|Day's Range||0.0800 - 0.1200|
Shares of AT&T tanked more than 4% on Tuesday after MoffettNathanson downgraded the stock to sell on the belief that the telecom giant has bigger problems than a rivalrous wireless landscape. In a note to investors, analyst Craig Moffett wrote that even as the company has delivered on its promises for 2019, the picture for 2020 and beyond has gotten cloudier.
Shares of AT&T fell more than 4% on Tuesday after MoffettNathanson downgraded the stock to sell on the belief that the telecom giant has bigger problems than a competitive wireless landscape.
AT&T Inc. shares are off 2.7% in Wednesday trading after KeyBanc Capital Markets analyst Brandon Nispel wrote that his analysis of third-party credit-card data showed "further deterioration" in video subscriber trends. "While video monetization remains healthy, subscriber metrics are not," Nispel said. He wrote that AT&T TV and DirecTV subscribers look to be below his original expectations through October based on the card data. Nispel also sees HBO customers declining now that "Game of Thrones" has ended. While he argues that excitement for the upcoming HBO Max streaming service is "increasing" following the hype around Walt Disney Co.'s new Disney+ offering, Nispel has a measured view of AT&T's potential in streaming: "We doubt HBO Max will be anywhere near as successful as Disney+ given: 1) HBO Max's price point of $14.99/month is uncompetitive with Disney+ and Netflix at $6.99 and $12.99, respectively; and 2) HBO Max will not have the appeal of a brand new service." Nispel rates the stock at sector weight with a $38 target price. His comments come a day after AT&T received a downgrade from analysts at MoffettNathanson, who worried about whether the company will be able to meet its targets. AT&T shares slipped 4.1% in Tuesday's session, though they're up 30% on the year. The S&P 500 has risen 24% so far in 2019.
AT&T Inc. (AT&T, Baa2 stable) announced on November 18 that it is commencing tender offers to purchase 53 series of outstanding notes valued at about $5 billion issued by wholly-owned subsidiaries of AT&T. The tender offers will expire end of day December 16, 2019. The transaction is positive because it will reduce structurally senior debt ahead of its primary debt at AT&T Inc. However, as there have been past unsuccessful tender offers for much of this debt, Moody's does not expect most of the tender offer notes to be redeemed.
Verizon (VZ) launches 5G Ultra Wideband Network services in Boston to promote next-gen connectivity by leveraging high throughput, ultra-low latency and massive capacity.
The company's AT&T; TV NOW, DirectTV and HBO platforms experienced subscriber declines in October, according to a note from KeyBanc.
(Bloomberg) -- Some customers who signed up for Walt Disney Co.’s new Disney+ streaming service have seen their usernames and passwords sold online to third parties and have been locked out of their newly opened accounts.Disney said its system hasn’t been hacked and that it’s working to quickly address the issue. It’s possible that hackers obtained the names and passwords from data breaches at other companies.“Disney takes the privacy and security of our users’ data very seriously, and there is no indication of a security breach on Disney+,” the company said in a statement.Disney+ is the company’s effort to build a direct connection to consumers, as many people shift to watching movies and shows on demand rather than on cable and satellite TV. The $7-a-month service launched a week ago and quickly signed up more than 10 million customers, a number far exceeding predictions.Still, the debut was marred by many complaints from customers who couldn’t log on or had trouble watching programs. But the number of gripes collected by the website Downdetector has dropped sharply over the past week and now amounts to just a few dozen.Growing ExposureSpeaking at the Code Media conference in Los Angeles on Tuesday, Disney’s direct-to-consumer chief blamed the initial troubles on faulty coding in the app that the company is working to fix. Kevin Mayer said Disney executives were “very surprised” by the number of people who subscribed.The sign-up process was complicated, he said, because some customers already had subscriptions to Disney services such as Hulu and wanted to add the new one. Many customers also forgot they already has Disney accounts.“Not only was it huge demand, but the complexity,” Mayer said. “If you were a current subscriber, how does it work? Those were legitimate questions.”While Disney has long collected customers’ names and passwords for its theme parks and online games, the expansion into online video on a global basis brings the potential for more technology snafus.ZDNet reported over the weekend that Disney+ users’ accounts were being put up for sale on hacking forums within hours of the service’s launch at prices of $3 to $11 each. Some customers reported they had used old passwords, but others said they hadn’t, according to the website.While there may be few thousand compromised Disney accounts, that’s small compared with the hundreds of thousands of usernames and passwords on the black market hijacked from platforms like Hulu, Netflix and HBO, said Andrei Barysevich, chief executive officer and co-founder of the security firm Gemini Advisory.‘Very Effective’Reusing names and password combinations from previous attacks at other sites can be a “very effective method” for hackers, he said.“This is one of the biggest problems, not just streaming services, but pretty much every e-commerce business has been battling for the last couple of years, because there’s an abundance of compromised emails and passwords on the dark web,” Barysevich said.At Code Media, a conference for media executives, operators of rival services praised the Disney+ launch. David Nevins, chief creative officer at CBS Corp., called the sign-ups “impressive,” while AT&T Inc. President John Stankey said that while Disney+ “was off to a good start,” keeping customers happy and subscribed will be an ongoing issue.“How many of the 10 million customers are there six months from now?” Stankey asked. “It’s managing churn.”(Updates with executive comments starting in sixth paragraph)To contact the reporters on this story: Christopher Palmeri in Los Angeles at firstname.lastname@example.org;Kiley Roache in New York at email@example.comTo contact the editors responsible for this story: Nick Turner at firstname.lastname@example.org, Rob GolumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Jeff Zucker, one of the most influential sports media voices since becoming chairman of WarnerMedia’s news and sports division and president of CNN Worldwide eight months ago, shares his approach to news and sports in a rapidly changing industry.
