalling and spoofing efforts,” including the agency’s caller authentication standards.“Few things can bring together policy leaders across the political spectrum like the fight against unwanted robocalls,” Pai said in a statement. “The FCC is committed to working together with Congress, state leaders, and our federal partners to put an end to unwanted robocalls.”Consumers are often duped into answering phone calls because they appear to be from a local number or business.“The bad actors running these deceptive operations will soon have one call left to make: to their lawyers,” New York Attorney General Letitia James said in the statement.Companies InvolvedThe other companies signing the agreement are T-Mobile, CenturyLink Inc., Comcast Corp., Sprint Corp., Bandwidth Inc., Charter Communications Inc., Consolidated Communications Holdings Inc., Frontier Communications Corp., U.S. Cellular Corp. and Windstream Holdings Inc.The FCC has demanded that carriers adopt the system to digitally validate phone calls passing through the complex web of networks. The agency also has said that providers may block calls, and cast a preliminary vote to require the digital authentication if carriers fail to install it by year’s end.Several of the top U.S. carriers issued statements in concert with the state attorneys general announcement. While the group on a whole backed the effort, there were few if any new, specific anti-spam call actions or timelines mentioned.“It’s imperative that we stand together on a common set of goals that include stopping callers from hiding their identities, working with other carriers on efforts to trace back illegal calls to the source, and keeping the originators from sending robocalls in the first place," Verizon said in a statement.“The fight against the scourge of illegal robocalls requires all hands on deck, and we welcome and appreciate the support of the state attorneys general,” AT&T said in a statement.(Updates with carriers and FCC comment beginning in seventh paragraph.)\--With assistance from Erik Larson and Scott Moritz.To contact the reporters on this story: Jonathan Reid in Washington at jreid98@bloomberg.net;Susan Decker in Washington at sdecker1@bloomberg.netTo contact the editors responsible for this story: Jon Morgan at jmorgan97@bloomberg.net, ;Keith Perine at kperine2@bloomberg.net, Elizabeth WassermanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
- InvestorPlace
Will Disney+ Be the Next Catalyst for DIS Stock?
Disney (NYSE:DIS) stock has an extremely strong global entertainment brand and exciting growth prospects in streaming media. The House of Mouse has shown robust performance in 2019, and year-to-date, DIS stock is up about 24%.Source: ilikeyellow / Shutterstock.com However, August has not been a good month for Disney shareholders so far. And there will likely be further volatility and some profit-taking in the coming weeks. Therefore investors may want to consider waiting on the sidelines if they do not currently have any positions open in Disney stock.Alternatively, if they already own Disney, investors may either consider taking some money off the table or hedging their positions. As for hedging strategies, covered calls or put spreads with Sep. 20 or Oct. 18 expiry could be appropriate. Any short-term decline in DIS stock may offer a better entry point for long-term investors.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Disney Stock's Q3 EarningsOn Aug. 6, Disney stock reported earnings for the third quarter of fiscal 2019. It logged revenues of $20.25 billion on earnings per share of $1.25. However, DIS stock missed on both revenue and net income. * The 10 Best Marijuana Stocks to Buy Now Disney blamed the Q3 earnings miss on the current integration of Fox Corporation's entertainment assets, which it had acquired earlier in the year for $71 billion.Four segments contribute to Disney's revenue: * Media Networks (such as ABC and ESPN; about 33% of revenue) * Parks, Experiences and Products (such as Disneyland and cruise lines; about 30% of revenue) * Studio Entertainment (including Lucasfilm and Marvel; about 19% of revenue) * Direct-to-Consumer & International (including streaming services and advertising; about 18% of revenue)Results from Disney's operating segments varied. Media Networks unit reported revenue of $6.7 billion, showing a 21% year-over-year increase.Parks, Experiences and Products's revenue came at $6.6 billion during the quarter, with a 7% rise from Q3 2018. Nonetheless, analysts were concerned that there was lower attendance at Disney parks overall.Studio Entertainment segment reported revenue of $3.8 billion, a 33% increase from the same period one year ago. But this isn't a surprise. Most of our readers will be familiar with the fact that a number of Disney's movies have done extremely well in 2019.Direct-to-Consumer & International segment saw revenue of $3.86 billion during the quarter. However, its operating losses increased to $553 million from $168 million. The company blamed the losses on increased investments in ESPN+, Disney+ and Hulu streaming services.In August, Wall Street wanted to see whether the group's diversified revenue streams would remain robust for the second half of 2019. However, the quarterly report raised eyebrows and the stock price since then has been reflecting investors' worries. Content Development Will Be Expensive for DIS StockDisney's third-quarter results highlighted an important headwind that the company is facing in the rest of the year, i.e., increased costs.During the conference call, Disney management said that direct-to-consumer losses are likely to rise to $900 million in the fiscal Q4. The group will continues to invest in content for Disney+ as well as ESPN+ and Hulu.Disney+ will launch in November and feature content from various sources, including Disney, Pixar, Marvel, Star Wars. In the U.S., the service, which is likely to appeal to a wide range of viewers, will cost $6.99 a month or $69.99 a year. And the global launch of Disney+ will start in early 2020.Disney will offer U.S. consumers a bundle of Disney+, ESPN+ and an ad-supported Hulu subscription for $12.99 per month. Incidentally, that would be the same cost as Netflix's (NASDAQ:NFLX) standard subscription plan.Hulu will have have mostly adult content as opposed to Disney+, which will focus on kids and will not feature any R-rated movies. The bundle will launch alongside Disney+ on Nov 12. CEO Bob Iger said that Disney+ is not likely to have as much content as Netflix, which may become an important concern for investors, especially in the short run.All of these exciting developments in the streaming space have begun to cost Disney real money. Disney management has to ensure that the technical backbone of the streaming services works well. It also has to create content to keep the subscribers happy.Another way to think about the cost of producing original content is that until now, Disney was making money selling content to Netflix. Now it may have to spend serious cash every year to develop content. Of course, the list of competitors for DIS stock includes Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), and AT&T (NYSE:T), too.Many analysts are also wondering if the streaming space needs this many services. Could there also be a price war around the corner that could benefit the U.S. consumer, but not necessarily the stock price of Disney or of its competitors? Where Disney Stock Price is NowOver the past year, Disney stock price is up about 20%. Prior to 2019, between late 2015 and late 2018, DIS stock had not done much for shareholders as it hovered around the $100 per share level.Let us briefly remember how the stock has traded since early April: On Apr 11, prior to Disney's investor day presentation, the share price closed at $116.60. The next morning, DIS stock gapped up to open at $127.91. Then, on April 29, DIS stock reached what was then an all-time high of $142.37.In early May, Disney stock gave back some of its April gains, mirroring the stock market's volatility. On May 31, the stock saw $130.78. June and July were once again good to shareholders, as the stock reached an all-time high of $147.15 on July 29. Since then, investors have been taking money off the table and Disney stock is hovering around $135.As a result of the recent declines, the technical outlook of Disney stock has been damaged. Its short-term chart still looks weak, and DIS share price looks poised to exhibit even further volatility in the near-term.Despite this recent fall in the price of Disney shares, there might still be further declines. In the next several weeks, I expect DIS stock to be choppy and its price to decline below the $130 level, possibly toward $120. The Bottom Line on DIS stockSo what should investors think about Disney shares right now? The acquisition costs and the direct-to-consumer costs have been considerable. Yet Disney management is at this point ready to rack up losses in the streaming space. They are of course hoping to collect sizeable recurring revenue from subscribers both in the U.S. and worldwide. * 10 Marijuana Stocks That Could See 100% Gains, If Not More Therefore, investors will have to keep an eye on Disney's costs as well as other fundamental metrics in the coming months to see if the long-term prospects are still in place. Several bearish trends have recently been emerging in DIS stock. I'd say hold off investing in Disney shares until we have more data in the coming months. There might be a few more bumpy quarters ahead of us.At the time of writing, the author did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Will Disney+ Be the Next Catalyst for DIS Stock? appeared first on InvestorPlace.
