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Virtual pay TV services like YouTube TV and Sling are becoming increasingly important players in the pay TV industry as more consumers cut the cord with traditional providers.
As approval for T-Mobile US Inc.’s deal with Sprint Corp. looms over the wireless industry, fellow carrier AT&T Inc. will show of the impact of its own mega-deal when the company reports second-quarter results next Wednesday after the closing bell.
AT&T is scheduled to report its second-quarter earnings Wednesday morning before the market opens. Investors will want to hear about its efforts to pay down its debt and its planned HBO Max streaming service.
Investing.com – Wall Street jumped on Tuesday after upbeat earnings from blue-chip companies including Coca-Cola (NYSE:KO) and United Technologies (NYSE:UTX).
AT&T; stock (T) was trading at $32.14 with a 2.0% loss for the day. Earlier today, it posted a low of $32.08. Is the stock overvalued right now?
SANTA CLARA, Calif./HONG KONG, July 23 (Reuters) - China's Huawei Technologies laid off more than two-thirds of the 850-strong workforce at its Futurewei Technologies research arm in the United States, after being blacklisted by the government. Futurewei, which has offices in Silicon Valley and the greater Seattle, Chicago and Dallas areas, said it cut more than 600 jobs.
Verizon stock usually is a dividend play, as are the shares of its rival AT&T.; But Verizon 5G lies ahead. Here's what various analyses say about Verizon as 5G wireless comes into play.
(Bloomberg Opinion) -- If the market for television and video-streaming services wasn’t frustrating enough for consumers, now comes news that millions paying for DirecTV suddenly can’t watch CBS, the most popular TV network in the U.S., due to a contract dispute between the media giants. The good news is that it’s not yet football season, and it’s also in both companies’ interests to reach an agreement soon. The bad news is that the channel-blackout trend is only getting worse. CBS went dark over the weekend on AT&T Inc.’s DirecTV, DirecTV Now and U-verse platforms for customers in cities including New York, Los Angeles, Chicago, Philadelphia and Atlanta, as they tussle over the renewal rate for AT&T’s pay-TV operators to carry CBS programming. The blackout deprives subscribers in those markets of popular shows such as "The Late Show with Stephen Colbert" and "Big Brother" – an inconvenience that’s becoming all too familiar for viewers. Already more than 200 TV markets have had broadcast signal disruptions this year, the most ever, according to the American Television Alliance, a group that lobbies for cable and satellite providers. AT&T said it has offered CBS “an unprecedented rate increase.” CBS’s stance is, yeah, no kidding, given that it’s been seven years since the deal was last renewed. My feeling: groan. It’s deja vu for AT&T customers because the company was also involved in a dispute earlier this year with Viacom Inc., the owner of cable channels such as MTV and Nickelodeon. The two sides reached a deal relatively quickly – but not before they traded jabs in public statements and flooded social media with annoying campaigns to rile up customers and pass the blame. On March 19, AT&T’s line was that Viacom networks are “no longer popular.” Just a few weeks later it was whistling a different tune, featuring the same networks prominently on its DirecTV Now sign-up page to highlight the streaming package’s channel lineup.Customers sure are tired of this old song and dance. They don’t want to hear “CBS has put you into the middle of its negotiations,” which DirecTV tweeted to an angry customer on Saturday, or that “loyal viewers are now bearing the burden for AT&T’s unwillingness” to bend, as CBS put it in its own press release. It doesn’t matter whether AT&T “dropped” the network or CBS “pulled its signal” from AT&T. Subscribers just want consistent service at a fair price, and that seems like it will be harder and harder to get, thanks to an industry that’s turning more anti-competitive to protect its profit margins in the wake of cord-cutting and consolidation.Take AT&T: Since acquiring HBO parent Time Warner last year for $102 billion (including debt), the company has shifted the spotlight away from its shrinking satellite-TV business and drab DirecTV Now product, and instead onto the sexier media-content division, which it renamed WarnerMedia. AT&T has been willing to sacrifice pay-TV customers to boost profitability on that side of the business through price hikes, while its WarnerMedia unit gears up to launch a new Netflix-like app called HBO Max. Unlike DirecTV Now, which is a virtual cable skinny bundle, HBO Max will comprise only WarnerMedia’s own content and compete with AT&T’s other services. This content will include “Friends,” one of the most popular series among the streaming set, which WarnerMedia is reclaiming from Netflix and putting on HBO Max. This is