The rally in AT&T; stock looks done said an analyst who downgraded the company to sell. He called its entertainment group, which includes DirecTV, a cancer. AT&T; stock fell on the news.
(Bloomberg Opinion) -- There’s been a lot of drama lately in the wireless world concerning 5G and something called C-band. To most people, all the news headlines have probably looked like a foreign language. But allow me to translate for you, because it’s a fascinating situation that has sparked a transnational fight over some $50 billion, while presenting advocates of President Donald Trump’s “America First” policy with a catch-22. The outcome may have far-reaching implications for the U.S. in the global race to 5G, and it certainly does for a pair of beaten-down European stocks. At the root of the drama is spectrum, the invisible airwaves sought after by U.S. wireless carriers — Verizon, AT&T, T-Mobile, Sprint — and others to construct ultra-fast 5G data networks, the kind that will enable a smartphone to download a movie in mere seconds and support driverless car technology. The Federal Communications Commission has been working to free up spectrum being used by other institutions so that it can be auctioned off to the 5G builders and repurposed for their networks, a high priority for the Trump administration.But there have been some hiccups along the way. Take one case, in which scientists from the National Oceanic and Atmospheric Administration (NOAA) and the National Aeronautics and Space Administration (NASA) raised concerns that a particular slice of spectrum auctioned by the FCC could interfere with weather sensors and limit their ability to forecast hurricanes. That’s quite a quandary.The recent spectrum controversy, a separate matter from the hurricane one, has involved a swath referred to as the C-band. In the 3.7 to 4.2 gigahertz frequency range, these midband airwaves are highly desirable for 5G because they can both carry large amounts of data and travel long distances (some spectrum can only do one or the other). Here’s where it gets complicated: Most of the C-band is controlled by two Luxembourg-based companies, Intelsat SA and SES SA, which use it to beam TV shows to U.S. households from their satellite fleets. Telesat of Ottawa also owns some of the C-band rights. These three foreign companies make up what’s called the C-Band Alliance (CBA).The good news it that the CBA members are willing sellers, and the auction could raise $50 billion or more, according to an estimate by New Street Research. It would be one of the biggest spectrum auctions ever. But who gets the money: the CBA, or the U.S. Treasury? These are U.S. assets, after all. The CBA had been pushing for a private auction run by, of course, the CBA, arguing that it would make the process much faster. For those who see America’s buildout of 5G as an important geopolitical race against China, time is of the essence. FCC Chair Ajit Pai — who is already a controversial figure for repealing net neutrality and for backing the potentially harmful merger of T-Mobile and Sprint — originally seemed to be leaning toward the CBA plan. His Republican colleague, Commissioner Michael O’Rielly, was in strong support of it: “In the grand scheme of things, if it is a contest between speed and the government trying to extract a significant piece of the transaction through a lengthy process, I’ll take the speedy resolution,” O’Rielly said at a conference in September. But in the CBA auction scenario, only a portion of the proceeds would go to the U.S., while the rest would be pocketed by the CBA. That sounded like nails on a chalkboard to at least one member of Congress: “They’re thinking about giving our spectrum to three foreign companies and letting them keep the $60 billion,” Republican Senator John Kennedy of Louisiana said during an impassioned speech on the Senate floor last month. “Talk about swampy,” he said, adding that the funds should go to the American taxpayer. But to put America first, is it better to hold a quicker auction or a more lucrative one? Kennedy has led the charge against the CBA’s plan (seemingly a charge of one because, hey, it’s hard getting folks excited about radio waves), pushing instead for a public auction run by the FCC. Though he may have a point, it was somewhat diluted by his supplemental remark that proceeds from the auction “would solve all of the president’s [border] wall problems.” Perhaps a coincidence, after Kennedy stumped at a Trump rally in his home state last week in support of Republican gubernatorial candidate Eddie Rispone, the FCC changed its tune. On Monday, Pai Tweeted that he supports a public auction, citing that it would “afford all parties a fair opportunity to compete for this 5G spectrum,” limiting the litigation risk that a private auction may have presented. This is bad news mostly for the CBA crew. The U.S. wireless carriers would obviously like to get their hands on this spectrum sooner rather than later and have a bigger say over the process (Verizon especially, given that it’s focused so far on finicky millimeter wave spectrum). But for the heavily indebted Intelsat, it’s a far bigger inconvenience. The company’s stock has plummeted more than 50% this week, while SES dropped 24%.There’s more to come on this matter, but so far the supposed race to 5G looks more like an exhausting obstacle course. 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 the business of entertainment and telecommunications, as well as broader deals. 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.
