|Day's Range||2.1000 - 2.1800|
AT&T; stock is trading at a forward PE ratio of 9.02x. The company's earnings are estimated to rise 1.1% in 2019 and 2.0% in 2020. AT&T; stock looks overvalued considering the PE ratio.
PIERRE, S.D., June 19, 2019 /PRNewswire/ -- At AT&T1, we've invested more than $60 million in our South Dakota wireless and wired networks during 2016-2018. In 2018, AT&T made 569 wireless network upgrades in South Dakota.
DEEP DIVE Dividend stocks, which have performed well this year, may get another boost if the Federal Reserve cuts interest rates. With lower rates, income-seeking investors could use dividend stocks more than ever, and growth investors may also be interested because declining low interest rates prop up prices of higher-yielding stocks.
(Bloomberg) -- Over the past two decades, China’s Huawei Technologies Co. has come to dominate the global telecom equipment market, winning contracts with a mix of sophisticated technology and attractive prices. Its rise squeezed Europe’s Nokia Oyj and Ericsson AB, which responded by cutting jobs and making acquisitions. Now, with Huawei at the center of a U.S.-China trade war, the tide is turning.Nokia and Ericsson—fierce rivals themselves—have recently wrested notable long-term deals from Huawei to build 5G wireless networks, to enable everything from autonomous cars to robot surgery. Analysts say more could come their way as Huawei grapples with a U.S. export ban and restrictions from other governments concerned that its equipment could enable Chinese espionage.“Huawei will, for the foreseeable future, face a broader cloud of suspicion,” said John Butler, an analyst at Bloomberg Intelligence in New York. “Nokia and Ericsson are well positioned to benefit.”In May, the European companies both won 5G contracts from SoftBank Group Corp.’s Japanese telecom unit, replacing Huawei and Chinese peer ZTE Corp. Ericsson signed a similar pact in March with Denmark’s biggest phone company, TDC A/S, which had worked with Huawei since 2013 to modernize and manage its network.Other carriers, expecting government curbs on Huawei, have started removing its equipment from sensitive parts of their systems. BT Group Plc is taking Huawei out of its network core, and Vodafone Group Plc has suspended core equipment purchases from Huawei for its European networks. Deutsche Telekom AG, which has Huawei throughout its 4G system, is re-evaluating its purchasing strategy.Nokia and Ericsson are Europe’s final survivors of a merciless winnowing of more than a half-dozen telecom equipment providersAs dozens of phone companies—including those in Canada, Germany and France—plan to choose 5G suppliers in the coming months, Cisco Systems Inc. and Samsung Electronics Co. are also vying for deals. But the key beneficiaries of Huawei’s difficulties are likely to be the two Europeans, which compete directly with the Chinese company in supplying radio-access network equipment.Since last year, the Trump administration has pushed allies to bar Huawei from 5G, citing risks about state spying—allegations the company has denied. The move in May to block Huawei’s access to U.S. suppliers escalated the campaign. The company’s founder, Ren Zhengfei, now predicts the U.S. sanctions will cut its revenue by $30 billion over the coming two years.Outside the U.S., security concerns have led Australia, Japan and Taiwan to bar Huawei from 5G systems. The Chinese company also risks losing meaningful work in Europe and emerging markets where countries could follow with their own limits, according to Bloomberg Intelligence.Publicly, executives from Nokia and Ericsson have been careful not to come off as critical of Huawei. Both manufacture in China and sell gear to Chinese phone carriers, and Nokia has a big research and development presence there. Nokia says it has already been forced to shift some of its supply chain away from China to reduce the impact of tariffs imposed by the Trump administration.QuicktakeHow Huawei Became a Target for GovernmentsInstead of piling on Huawei, the European carriers have trumpeted their 5G successes, each using slightly different metrics. Ericsson claims it has the most publicly announced 5G contracts—21—while Nokia says it has raked in more commercial 5G deals than any other vendor (42). Huawei says it has signed 46 5G contracts. A spokesman for Huawei declined to comment further about its position relative to rivals.Ericsson is “first with 5G,” after building high-speed networks for companies such as AT&T Inc., Swisscom AG in Switzerland and Australia’s Telstra Corp., said Chief Technology Officer Erik Ekudden. “You see that in some markets that we are attracting more customers.”Nokia is winning 5G deals “quite handsomely,” Chief Executive Officer Rajeev Suri told Bloomberg TV on June 10.While Suri said more carriers are likely to swap out Huawei gear in countries that have announced restrictions, the situation is less clear in Europe. “We don’t know yet the impact of specific operator plans,” he said in an interview. “We also don’t know where this geopolitical thing will end up.”Nokia and Ericsson are Europe’s final survivors of a merciless winnowing of more than a half-dozen telecom equipment providers. Bloated costs, a cyclical marketplace, cash-strapped customers, and the relentless rise of Huawei—aided by access to generous Chinese state financing—helped push the likes of Canada’s Nortel Networks Corp. and Germany’s Siemens AG out of the industry.Nokia paid some $2 billion in 2013 to buy Siemens out of a joint venture established to compete against Ericsson and Huawei. Then in 2015, it spent another almost $18 billion acquiring Alcatel-Lucent to broaden its product offering after pushing through more than 25,000 job cuts in the preceding three years. Still, Huawei’s share of the $33 billion of sales in the global mobile infrastructure market surged to 31% in 2018 from 13% in 2010, IHS Markit data show.Huawei, despite its troubles, remains a potent rival. Many phone companies in Europe deem its base stations, switches and routers technologically