- American City Business Journals
AT&T looks to part ways with Orlando property near airport
AT&T Inc. looks to sell nearly a dozen properties in Florida — including one in Orlando — which may lead to redevelopment opportunities. The Dallas-based telecommunications company (NYSE: T) will auction off its 3.4-acre property at 1501 S. Semoran Blvd. on Oct. 25. Tulsa-based real estate auction company Williams & Williams is organizing the AT&T property sales in Florida and across the U.S. The Orlando property features a roughly 27,000-square-foot industrial building built in 1974, according to Orange County records.
- InvestorPlace
Here’s Why Netflix Stock Might Win in the Recession
From a broader view, it's hard not to love Netflix (NASDAQ:NFLX). Starting life originally as a DVD subscription service, the company transitioned to the streaming platform. Since then, it has never looked back, enjoying its first-to-market advantage. Later developments, such as the production of original content, made Netflix stock all the more compelling.Source: Riccosta / Shutterstock.com But recently, this thesis is under severe threat. Last month, Netflix released its second quarter of 2019 earnings report. To say that it was a disappointment would be a grave understatement. While I'm not going to rehash old news, the key metric to focus on is the subscriber count. In the U.S. market, Netflix lost 100,000 subscribers when analysts expected it to gain 300,000. Unsurprisingly, NFLX stock tanked.Further, global net ads measured 2.7 million. This tally was substantially below analyst forecasts for five million. No matter how you break it down, Netflix stock lives on subscriber trends. That it fell short so spectacularly hurt sentiment.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut that's not all. Over the past several months, tech firms and traditional media companies have encroached into Netflix's arena, disrupting the disruptor. Most notably, Disney (NYSE:DIS) will launch its streaming service Disney+ this coming November. That's a double whammy for NFLX stock due to a loss of content and the addition of a rival. * 10 Marijuana Stocks to Ride High on the Farm Bill Furthermore, Disney will offer a bundled plan which encompasses Disney+, ESPN+, and ad-supported Hulu for $13. That's the same price as Netflix's "Standard" Plan.Beyond the Magic Kingdom, names like Comcast (NASDAQ:CMCSA) and Amazon (NASDAQ:AMZN) are aggressively ramping up their streaming inroads. Plus, NFLX is losing the popular show Friends to AT&T's (NYSE:T) WarnerMedia.Is it time to dump Netflix stock? Recession Worries Hits Netflix Stock HardOutside recession fears, I'm inclined to believe that the current fallout in NFLX stock is temporary. And by temporary, I would mean that it's a discounted buying opportunity.But in the past weeks, any optimism toward the U.S.-China trade war has evaporated. Additionally, the yield for 2-year Treasuries again moved above the 10-year yield. This inversion of the yield curve potentially signals a recession, yet the Federal Reserve is not acting decisively.While I don't want to get too wonky, these signs indicate that a recession is more likely than not. As an investment levered to consumer sentiment, this is a bad omen for Netflix stock.Now, the typical retort to this bearish assessment is that even in a downturn, people need entertainment. This is one of the reasons why I think AMC Entertainment (NYSE:AMC) makes a viable contrarian case. Certainly, compared to traditional TV subscriptions, Netflix is dirt cheap. And people will give up almost anything before they give up their internet, which is a digitalized society's lifeblood.Unfortunately, the robust streaming competition presents a new kink to this logic. In a bullish economy, consumers would probably buy two or even three streaming services. Even at $39, for example, this is much cheaper than traditional TV providers' post-introductory subscription specials.But in a recession? That's when consumers will start belt-tightening. They probably won't get rid of streaming altogether. However, they may not unnecessarily bundle competing services. Thus, it becomes a race to see who can offer the best content at the best price.Naturally, this makes stakeholders of Netflix stock nervous, especially after the disastrous Q2 report. Seemingly, subscribers are getting tired of the company's original content. And streaming is known for fickle viewers. The Risky Case for NFLX StockIf push comes to shove, though, I'd gamble that Netflix will rise above the streaming fray. Why? It goes back to original content.Currently, millennials represent the biggest demographic in the U.S. workforce. That probably won't change in a recession. Therefore, the people who are most savvy to streaming content are also the ones earning a paycheck.Ultimately, this benefits Netflix stock because the streaming giant has truly captured the millennial's attention span. When people watch various shows and programs, they're mostly doing so through Netflix.Additionally, NFLX features a wide range of gritty and compelling drama, stuff that millennial subscribers go wild over. And let's not forget that the company has the Midas touch in terms of producing relevant, award-winning content.Of course, I'm not completely crazy. This is still a risky proposition given the Q2 results. But it's not entirely out of the question that Netflix stock can ride out a downturn. Thus, if you want to take a measured gamble, I don't think it's a bad idea.As of this writing, Josh Enomoto is long T and AMC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Hereas Why Netflix Stock Might Win in the Recession appeared first on InvestorPlace.