just one example of how the media giants are becoming more insular, preserving their content for their own products and playing hardball with competitors, making it harder for customers to find everything they want to watch through a single affordable subscription. In AT&T’s case, this points to the drawbacks of allowing a pay-TV and wireless giant to also control some of the most attractive TV content.Similarly, Walt Disney Co., fresh off its $85 billion purchase of 21st Century Fox’s entertainment assets, is prioritizing the launch of its Disney+ app, which it plans to bundle with ESPN+ and Hulu in an effort to topple Netflix. That means that in the future if you want certain Disney, Pixar, Marvel or “Star Wars” content, a Disney+ subscription will be a requirement. Want HBO or CBS, too? That’ll be a separate subscription for more money. (The CBS All Access app costs $5.99 a month.)In the AT&T-CBS standoff, both are motivated to end the blackout. CBS is in talks over a merger with Viacom, so it doesn’t need such distractions. The AT&T contract is also critical for CBS to meet a target of $2.5 billion in annual retransmission revenue by 2020, according to John Butler, an analyst for Bloomberg Intelligence. As for AT&T, though it may be looking to emphasize profitability over subscriber count, it still shouldn’t be proactively showing subscribers the door. Who will blink first? My guess would be AT&T. But customers really don’t care either way – they just want what they pay for. It shouldn’t be so hard.To contact the author of this story: Tara Lachapelle at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis 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.
AT&T (T) is likely to record higher operating income from the Communications segment that generates the lion's share of total revenues.
AT&T (T) is likely to record soft Q2 performance in the WarnerMedia segment that generates a significant share of total revenues.
Economic data and earnings will keep investors busy this week. More than a quarter of the S&P; 500 companies are scheduled to release their earnings.
As of July 18, AT&T; (T) has risen 15.9% in 2019. The stock has risen 4.4% in the last 12 months. AT&T; stock is trading 23.5% above its 52-week low of $26.80.
Comcast (NASDAQ:CMCSA) reports its second quarter of 2019 earnings next week, and investors seem uncertain about whether CMCSA stock is a buy. After climbing as high as $45.20 on Tuesday (an all-time high), Comcast stock lost ground on Wednesday. Then, shares closed up 0.29% on Thursday.Source: Shutterstock The uncertainty is tied to the Comcast earnings call on July 25. Will CMCSA beat expectations? The company has been doing just that in recent quarters, at least in terms of earnings.Investors will also be looking for big numbers on new high-speed internet customers. This will help offset continued bleeding of video subscribers. Further, prospective buyers will seek news on NBCUniversal's planned video streaming service.InvestorPlace - Stock Market News, Stock Advice & Trading Tips What Investors Are Looking for in Comcast EarningsWhen Comcast reported its Q1 earnings in April, the company massively beat per-share profitability expectations. The company also added 375,000 high-speed internet customers but lost 121,000 video customers. However, revenue of $26.6 billion (up 17.9% year-over-year) was lower than analysts had expected. * 10 Tech Stocks That Are Still Worth Your Time (And Money) The news initially negatively impacted Comcast stock, but it ended up closing on a high note. For Q2, investors will carefully watch developments on multiple fronts.Analysts are bullish on CMCSA's profitability prospects, with a consensus earnings-per-share forecast of 75 cents. That's a 15.4% increase over the 65 cents the company reported a year ago.Moreover, analysts will place video-customer numbers under a microscope. Comcast has been bleeding video customers -- a trend that continued last quarter. While adding high-speed internet customers (something else analysts will be watching closely) helps to offset that loss, the company takes a revenue hit because the loss of video customers comes with an accompanying loss in pay-TV subscribers.CMCSA's NBCUniversal division saw its revenue drop 12.5% last quarter, adding to the overall revenue miss for Comcast. Any news on NBCUniversal's forthcoming video-streaming service, expected to launch in Q1 2020 will be of particular interest.NBCUniversal recently paid $500 million for rights to The Office. Unfortunately Netflix (NASDAQ:NFLX), the show will be pulled from the streaming giant in 2021. However, it's expected to be a key draw for gaining subscribers for Comcast, boosting prospects for CMCSA stock.Rival media giant AT&T (NYSE:T) also has big video streaming plans for next spring, including a new WarnerMedia service that just won the rights to Friends. The competition in streaming video is set to explode, starting this fall with