The Dow Jones Industrial Average fell from record levels while the S&P was flat on Tuesday as dour forecasts from retailers Home Depot and Kohl's fueled worries about consumer spending while uncertainty over the U.S.-China trade dispute simmered in the background. The tech-heavy Nasdaq was the best-performing of the three indexes, with support from Facebook Inc and Broadcom Inc helping to counter a drag from Qualcomm after the chip maker held an investor meeting.
The S&P 500 and the Dow Jones indexes slipped from record levels on Tuesday as dour forecasts from Home Depot and Kohl's eroded confidence on the strength of U.S. consumer spending ahead of the all-important holiday shopping season. The tech-heavy Nasdaq rose 0.24%, supported by gains in shares of Microsoft Corp, Facebook Inc and Broadcom Inc.
Can AT&T really deliver on its big three-year plan for growth? Analysts at MoffettNathanson have some reservations. The company is weighed down by slowing businesses that a more solid wireless business can't easily make up for, they said.
Other retail stocks also fell on the news, driving the S&P 500 retail index down 1.1%. Seven of the 11 major S&P 500 sectors were lower, with the consumer discretionary index's 0.82% drop weighing the most.
MoffettNathanson telecom analyst Craig Moffett cut his rating on the stock to Sell from Hold, with a new price target of $30.
MoffettNathanson’s Craig Moffett has doubts that the telecommunications giant will be able to meet its target of 1% to 2% annualized revenue growth over the next three years while also delivering on its goal of stable margins in the year ahead, especially as the wireless industry becomes more competitive. The stock is off 2.7% in Tuesday trading as Moffett detailed his concerns that AT&T may have “overpromised” with its outlook and that the current market environment might place less value on AT&T’s high dividend. Moffett projects continued revenue declines for AT&T’s entertainment, business wireline, and Warner Media units, given a challenging pay-TV landscape and cost-cutting efforts in the video business that have sent subscribers fleeing.
One of the most basic but useful metrics a stock trader can watch is daily trading volume. Volume is simply the total number of shares that change hands in a given time period. Essentially, volume is an ...
Analysts are feeling "more cautious" about HBO Max's financial prospects, but are projecting optimistic gains for the forthcoming service's subscriber base.
From understanding your risk tolerance to maintaining emotional control, achieving your retirement goals takes a much different investing approach than regular stock trading.
The acquisition of Game Show Network will augment Sony's (SNE) already robust catalogue of game shows and first-run series, thereby strengthening its leading position in the market.
Shares of AT&T Inc. are down 1.7% in premarket trading Tuesday after MoffettNathanson analyst Craig Moffett downgraded the stock to sell from neutral. "Despite a target price well below AT&T's recent trading range, we've remained Neutral since our upgrade from Sell last November, based largely on the view that global yield starvation would attract capital to AT&T irrespective of its fundamentals," he wrote. "But in the wake of a strong rally that has left AT&T's valuation stretched and its dividend yield less compelling (particularly when measured against the recent recovery in the 10-year Treasury yield), we believe the time has come when the market will start paying attention to fundamentals again." AT&T's dividend yield is 5.15%, while the S&P 500's in 1.9%. He questions whether the company will be able to achieve its 2020 and three-year targets given challenges in its entertainment business, secular problems in business wireline, and a difficult pay-TV landscape. This will put pressure on AT&T's wireless business to deliver strong results, in Moffett's view, but that industry is becoming more competitive. He kept his $30 target price. AT&T shares have risen 39% so far this year, as the S&P 500 has gained 25%.
Analyst Craig Moffett sees declining growth, in the mid-single-digit range, across 60% of AT&T;'s business lines, including fewer subscribers and falling video revenue in the entertainment group.