- InvestorPlace
The Concerning Combination Pressuring Netflix Stock
Since its disappointing earnings report last month, Netflix (NASDAQ:NFLX) stock has declined 17%. And the pressure hasn't let up of late: Netflix stock has reached its lowest levels since last December.Source: Flickr via Mike K.It's not difficult to see why. Netflix stock is a story based on subscriber growth, as I wrote after NFLX reported disappointing user metrics in last year's second quarter. And its numbers on that front were terrible in its recent Q2 report.With Netflix stock now back below $300, some investors might see a "buy the dip" opportunity at this point. The growth of streaming is going to continue, and NFLX remains the leader of that market. Indeed, I've recommended buying NFLX stock on weakness in the past; in November, I called the stock the best contrarian bet in tech.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut this is a different situation. The selloff late last year was driven by external factors - most notably, a plunging stock market that dragged down many, if not most, highly-valued growth stocks with it. NFLX itself was performing reasonably well. And in fact, there was (and is) an argument that Netflix stock would benefit from a recession, which might accelerate cord-cutting as consumers look to save money. * 10 Marijuana Stocks That Could See 100% Gains, If Not More The recent selloff of Netflix stock is based on the company's performance, however. And as weak as that performance looked in Q2, when combined with what's going on elsewhere in the U.S. content sector, it's something close to disastrous. As a result, it can get worse before it gets better for Netflix, and for Netflix stock. Q2 Subscriber Numbers Hammer NFLX StockNetflix's headline numbers actually looked solid. GAAP EPS of 60 cents beat consensus expectations by 4 cents. Revenue of $4.92 billion rose 33% and was in-line with analysts' average estimates.But the subscriber figures were the big issue for Netflix stock, and led to a 10.3% decline by NFLX stock. Net paid subscriber additions of 2.7 million badly missed the company's guidance of 5 million. As a helpful chart in the Q2 shareholder letter showed, that was the biggest miss relative to guidance since at least the beginning of 2016.And it was the U.S. market that caused the miss. Netflix's U.S. paid subscriber count actually declined in the quarter for the first time since 2011.That alone likely drove investors to flee Netflix stock. But NFLX has continued to fall, dropping another 8% from its immediate post-earnings levels. That continued decline may come from a growing realization that the quarter was even worse than investors initially realized. The Content Question for NFLX StockOne of the reasons that Netflix stock has been so divisive is that the company continues to burn cash. Its content spending is expected to come in above $15 billion this year.That spending makes some sense. Instead of licensing content - and paying for it annually - NFLX essentially is buying its content upfront. Free cash flow now might be negative, but if that content drives subscriptions down the line, its free cash flow several years from now will be higher, making the near-term investments worthwhile.But that strategy only works if subscribers will stay with NFLX for a long time, allowing that content to be monetized in future years. That alone makes the Q2 subscriber decline concerning. So does a widely-cited passage from the company's shareholder letter: "We think Q2's content slate drove less growth in paid net adds than we anticipated."If that's the case, NFLX has a problem. It means the company can only keep adding subscribers if it continues to spend a great deal on content That sounds an awful lot like the old joke about selling at a loss, and making it up on volume. If Netflix's content budgets can't come down, free cash flow will stay negative or at best modestly positive. And that does not support the market capitalization of NFLX stock, which still sits at $130 billion. Where Are the Cord-Cutters Going?There's another major concern about Netflix's Q2 results. Specifically, Netflix's weak performance came at the same time that cord-cutting appears to have accelerated.Indeed, legacy cable companies had a horrible quarter. AT&T (NYSE:T) lost almost 1 million video subscribers. Comcast (NASDAQ:CMCSA) and Charter Communications (NASDAQ:CHTR) lost a combined total of nearly 400,000 viewers.Industry analyst MoffettNathanson called the quarter "freaking ugly" for cable companies and projected an unprecedented 5.5% cord-cutting rate in the quarter.So the question relative to Netflix numbers is: where are these subscribers going? One answer might be Hulu, now majority-owned by Disney (NYSE:DIS). At the Disney Investor Day in April, the company said Hulu had more than 25 million paid subscribers. Earlier this month, the company said the figure was "approximately 28 million."Whatever the case, Netflix should have been set up to have a blowout Q2 on the subscriber front in the U.S. Instead, it posted a stunning decline. In that context, its performance looks even weaker, and more concerning, than a simple guidance miss. The Competitive Concern for Netflix StockI wrote ahead of NFLX's Q2 results that the earnings report was critical for Netflix stock. And a key reason is that new competition is on the way from Disney, AT&T, and Comcast.Netflix, in its shareholder letter, wrote that it didn't think competition was a key factor in the disappointing subscriber numbers. That may well be true. But competition will be a factor in 2020, when those streaming services - with a great deal of content, backed by high marketing budgets - come online.And so investors can rightly wonder: if Netflix's U.S. subscriber growth is stalling out already, what happens when its competition increases next year? Real ConcernsNetflix stock bulls might respond that the U.S. isn't Netflix's only market. That's true: the company now has more subscribers overseas than in the U.S. More of its revenue comes from overseas as well.But about two-thirds of its profits still come from the U.S.. America is still the company's key market. And with NFLX stock trading at 53 times analysts' average 2020 EPS estimate, a stumble in the U.S. is likely to prove damaging for Netflix stock.On the other hand, the company's Q3 guidance was strong, and it's possible NFLX can bounce back. But its Q2 performance raises real questions and suggests more downside for Netflix stock could be ahead. It's the type of quarter that raises concerns about the company's overall strategy and market positioning, as well as the valuation of NFLX stock.And that's why it's been the type of quarter that leads not only to a big post-earnings decline, but more selling in the following weeks. Investors who buy the dip of Netflix stock do so at their peril.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post The Concerning Combination Pressuring Netflix Stock appeared first on InvestorPlace.
- InvestorPlace
Jeff Clark’s Market Minute: World War 5G
Mike's Note: For the past week, we've featured Jeff Brown's insights on the 5G wireless network rollout. Thanks to his direct connection to Silicon Valley's inner circle, and his decades of experience in the technology sector, Jeff's able to uncover big tech news before it hits the mainstream media.Source: Shutterstock Earlier, he showed us why this tech isn't just an investment megatrend, but a "winner-take-all economic struggle."Read on below as Jeff continues to dive into why deploying this technology is a must-win race for the U.S… and a smart move for our national security…InvestorPlace - Stock Market News, Stock Advice & Trading TipsBy Jeff Brown, Editor, Exponential Tech InvestorIn the summer of 2018, Boston-based cybersecurity firm Cybereason discovered something troubling… * 10 Marijuana Stocks That Could See 100% Gains, If Not More The company exposed a massive international espionage campaign that had hacked into at least 10 major wireless carriers.The hackers wanted to track around 20 high-profile political and military figures - including monitoring their phone calls, texts, and physical locations. It's something right out of a spy movie.This campaign (called Operation Soft Cell) had been going on for years. And based on the data, it appeared to be a nation-state attack - by China.Now, Cybereason didn't release the identities of the targets. It's too dangerous. And while we don't know for sure, prominent Western targets are a safe bet.But all this info was revealed to key U.S. government officials around the same time they started banning 5G tech and networking equipment from China's Huawei and ZTE.And today, I'll share why the ban was a smart move for our national security - and what it means for investors… The Next Generation of Wireless TechYou see, I've been tracking the 5G space very closely. It's the next evolution of wireless networks. And these new networks are going live on a weekly - and sometimes, daily - basis.On average, 5G will deliver mobile speeds 100 times faster than the 4G networks we connect to today. And having the fastest possible communications network on the planet is critical for economic growth and strength…Consider this: The economic impact of 5G will be in the range of three to five times more than the 4G wireless buildout.With 5G, as much as $275 billion will be invested by U.S. wireless carriers. Roughly three million jobs will be created in the U.S. And we can expect approximately $500 billion in GDP growth, too.At an industry level, expect $200 billion invested per year through 2025.So it's no wonder President Trump is eager to push the 5G wireless buildout forward.In fact, early last year, the current administration "threatened" to build out its own national 5G network if wireless carriers couldn't get it done. And my suspicion is that it was a warning.The White House was saying, "Get out there and build these 5G networks quickly - or we'll do it for you." It was lighting a fire under private companies involved in the 5G buildout.And it worked…Verizon just launched 5G in four more U.S. cities: Atlanta, Detroit, Indianapolis, and Washington, D.C. So President Trump and America's senators will now have access to blazing-fast 5G.Now, some of us might be thinking that this early 5G coverage launch in D.C. isn't a coincidence. And we'd be absolutely right…Putting 5G tech in the hands of busy policymakers demonstrates progress. After all, the president has made his intentions on 5G very clear. In April, he said:The race to 5G is a race America must win, and it's a race, frankly, that our great companies are now involved in. We've given them the incentive they need. It's a race that we will win.And America winning this 5G race could be a matter of national security… Wireless World WarHere's what I mean by that: Countries leading the way in deploying 5G networks will have a competitive advantage over others.And the tech companies in these "first-mover" countries will be the first to develop the hardware and software enabling these 5G wireless services.Now, the fear is that China will set the 5G precedent. It'd leave America dependent on Chinese 5G infrastructure. The U.S. would be vulnerable to further cyber-spying.That's why Cybereason's discovery of Operation Soft Cell was alarming. And it's why the government further determined equipment from Huawei and ZTE was a security threat.Now, given the scale and origin of the operation, the ban looks like a smart move.Plus, the president is now insistent on getting America's 5G networks built out quickly - by American and European firms.And for investors, here's the bottom line…Behind the scenes, the world's top superpowers - the U.S. and China - are waging a war for 5G supremacy.So 5G is an unstoppable trend. And companies providing the necessary tech for these 5G networks will benefit.American Tower (NYSE:AMT) is one of these wireless communications infrastructure companies. It builds and maintains communications infrastructure like cell towers.It was instrumental in the 4G buildout that started in 2011. And it's also heavily involved in erecting and maintaining the towers used in the 5G buildout.Right now, investors should be looking at companies like American Tower that provide critical network infrastructure. These key 5G stocks will soar.Keep this trend on your radar. I expect 5G to be the best investing opportunity of the next decade.Regards,Jeff Brown Editor, Exponential Tech InvestorP.S. Investors who miss the 5G boom will regret it for the rest of their lives. I expect key 5G stocks to soar as much as 10x - perhaps higher. 99% of investors will miss this chance. I encourage you not to be one of them.That's why I'm hosting the 5G Investment Summit tonight at 8 p.m. ET. I'll reveal my stock-picking method for finding the fastest-moving 5G stocks. I'll even give you the name of my No. 1 5G company to add to your watchlist.I haven't revealed this research anywhere else. And the only way to claim it is by signing up right here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Jeff Clark's Market Minute: World War 5G appeared first on InvestorPlace.