high-profile services from Apple (NASAQ:AAPL) and Disney (NYSE:DIS). Therefore, any mention of NBCUniversal's plans during the earnings call could have an impact on Comcast stock. Comcast Stock on an Earnings Winning StreakComcast earnings are on a year-long streak in terms of beating analyst expectations. Going back to last July, the consensus EPS forecast was for 61 cents per share, while CMCSA reported 65 cents. That trend continued unbroken and last quarter, Comcast really hit it out of the park. The media giant delivered EPS of 76 cents compared to the consensus target of 66 cents.That performance helped Comcast stock to recover after it spent the first half of 2018 in a protracted slump. At that time, investors worried about cord cutters dropping their cable subscriptions.Since the streak started with last July's Q4 2018 earnings report, Comcast has steadily risen from $34.84 to $45.20 for nearly 30% growth. That set a new all-time high for CMCSA stock in the process. In comparison, AT&T has chalked up growth of just over 6% during the same period. Also, the Nasdaq Composite gained only 4.7%. What Will Happen Next Week?July 25 will be a big day for Comcast. Another earnings beat is a strong possibility and big numbers there could boost CMCSA stock further.But with Comcast stock setting new all-time highs earlier this week, investors will be cautious. Surely, they'll be on the lookout for any sign of future trouble.As of this writing, Brad Moon did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Tech Stocks That Are Still Worth Your Time (And Money) * 7 Marijuana Stocks With Critical Levels to Watch * 7 of the Best Smart-Beta ETFs to Target Right Now The post Comcast Stock Down from Record High as Q2 Earnings Loom appeared first on InvestorPlace.
Investing.com – Wall Street rose on Monday on the hope that technology earnings this week come in strong and top analysts' expectations.
Dish Network’s (DISH) wireless business is currently in the making, as cord cutting has hit US satellite pay-TV providers harder than their cable counterparts.
Netflix has no chance of coming close to achieving the future cash flows baked into a current share price of around $325.
We’re in the busiest time of earnings season, with over one-fourth of the S&P listed companies set to release quarterly reports in the coming days. Based on the S&P members that have reported so far, results are good. Total earnings are up 2.6%, and revenues are up 2.9%. While slow, this growth is better than the losses predicted before earnings got underway.Here, we look at three blue chip stocks which are reporting earnings this week. They are mainstays of investment portfolios, some are favorites of big-name investors, and all are available at a share price of $55 or less. AT&T, Inc. (T)The venerable phone company is well-known as one of the best dividend stocks on Wall Street. AT&T offers investors a 6.22% dividend yield – one of the highest among S&P-listed companies – with a current annual payout of $2.04 per share.The dividend is important because T shares show a somewhat shaky earnings future. The company took on tremendous debt last year when it acquired Time Warner; however, free cash flow since then has been sufficient to meet the dividend and the debt service. While AT&T carries $169 billion in debt, the company says that it can pay off 75% of the Time Warner purchase debt by the end of this calendar year.That will be major achievement, and investors will be looking for evidence that it is realistic. AT&T is counting on the acquisition to power its move toward content creation and distribution as it moves into the streaming landscape. The acquisition of Time Warner was intended to bring a solid content provider to T’s DirecTV segment, and boost declining subscriber numbers. On the earnings front, Wall Street expects T to show 89 cents EPS on July 24, up from 86 in the last quarter, but down 2.2% year-over-year.Looking toward T’s performance, JPMorgan analyst Philip Cusick wrote back in May that he expects a net loss of 2.9 million DirecTV subscribers in 2019 before seeing trends improve in 2020. At the same time, he expects “average revenue per remaining user to increase 3.4% this year, to $119.65.” His bottom line on the stock: “Sentiment should improve as the trajectory of sub losses improves in late 2019, but our sense is that investors are starting to look past it already—in the meantime the 6.2% dividend will continue to come through.” Cusick’s price target of $38 of suggests an upside of 15% to the T shares.Earlier this month, Citigroup’s Michael Rollins also put a buy rating on T, and bumped his price target up 8.8% to $37. His new target implies an upside of 12% to the stock.Shares in AT&T are selling for $32.79, and the stock holds a strong buy from the analyst consensus. That rating is based on 8 buys and 2 holds given in the past three months. The average price target, $36, suggests that T has room for 9% upside. Coca-Cola