- InvestorPlace
Trump Incentivizes Top Wireless Carriers to Build America’s 5G Network
Chris' note: There's a lot of excitement building around my colleague Jeff Brown's 5G summit. It kicks off tonight. And there's still time to secure your slot. Just follow this link and add your name to the guest list.Source: Shutterstock For today's dispatch, we're handing the reins over to Jeff. Below, he digs into why 5G is not only an unstoppable investment trend, but also a matter of national security. In fact, as you'll see, 5G is on President Trump's radar right now as a top national security priority…Last summer, a Boston-based cybersecurity firm called Cybereason discovered something disturbing…InvestorPlace - Stock Market News, Stock Advice & Trading TipsIt was a massive espionage campaign targeting at least 10 major wireless carriers around the world.The hackers were tracking about 20 political and military targets. They were collecting data from these carriers about the targets' phone calls, texts, and physical locations.It's right out of a spy movie. * 10 Marijuana Stocks That Could See 100% Gains, If Not More This campaign - dubbed Operation Soft Cell - had been going on since 2012. And Cybereason says all the evidence points to the culprit being a hacker crew working for Chinese intelligence.Now, we don't know who the Chinese spies were targeting. That's still top-secret information.But what's clear is that key Trump administration officials got wind of this campaign around the same time they started banning 5G networking equipment from two Chinese firms: Huawei (pronounced "wah-way") and ZTE.Today, I'll show you why the ban was a smart move for our national security. I'll also show you some of the specific ways you can profit from the 5G boom.Next-Generation TechI've been tracking the 5G space for my readers since 2017.It's the next evolution of the wireless networks that connect your smartphone to the internet. These new networks are going live on a weekly - and sometimes daily - basis.On average, 5G will deliver speeds 100 times faster than the 4G networks we use today.And having the fastest possible communications network on the planet is critical for our economy.That's why U.S. wireless carriers will invest as much as $275 billion in 5G networks. This will create about 3 million jobs for Americans. And 5G will add about $500 billion to U.S. economic output.At an industry level, expect $200 billion invested every year through 2025.That's why 5G has gained an influential supporter…Trump Is Backing 5G TechPresident Trump is eager to speed up the 5G wireless build-out.Early last year, his administration threatened to build its own national 5G network if wireless carriers couldn't get it done.My suspicion is that it was a warning.The White House was telling Verizon (NYSE:VZ), AT&T (NYSE:T), and T-Mobile (NYSE:TMUS), "Get out there and build these 5G networks quickly - or we'll do it for you."In other words, it was lighting a fire under private companies involved in the 5G build-out.And it worked…Verizon just launched 5G in Atlanta, Detroit, Indianapolis, and Washington, D.C. So President Trump and America's senators will now have access to blazing-fast 5G.Now, you may be thinking this early 5G coverage launch in D.C. isn't a coincidence. And you'd be right…But putting 5G tech in the hands of policymakers demonstrates progress. After all, the president has made his intentions on 5G clear. In April, he said:The race to 5G is a race America must win, and it's a race, frankly, that our great companies are now involved in. We've given them the incentive they need. It's a race that we will win.And the president is right…Wireless World WarCountries leading the deployment of 5G networks will have a competitive advantage over their rivals.And the tech companies in these first-mover countries will be the first to develop and sell the hardware and software for 5G wireless services.Remember, new technologies such as self-driving cars and fleets of remote trucks depend on the data speeds 5G brings.Now, the fear is that China will take the lead. That would leave the U.S. dependent on Chinese 5G infrastructure. We'd be vulnerable to more cyber spying from Chinese spies.That's why the president wants the country's 5G network built out quickly. And it's why he wants it to be built by U.S. and European firms.As I've been showing you, 5G is an unstoppable trend. And companies providing the necessary tech for these 5G networks will benefit.What to Do NowI've been recommending my readers look at companies that provide critical network infrastructure.Take American Tower (NYSE:AMT). I put it on my readers' radars in July 2018.AMT builds and maintains wireless network infrastructure such as cell towers.The firm played a key role in the 4G build-out that started in 2011. Today, it's also involved in putting up the towers used in the 5G build-out.And it's been a great stock to own.But that was just the first phase of the 5G boom.My research shows that the third and final phase is going to be the most profitable by far.During the 4G era, individual stocks soared 868%, 1,745%, and even 3,200%. I believe the biggest winners during the final phase of the 5G boom could soar even higher with time.I'll be revealing full details of my market "script" for 5G today, August 22 at 8 p.m. ET.That's when I'm hosting my free 5G investment summit, The Final Phase of the 5G Boom.I'll show you why the final phase I've identified is set to be so profitable. And I'll give you my checklist for picking the best 5G stocks. I'll even give you the name of my No. 1 5G watchlist company.I hope to see you there. You can save your spot here.Regards,Jeff Brown Editor, Exponential Tech Investor More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post Trump Incentivizes Top Wireless Carriers to Build Americaas 5G Network appeared first on InvestorPlace.
- Zacks
Telecom Stock Roundup: Verizon-AT&T TV Strategies, Qualcomm's Patent Deal & More
Verizon (VZ) and AT&T (T) are deploying divergent TV service strategies, while Qualcomm (QCOM) inks a new licensing deal with LG Electronics.
- InvestorPlace
The Battle for 5G Supremacy
Mike's Note: As we've shown you for the past week, our friend and colleague Jeff Brown has his ear to the ground on what he's calling the biggest technological leap - and money-making opportunity - of the next decade: the rollout of 5G networks.Source: Shutterstock And as Jeff shows below, this is more than just a profitable investment trend. Read on to find out how the race to build 5G networks is a matter of national security… and why it's a must-win race for the United States…By Jeff Brown, Editor, Exponential Tech InvestorInvestorPlace - Stock Market News, Stock Advice & Trading TipsThe United States and China are locked in a winner-take-all economic struggle. * 10 Marijuana Stocks That Could See 100% Gains, If Not More And no, I'm not talking about the ongoing trade negotiations. It's something else.Whoever wins will be the economic powerhouse of the next decade. The stakes are that high.Let me tell you what I mean… Hostile TakeoverLast year, we almost saw a merger between technology firms Broadcom (NASDAQ:AVGO) and Qualcomm (NASDAQ:QCOM). Had it gone through, it would have been the largest tech deal to date.Broadcom had been pursuing Qualcomm since November 2017. It initially offered an unsolicited bid of $103 billion to acquire controlling interest of Qualcomm.Qualcomm resisted. So Broadcom took another route.It initiated a hostile takeover of Qualcomm. That's when an acquiring company attempts to bypass its target's board and purchases a controlling interest in the company directly from shareholders. Very often, this means offering to buy shares at a premium.At $117 billion, the new bid for Qualcomm would have represented the largest technology merger in history.But then the White House stepped in… President Trump blocked the merger. The president said that "credible evidence" suggested that the takeover would pose a risk to U.S. national security.The official details are classified. But I believe I know why the White House took this unprecedented step.At the heart of the president's decision to block the merger is fifth-generation (5G) wireless technology.And here's why that's important… The Coming Wave of 5GWhen you connect to the internet on your computer, smartphone, or smart TV, a vast physical communications infrastructure makes that connection possible.And over the years, our wireless networks - and the infrastructure that supports them - have evolved.It all started in the 1980s with first-generation (1G) networks. Compared to what's possible today, it didn't allow much. You could only place voice calls - there was no layer for carrying other types of data. And you had to use one of those brick-sized cell phones Gordon Gekko yaps into in the movie Wall Street.But from then on, a new network generation went live roughly every 10 years. Each provided faster download speeds and more applications. The most recent one, 4G, went live around 2011.Now we're shifting to the fifth generation of wireless networks - 5G. And it represents the largest leap in wireless technology to date. A Leap ForwardThe current 4G networks are a disappointment.The developers that built the 4G network thought it would deliver average download speeds of 100 megabits per second (Mbps). But in reality, many people see much lower speeds.[Megabits per second, or Mbps, is a common measurement for internet connection and download speeds. For example, to stream a high-definition video from Netflix, you need a download speed of at least 5 Mbps.]At the time of writing, the U.S. has an average download speed of about 16 Mbps with LTE connections. According to a 2018 OpenSignal report, we're in 62nd place, behind Romania (at 28 Mbps) and Finland (at 26.6 Mbps). Even Dracula and the reindeers have internet speeds faster than most Americans.But with 5G, the peak speed jumps to 10 gigabits per second (Gbps). One gigabit is 1,000 megabits. So at peak speed, 5G will be 1,000 times faster than the average 4G connection we have today.Even if we just assume that average 5G speeds would be 10% of their potential, we're still looking at 1,000 Mbps. That means that average 5G speeds will be 100 times faster than what we have today.With that kind of speed, you'll be able to download a two-hour movie in 10 seconds. Dropped phone calls and slow-loading web pages will be a thing of the past.Plus, some previously "sci-fi" tech will finally become a reality. Technologies like self-driving cars, virtual reality, and holographic projection will all operate over high-speed 5G connections. The applications are endless.5G is a game-changer because of all the technological innovation it will bring about. It'll be responsible for $12 trillion worth of new goods and services by 2035. That's about 70% of America's total GDP in 2018.And here's why the government considers the completion of 5G a matter of national security… Matter of National SecurityCountries that lead the way in deploying these networks will have a competitive economic advantage over other countries. And the technology companies in these "first-mover" countries will be the first to develop the hardware and software enabling these 5G wireless services.Right now, the government's fear is that China will set the 5G precedent.For context, Chinese company Huawei supplies the infrastructure and support for more than half of the 537 4G networks around the world. And suspicions have abounded for years about the company using its technology to spy on U.S. network traffic. And since 2018, tensions are reaching new highs.This led to Huawei being banned for a time from the U.S. and several other Western markets over spying concerns.The U.S. government sees it as an imperative that U.S. wireless networks are built out quickly - with U.S. and European technology - to ensure that the country's networks are less likely to fall victim to foreign espionage.That's why the Trump administration blocked the Broadcom/Qualcomm merger.You see, while Broadcom recently stated its intention to bring most of its business back to the U.S., the bulk of its business is still based in Singapore. And while Singapore is its own country, it's heavily controlled by Chinese Singaporeans.The concern was that Broadcom would force Qualcomm to cut back on its research and development into 5G, letting Huawei fill the void and making U.S. wireless networks vulnerable to cyberspying.This isn't wild speculation, either.The Committee on Foreign Investment in the United States, a government agency that oversees foreign investment in American companies, addressed this issue. It specifically mentioned the threat posed by Huawei in the 5G space when officially recommending the blocking of the Broadcom/Qualcomm merger.The Trump administration even threatened to take things one step further… Nationalized InfrastructureIn January 2018, leaked White House documents showed that the U.S. government was considering nationalizing the 5G network build-out - in other words, seizing control of wireless networks from AT&T (NYSE:T), Verizon (NYSE:VZ), and other service providers… and putting them in the hands of the government.I had a hunch at the time that this was just a warning… a way to light a fire under the U.S. companies involved in the 5G build-out.The Trump administration was saying, "Get out there and build these 5G networks quickly, or we'll do it for you."And I was right. Trump has since said he opposes nationalizing the U.S. 5G network.But sending a warning was a very smart move by the administration. And it worked.Verizon and AT&T - along with T-Mobile and Sprint, which are in the process of merging - are already building out 5G networks in dozens of cities around the country.The hope is to have the U.S. regain leadership in wireless network deployments, which will stimulate even stronger leadership in wireless network technology.If the U.S. fails, the government fears that America would be dependent on Chinese technology to make use of 5G. That would give China an enormous amount of leverage over the U.S.Not to mention, 5G is expected to create more than $12 trillion in wealth. Whoever sets the 5G precedent will be the economic powerhouse for the foreseeable future.This is a race the United States must win at all costs.Regards,Jeff Brown Editor, Exponential Tech InvestorP.S. The 5G race is far from over… In fact, it's just getting into full swing.That's why I'm hosting the 5G Investment Summit today, August 22 at 8 p.m. ET. I'll show you why investing alongside the 5G rollout is a once-in-a-decade opportunity. Key 5G stocks will soar 10X at least. I'll reveal how I spot these winners. And I'll even give you the name of my favorite 5G company on my watchlist. Reserve your spot here. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks That Could See 100% Gains, If Not More * 11 Stocks Under $10 to Buy Now * 6 China Stocks to Buy on the Dip The post The Battle for 5G Supremacy appeared first on InvestorPlace.
- Investor's Business Daily
Cable Firms Shrug Off Video Losses By Playing The Broadband Card
Despite video subscriber losses, Comcast and Charter are finding more love among investors than telecom rivals AT&T; and Verizon. Their dominance in broadband services to homes is why.