Company (KO)Investing guru Warren Buffett has long been a fan of Coca-Cola, both the drink and the stock. He sees the stock as a staple, bringing slow and steady profits, and paying out a reliable 3.1% dividend yield of $1.60 per share annualized. Coca-Cola bases its performance on a solid, and growing, line-up of beverage products.Heading into fiscal Q2, Coca-Cola’s stock is trading just 1.5% below its 52-week high point. The stock hasn’t always had such good times; starting in Q2 2015, the company saw revenues drop every quarter until Q4 2018. The trend has begun to reverse, however, and in Q3 2017 EPS began to grow again, while last quarter, Q1 2019, saw a revenue gain of 5.2%.More health-conscious consumers have been putting pressure on the company, as they shift away from sodas in the US domestic market. Coca-Cola has responded by diversifying its product line, to offer drinks across all segments of the beverage market. The company is already well-known for its Dasani water and Minute Maid juices; the company also owns Costa Coffee and Fuze Beverages.So far, the strategy appears to be working, and KO’s Q2 sales are expected to show an increase of 8.83%, powering a revenue jump of 12%. The expected EPS of 62 cents is 3.3% higher than the year-ago quarter, and 29% higher than Q1. The quarterly earnings are scheduled for release on July 23.Dara Mohsenian, of Morgan Stanley, keeps KO as his ‘top overweight pick,’ saying “the beverage maker offers a growth profile that is underappreciated by the Street.” He adds, “On a two-year average basis, Coca-Cola managed to improve its organic topline growth by 80 basis points in the past few quarters which is above the 70 basis point range many of its peers are showing.”In line with his upbeat outlook on KO, Mohsenian increased his price target by 3.6%, from $55 to $57, indicating confidence in the stock and an upside potential of 11%.Coca-Cola’s analyst consensus rating is a moderate buy, based on 4 buys and 5 holds set in the past three months. The average price target, $52.29, is only 1.75% higher than the current share price of $51.39. These numbers reflect the stock’s ongoing transition away from the losses of recent years and towards the upbeat outlook detailed by Mohsenian. Ford Motor Company (F)Our third pick, Ford Motor, may be the most controversial here. Like Coca-Cola, it has a mixed rating, but it also the highest potential upside, the lowest cost of entry, and the second-highest dividend yield of the stocks in this list. In addition, shares in Ford are up 33% year-to-date, far outpacing the S&P 500’s 18.5% gain.Ford maintains its position by its popular and profitable lineup of pickup trucks. The F-Series (F-150, F-250, and F-350) are consistent best-sellers, and have led the US market in automobile sales since 1986. In 2018 alone, F-Series trucks brought the company $41 billion in revenues. According to Jim Farley, Ford’s head of global markets, that sales performance makes the F-Series a more valuable brand than Coca-Cola.Ford’s management is essentially using the popular and high-margin trucks and SUVs as a cushion while the company is in the process of reducing its small-car sales and developing lines of electric and autonomous vehicles. Possession of such an asset – the F-Series brand – has helped keep Ford’s revenues mostly stable in recent quarters, with revenue volatility in the past three years holding in an 8% range.Looking forward to the Q2 earnings report, Ford’s revenues are expected to come in at $34.86 billion, a slip of 2.9% from the year-ago quarter. True to Ford’s form, Q3 guidance predicts gain of 2.7%. Q2 EPS is expected between 30 and 33 cents, a gain of 11% to 22% over last year’s Q2. EPS for FY2019 is expected at $1.38, a gain of 6.15% from FY2018.Recent analyst reviews of Ford have focused on the company’s strategic partnership with Volkswagen in developing electric and autonomous vehicles. RBC’s Joseph Spak, while keeping a hold on the stock, increased his price target by 10%, to $11, after Ford announced plans to work with VW and Argo AI developing a high volume EV in the European market. Spak says that Ford management deserves high credit for strategic thinking. His price target is 7% above Ford’s current share price.On the bull side is UBS analyst Colin Langan, who boosted his price target to $13 and put a buy rating on the stock. Looking at the European market and Ford’s initiatives in the EV segment, he says, “Given the upcoming European regulation shifts, this should help Ford avoid emission fines.” Langan’s price target suggests a 27% upside to Ford shares.Overall, Ford has a moderate buy from the analyst consensus based on an even split of 6 buys and 6 holds. Shares trade for $10.20 with an average price target of $11.77, giving the company’s stock an upside potential of 15%.
In an early morning tweet on Saturday, CBS confirmed that its stations had been dropped for DirecTV and AT&T; U-Verse customers.