- Bloomberg
Buying HBO Was the Easy Part for AT&T
(Bloomberg Opinion) -- Three years ago this month, Hollywood executive Peter Chernin and AT&T Inc. CEO Randall Stephenson shared a dinner on Martha’s Vineyard. Stephenson is still waiting for his dessert to arrive. It was the meal that sparked the idea for Stephenson, a practically lifelong member of the staid telephone industry, to enter the TV and film business by acquiring Time Warner, a then-$60 billion giant of the media world. After Stephenson struck the deal, he told Bloomberg News that it was Chernin who “first got me to appreciate the library that this company owns.” That library includes HBO, with hits like “Game of Thrones” and “Succession;” the Warner Bros. studio, which that year had an almost 17% share of the box office; and the rights to “Friends,” a sitcom that hasn’t aired fresh episodes in more than 15 years but has taken on new life as the Holy Grail of the streaming-TV market.In June of last year, 601 days after the companies agreed to merge, Time Warner officially became part of the Dallas-based wireless-phone carrier, defeating an attempt by the U.S. Justice Department to block the transaction. AT&T’s WarnerMedia division, as the Time Warner assets are now called, is seen as one of the biggest threats to Netflix Inc., though it doesn’t yet have a competing product to show for it. In fact, little more has come out of the WarnerMedia acquisition so far than reports of culture clashes, differing visions and high-profile personnel exits.According to the New York Post this week, some HBO staffers have been put off by the brusque management style of their new WarnerMedia boss John Stankey, a longtime AT&T executive. The Dallas-based C-suite is putting pressure on its Hollywood employees to ramp up HBO’s production slate as they coalesce around building a new streaming app named HBO Max, the strategy for which is still nebulous and seems to keep changing. They have a deadline to unveil the product to investors on Oct. 29. Later in the year, HBO Max will officially join the alphabet soup of video services already offered by AT&T:The subscription on-demand product sounds akin to Walt Disney Co.’s Disney+ and Apple Inc.’s Apple TV+, which are both launching within the next three months and gunning for Netflix Inc.’s subscriber base. They’re spending billions of dollars to fill out their apps with HBO-quality content. In theory, AT&T is sitting on a set of assets best suited to draw a wide streaming audience, with HBO’s high-quality programming, plus news, sports, comedy, cartoons and popular films. But merger integration issues and AT&T’s lack of experience in the content business pose major challenges.The price could also turn off subscribers. HBO Max is expected to charge a few dollars more than the stand-alone HBO Now app, which at $15 a month is higher than Netflix’s $13 monthly fee and more than double the $7 that Disney+ will charge. In fact, bundling Disney+, Hulu and ESPN+ will be just $13. The irony is that while Stephenson tries to transform AT&T into a media conglomerate, the wireless business that’s effectively been overshadowed by the merger is improving. It's the healthiest area of the company. Wireless accounted for 37% of AT&T’s revenue in the last 12 months, but it was nearly 50% of Ebitda, according to data compiled by Bloomberg. That cash flow is helping AT&T contend with a heavy debt load, which stood at $194 billion as of June. Wireless network performance has gotten better as new spectrum has been deployed, boosting AT&T’s image as the carriers transition to 5G service. Based on scoring by various outlets that track wireless connections, AT&T was able to crown itself America’s “fastest, best and most reliable network,” which are useful bragging rights for TV ads as the industry battles for customers. More important, AT&T is saving money through a public-private contract it won to build FirstNet, a network for first responders. Put simply, while AT&T’s workers climb towers to set up FirstNet, they’re also prepping its airwaves for 5G.These improvements haven’t yet reduced churn, or the rate at which customers are leaving AT&T, but that could be next should the wireless business stay on track. And if T-Mobile US Inc.’s takeover of Sprint Corp. overcomes state opposition (16 attorneys general have sued to block the deal), there will be one less competitor for AT&T and a chance to raise prices.AT&T’s DirecTV satellite business continues to shrink, with the company losing 946,000 video subscribers in the second quarter, including DirecTV Now customers who canceled in the wake of price hikes. That streaming service was recently renamed AT&T TV Now as the company moves away from the fading DirecTV brand. It also introduced a new service this week in certain markets called AT&T TV, which is a similar live-TV and on-demand app with various package options, but also involves using a streaming box where users can access other services they may subscribe to, such as Netflix. It became clear this week that AT&T TV and HBO Max together are at the center of Stephenson’s vision for the new AT&T.The idea must have seemed so sweet three years ago. But peering into the kitchen, it’s all still a bit hectic. He'll have to keep waiting for that dessert.To contact the author of this story: Tara Lachapelle at tlachapelle@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering deals, Berkshire Hathaway Inc., media and telecommunications. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
- InvestorPlace
5 Streaming Stocks to Buy for the TV Streaming Gold Rush
It's August 2019, and we are on the eve of a streaming TV gold rush that will forever change the global entertainment landscape.To be sure, the linear to internet TV shift has been playing out for the past decade. But, from essentially 2010 to 2019, there have really only been three viable streaming TV services -- Netflix (NASDAQ:NFLX), Amazon (NASDAQ:AMZN) Prime Video, and Hulu -- all of which cost a very cheap ~$10 per month.As such, contrary to what the headlines will lead you to believe, cord-cutters have been the exception. Most households in the U.S. have a Netflix subscription. Most households also still pay for cable TV. In other words, the consumption shift from linear to internet TV in the 2010's has been defined largely by consumers bundling pay TV packages and streaming services together -- not by wholesale cord-cutting.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat's about to change in 2020. A plethora of new streaming TV services are going to launch in late 2019 and 2020. Most of these streaming TV services project to be really good. Pretty much all of them will feature exclusive content.The introduction of these new services will truly kick-start the cord-cutting trend. By 2025, I don't think many households in the U.S. will be paying for cable TV. Instead, I think most households will bundle together several streaming packages at a cost that's similar to what they paid for cable, but with a lot more content and enhanced convenience. Deloitte agrees, saying that as early by the end of 2020, 20% of adults in developed economies will be paying for 10 digital media subscription services. * 10 Marijuana Stocks That Could See 100% Gains, If Not More What's the investment implication here? Buy streaming TV stocks. The streaming TV gold rush that will play out in the 2020's will create a rising tide that will lift most boats in this segment. Streaming TV Stocks to Buy: Netflix (NFLX)Source: Riccosta / Shutterstock.com Streaming Service(s): NetflixIndustry pioneer and leader Netflix is widely seen as a big loser with the oncoming onslaught of competitive streaming TV services from the rest of the media industry.But, this fear seems overstated to me. Netflix will be just fine. As mentioned earlier, the norm by 2025 will be multiple streaming TV subscriptions per household. Probably somewhere around four to five. An over-the-top complete TV package like YouTube TV or AT&T TV will likely be one of them, since consumers still have huge demand for live TV. That leaves three to four open spots. So, when all is said and done, all Netflix needs to be is a top three to four streaming service.Netflix will inevitably be that. The core value prop of Netflix is the original content. Original content streaming hours as a percent of total streaming hours on Netflix has risen from 14% in January 2017, to 24% in October 2017 to 37% in October 2018. Bears will say that the bulk of viewing hours are still allocated for licensed content. I'd argue that the trend implies that by the time Netflix loses its licensed content (2020/21), the percent of viewing hours dedicated to original content will be north of 50%.Thus, contrary to what the bears will have you believe, the original content strategy is working here. Netflix subscribers are watching more and more Netflix originals, and they are liking them, too (a hefty portion of Netflix originals score really well on IMDb). This strategy will continue to work for the foreseeable future. Netflix has huge data and resource advantages. They have more viewership data than anyone else in this space, and they also spend more money on content than anyone else.Net net, Netflix will be just fine in the wake of intensified streaming TV competition. The platform will continue to add subs at a record rate during the streaming TV gold rush of the early 2020's, and NFLX stock will march higher. Disney (DIS)Source: ilikeyellow / Shutterstock.com Streaming Service(s): Disney+ (launching November 2019), ESPN+ and HuluPerhaps the one company that investors and consumers are most excited about with regards to its streaming TV market entry is global media giant Disney (NYSE:DIS).Streaming TV isn't brand new for Disney. The company launched EPSN+, a streaming extension of ESPN, in 2018. The company has also long held a stake in streaming platform Hulu, and now owns the entire service. But, those two services pale in comparison to the forthcoming launch of Disney's branded streaming service and true competitor to Netflix -- Disney+.Disney+ will do really well. As stated in the Netflix segment, all Disney+ has to be is a top three to four streaming service to be successful at scale. That means all Disney+ needs is to have a top three to four content library in the streaming TV world. The platform will inevitably have that, given that Disney owns a treasure chest of content dating back several decades and that the company consistently dominates the box office every single year.Further, Disney is offering a package that bundles Disney+, ESPN+ and Hulu together. That package should do very well, because it checks off every entertainment type -- great movies with Disney+, live sports with ESPN+ and great shows with Hulu. * 11 Stocks Under $10 to Buy Now Net net, Disney's streaming TV push over the next several years will yield hugely positive results, led by Disney+ turning into one of the biggest streaming TV services in the world. As this happens, DIS stock will naturally rally as cord-cutting headwinds become old news and as profits start marching higher with a consistently robust pace. Apple (AAPL)Source: Shutterstock Streaming Service(s): Apple TV+ (launching November 2019)Another company which both investors and consumers are excited about with regards to its streaming TV market entry in late 2019 is Apple (NASDAQ:AAPL).The big story at Apple is pretty simple. Over a decade ago, the genius known as Steve Jobs came up with the iPhone. That small gadget changed the world. Ever since, Apple has sold a ton of iPhones to a ton of consumers everywhere and Apple's revenues, profits and market cap have exploded higher.But, the hardware growth narrative has largely run its course. That is, pretty much everyone who wants a smartphone, already has a smartphone. Thus, Apple is looking for alternative revenue streams to sustain growth in the absence of robust hardware growth.The biggest of these alternative revenue streams? Software. Specifically, because Apple has sold so many iPhones over the past decade-plus, the company has a huge opportunity to monetize the world's largest hardware install base through various subscription software services like a streaming music service, a curated news service, a cloud storage service so on and so forth.The most promising of these services? A streaming TV service dubbed Apple TV+, which is set to launch in November 2019.The big question marks for Apple TV+ revolve around content. Apple hasn't ever produced TV shows or movies before. But, the company has a ton of cash it can spend to attract top talent, and top talent usually makes strong content that consumers are willing to pay for.Thus, given Apple's huge resources, Apple TV+ does project as a top three to four streaming TV service at scale, meaning that Apple TV+ could be set to add tens of millions of subs over the next few years. If so, that software revenue growth bump will provide a lift to AAPL stock. AT&T (T)Source: Lester Balajadia / Shutterstock.com Streaming Service(s): AT&T TV, DirectTV Now and HBO Max (Spring 2020)The dark horse in the streaming TV gold rush is telecom and media giant AT&T (NYSE:T). But, because AT&T's streaming TV potential is presently so understated, I actually think AT&T stock could be one of the biggest winners in the streaming TV gold rush of the early 2020's.The idea here is simple. AT&T -- much like Disney -- has struggled with cord-cutting for the past several years. Those headwinds have kept a lid on AT&T stock. Also much like Disney, AT&T is attempting to remedy those headwinds with a forthcoming big push into the streaming TV arena. AT&T is set to launch both AT&T TV (an over-the-top TV package that is basically cable, but cheaper and in the streaming format) and HBO Max (an HBO-focused streaming service with additional WarnerMedia content) soon.Unlike Disney stock, though, AT&T stock has not benefited from a major uptick over the past few quarters in anticipation of this streaming TV push. This disconnect is an opportunity.Both AT&T TV and HBO Max will be huge. As more streaming services rush to the forefront, consumers will increasingly look to cut the cord. But, they will still want to watch live TV. AT&T TV will allow them to do that, at a fraction of the cost of cable. Thus, AT&T TV will become the de-facto live TV replacement in the streaming world.At the same time, HBO Max is equipped with enough content firepower from HBO and WarnerMedia to compete pound-for-pound with industry heavyweights Netflix, Amazon and Disney. * 7 Stocks the Insiders Are Buying on Sale In total, then, AT&T's streaming TV push over the next few years could be tremendously successfully. Tremendous success on the streaming TV front isn't priced into dirt-cheap AT&T stock today. As such, the potential upside in AT&T stock from the streaming TV gold rush is quite compelling. Roku (ROKU)Source: jejim / Shutterstock.com Streaming Service(s): All of them.When it comes to the streaming TV gold rush, perhaps the best way to play the trend is to buy shares of streaming device maker and service aggregator Roku (NASDAQ:ROKU).Plain and simple -- Roku is becoming the cable box of the streaming TV world. That is, the streaming TV world in 2025 will look a lot like the linear TV world of 2015. There will be a whole bunch of streaming services (which are basically just different "channels"). There will also be a ton of consumers trying to access those streaming services. Thus, there will be an increasing need for someone to step in and act like a cable box -- connecting all that demand to all the supply in seamless manner.Roku does that. They also do it better than anyone else for several reasons. First, they are content neutral, so every service can be accessed without friction and bias. Second, they have the most intuitive UI, which consumers broadly understand and love. Third, they dominate the smart TV market, with one out of every three smart TVs in the U.S. last quarter being a Roku TV. Fourth, their separate set-boxes are dirt cheap.Given these factors, Roku is not just the cable box of the streaming TV world today. But, they project to remain the cable box of the streaming TV world for a lot longer, too. As such, this platform will grow with the entire streaming TV industry for the next several years. All that growth will inevitably push ROKU stock higher in the long run.As of this writing, Luke Lango was long NFLX, AMZN, DIS, T and ROKU. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post 5 Streaming Stocks to Buy for the TV Streaming Gold Rush appeared first on InvestorPlace.
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Disney May Disrupt Netflix, But Take Your Time With DIS Stock
Disney (NYSE:DIS) stock is treading water. Shares now trade around $135, down from as high as $147.15 in late July. The recent earnings miss calls into question the current valuation of Disney stock. But with the launch of Disney+ around the corner, is now the time to buy DIS? Disney stock continues to trade at a premium compared to its peers, but offers material upside in the long-term. Let's take a deep dive and see what's the verdict with Disney stock.Source: Shutterstock Recent Performance of DISDisney announced earnings on Aug. 6. DIS saw earnings per share fall 59% year-over-year. Much of this decline was due to the integration of recent acquisitions 21st Century Fox and Hulu. Excluding these items (amortization and impairment charges on intangible assets), EPS fell only 28%. The integration of these assets offers long-term upside. But in the meantime, integrating these operations is a work-in-progress.21st Century Fox's film division has under-performed. Recent release "Dark Phoenix" was a box office bomb. But Disney's film division continues to be strong. "Avengers: Endgame," "Aladdin" and "Toy Story 4" met expectations. For the third quarter, Disney should see additional strong performance in the film division. Disney's July release of "The Lion King" has already generated over $1.4 billion at the worldwide box office. As I stated in a previous article, the Magic Kingdom continues to be "king of content."InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Marijuana Stocks to Ride High on the Farm Bill Through Aug. 18, Disney's film distribution arm, Buena Vista, had 37.1% of the box office market share for 2019. This is leaps-and-bounds ahead of number two, Comcast's (NASDAQ:CMCSA) Universal. Universal's year-to-date market share is just 13.8%. Add in 20th Century Fox's box office take, and Disney has more than 40% market share. Theatrical revenue is a small component of today's film business. But it is a strong indicator of the residual value of Disney's film assets. In the more lucrative television and streaming markets, Disney's content is king. This mass appeal will translate well when Disney launches the anticipated Disney+ service later this year. Full Steam Ahead for Disney+Disney's new streaming service goes live in November. Disney+ could disrupt Netflix's (NASDAQ:NFLX) current streaming dominance. As InvestorPlace's James Brumley wrote last week, the company will bundle Disney+, ESPN+ and Hulu in a $12.99/month package, the same price point as Netflix.As I mentioned in my recent Netflix analysis, NFLX's U.S. subscriber base is falling. Content producers are demanding higher licensing fees. In addition, Comcast's NBCUniversal and AT&T's (NYSE:T) WarnerMedia are hoarding properties such as "The Office" and "Friends" for their respective streaming apps. Netflix believes it can counter this with billions invested in original programming. But, Netflix has not yet created a show with the matched popularity of its licensed content. On the other hand, Disney has an impressive library, thanks not just to its own content, but to Fox's extensive film and television library as well.With Disney+ around the corner, should investors nix NFLX and stock up on DIS? Let's take a look at valuation, and see if the opportunity justifies the price. Valuation: Is Opportunity Worth the Current Price?DIS stock currently trades at a forward price-to-earnings ratio of 23. The company's Enterprise Value/EBITDA ratio is 18.7. This is a substantial premium to its big media peers: * AT&T: Forward P/E of 9.7, EV/EBITDA of 8.2 * CBS (NYSE:CBS): Forward P/E of 7, EV/EBITDA of 8.6 * Comcast: Forward P/E of 13, EV/EBITDA of 9.6 * Viacom (NYSE:VIA, NYSE:VIAB): Forward P/E of 6.2, EV/EBITDA of 6.3But as I have mentioned before, comparing DIS stock to its peers is not apples-to-apples. AT&T and Comcast are both telecom companies with attached media businesses. CBS and Viacom (which are going to merge) face headwinds in the age of streaming. But compared to the valuation of NFLX, Disney stock is a clear bargain. NFLX trades at a forward P/E of 92.4, and an EV/EBITDA ratio of 52.8. Compared to NFLX, Disney is the smarter play. With DIS stock, you get a highly profitable media conglomerate with potential upside from streaming. Bottom Line: Wait to Buy DIS StockDisney stock should continue to win in the long term. If the upcoming Disney+ platform performs as expected, the company should see continued growth, even if their legacy cable networks business sees long-term decline. However, there are negative factors to consider. While it trades at a lower valuation than NFLX, Disney shares trade at a substantial premium to its big media peers. A recent claim that Disney overstated its theme park revenue could be a potential risk. But this recent news item is still playing out.The launch of Disney+ is a long-term play. Profitability is years away. In the meantime, a market correction could impact the valuation of DIS stock. Coupled with short-term growing pains, DIS stock could be a bargain sometime down the road. For now, wait on the sidelines as new developments factor into the stock.As of this writing, Thomas Niel did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Marijuana Stocks to Ride High on the Farm Bill * 8 Biotech Stocks to Watch After the Q2 Earnings Season * 7 Unusual, Growth-Oriented REITs to Buy for Your Portfolio The post Disney May Disrupt Netflix, But Take Your Time With DIS Stock appeared first on InvestorPlace.
- Bloomberg
Amazon’s Cloud-Computing Empire Faces Threat From Edge of the Network
(Bloomberg) -- Three companies — Amazon.com Inc., Microsoft Corp. and Alphabet Inc. — quietly dominate the world of cloud computing.With more more than 100 giant data centers worldwide, they rent out computing power to all manner of customers, making billions of dollars along the way. In fact, cloud computing has done more to fuel Amazon’s earnings in recent years than its e-commerce business.But there’s a threat looming on the horizon, quite literally at the edge of the network. With so many mobile devices and sensors now connected to the internet — and relying on artificial intelligence — more people and companies need their computing power close to them. For everything from fast analysis of road conditions to streaming holographic concerts, remote data centers are just too far away.That’s going to hand a huge opportunity to wireless carriers, which are building fast 5G networks to handle the task. And create a threat for the dominant cloud-computing players, according to telecom analyst Chetan Sharma. “Over time, cloud will be primarily used for storage and running longer computational models, while most of the processing of data and AI inference will take place at the edge,” said Sharma, who just wrote a report on the topic sponsored by software provider AlefEdge Inc. He pegs the size of this so-called edge-computing market at more than $4 trillion by 2030.Wireless carriers and the owners of cell towers have a big advantage in the edge-computing race: Not only do they control access to high-speed telecommunications networks, they have valuable real estate, such as tens of thousands of cell sites all over the country.Cloud computing isn’t going away by any means. But there’s more pressure on the industry’s Big Three to team up with wireless carriers, so they’re not left out of the burgeoning edge market.“The big players realize that at a minimum they need to partner up with operators to get access to their real-estate property,” Sharma said.Already, AT&T Inc. — the second-largest U.S. wireless carrier — has joined forces with Microsoft Corp. and IBM Corp., two cloud providers.“Our goal is that our partners are wildly successful,” said Sam George, a cloud executive at Microsoft. “If our partners are wildly successful, we’ll be wildly successful. There’s a lot of money to be made for partners.”Amazon and Google declined to comment on their plans.AT&T has hundreds of workers focused on edge computing, and it’s “a core part of our 5G strategy,” said Mo Katibeh, chief marketing officer of AT&T’s business division.“This is one that takes a village.”IBM, meanwhile, is also working with carrier Vodafone Group Plc in Europe.“The networks are essentially themselves becoming a cloud,” said Steve Canepa, IBM’s global managing director for the telecom industry. “The telcos today have a point of presence at the edge, and that becomes a great place to have an extension of the platform.”Cloud providers in China — such as Alibaba Group Holdings Ltd. and Tencent Holdings Ltd. — invested in carrier China Unicom two years ago. And more such investments and partnerships could be coming, Sharma said.For other tech companies, including chipmakers like Intel Corp., the hope is the shift leads to a bigger opportunity for everyone.“We see a rapid convergence between the cloud providers and connectivity providers,” said Caroline Chan, a general manager at Intel. “In our view, it’s a bigger pie.”Other telecom players are angling to team up with both carriers and cloud providers. Crown Castle International Corp., which owns fiber lines as well as more than 40,000 cell towers in the U.S., is in talks with the two camps, said Paul Reddick, a vice president at the company.Crown Castle also is an investor in startup Vapor IO, which is deploying edge computing this year in six metro areas, including Chicago.“I would say this is one that takes a village,” Reddick said.Other projects are already well underway. At CenturyLink Inc., about 100 facilities that used to store telecom equipment are now outfitted with servers. And it’s making them available to corporate customers in sectors like retail and industrial robotics.“We’ve already sold these facilities to a number of customers that need to get that compute closer to the network edge,” said Paul Savill, a senior vice president at CenturyLink. “We’ve seen enough activity in this space that we can confidently build out this infrastructure.”To contact the author of this story: Olga Kharif in Portland at okharif@bloomberg.netTo contact the editor responsible for this story: Nick Turner at nturner7@bloomberg.netFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