superior. Fully excluding Huawei and ZTE from 5G would raise radio-access network costs for European phone companies by 40%, or 55 billion euros ($62 billion), the GSMA industry group predicts in an unpublished report seen by Bloomberg. Nokia and Ericsson would have to almost double production to absorb Huawei and ZTE’s business in Europe and could struggle to meet demand, the GSMA report says.Quicktake5G and EspionageBengt Nordstrom, CEO of telecom consultancy Northstream AB, says the situation is perilous for everyone in the industry, as vendors’ budgets could be hit if Huawei faces greater restrictions. “Many component suppliers are already in a tough situation,” Nordstrom said. “They need to spend a lot of money on research, and that means they need access to the entire global market.”For carriers, swapping vendors isn’t as simple as flipping a switch. It takes about two years to plan and implement such a technology shift and install the new equipment, Nordstrom said.Both Nokia and Ericsson are working to make it easier for carriers to switch. Nokia has developed what it calls a “thin layer” of its 4G technology to connect to a new 5G system, allowing a carrier to avoid a wholesale swap of another supplier’s equipment. Ericsson also has a solution to allow a carrier to swap out only a portion of existing infrastructure, and says it can make some areas work side-by-side with Ericsson’s 5G gear.Nokia and Ericsson can agree on one thing: Claims of Huawei’s technological superiority are overblown. They note that they’re involved in the latest networks in the U.S., where carriers are rolling out 5G faster than the Europeans.“We compete quite favorably with Huawei,” Suri said, “with or without the current security concerns.”(Updates to add Nokia and Ericsson production estimate in sixth-last paragraph. An earlier version of the story corrected the ninth paragraph to reflect that Telstra Corp. is an Australian company.)\--With assistance from Caroline Hyde, Kati Pohjanpalo and Angelina Rascouet.To contact the authors of this story: Stefan Nicola in Berlin at firstname.lastname@example.orgNiclas Rolander in Stockholm at email@example.comTo contact the editor responsible for this story: Rebecca Penty at firstname.lastname@example.org, David RocksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Disney is a stock that Wall Street is laser-focused on as the entertainment powerhouse prepares to launch its streaming TV platform in the fall. So is it time to buy DIS stock at new highs?
Director and producer J.J. Abrams may be close to sealing a major television and film deal with WarnerMedia.
J.J. Abrams is getting close to a deal to join the new media arm of AT&T, according to a report from the New York Times. WarnerMedia is looking to sign an agreement for a multi-year partnership with Abrams' media company valued at about $500 million, the report said, citing anonymous sources. The development comes after a six-month courtship process of Bad Robot, which Abrams runs with Katie McGrath, his wife, that also included Apple and NBCUniversal.
There's no denying telecom giant AT&T (NYSE:T) has painted itself into a corner on the television front. But the owners of T stock can at least cheer the fact that, if nothing else, AT&T's video business should start to deliver better profit margins beginning next year.Source: Shutterstock That's coming at a price, of course. Subscribers of DirecTV Now , a streaming version of the satellite TV service, are cancelling in droves. Over the course of the past two reported quarters, the company has lost 1.3 million video customers. About 350,000 of those former subscribers unwilling to pay the recently-upped rates. AT&T's upcoming introduction of a Time Warner-streaming product may only fuel more DirecTV cancellations. * 5 Stocks to Buy for $20 or Less Whatever's in the cards, however, it's quite clear that AT&T CEO Randall Stephenson is finally willing to swallow the much-needed bitter pill.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Dropping Dead WeightAT&T once assumed that using loss-leader cable-television packages to attract consumers into its ecosystem would ultimately position the company to cross-sell those customers more profitable products like broadband service and even wireless service.That's not how things panned out, though. Often sold at a promotional price point that was likely to be less than AT&T's procurement costs, the DirecTV experiment that began back in 2015 never turned into the cash cow (or even the marketing hook) it was supposed to be.A little company called Netflix (NASDAQ:NFLX) played a role in that disappointment as well.And, while what the future holds still isn't entirely clear now that Time Warner is part of the AT&T family, the owners of T stock can count on the future not looking like the past. Stephenson, AT&T's CEO, explained the situation at an investor conference hosted by JP Morgan last month:"This is going to be a year of just cleaning up the video business. And we've been hard at work on content agreements and getting content agreements done in a way that gives us sustainability and profitability in this business. But the other element to give you sustainable profitability is cleaning up the customer base. Because we have a number of customers on our rolls that are very low-ARPU (average revenue per user) customers and we don't see any line of sight to getting them to a profitable level. And so as these customers' contracts or whatnot are coming up, there are many who are opting to just leave…"Those lower ARPU customers aren't entirely gone, though. Analysts and investors alike are anticipating another net loss of DirecTV customers for the current quarter.But that may actually help T stock The Price War Is Cooling OffSending any customer into a rival's arms feels like a step in the wrong direction,. But there's a growing realization among most industry players tha any sort of video package has to be profitable on its own.MultiChannel News' Daniel Frankel noted in March that "The new normal (price) for (subscription TV providers) is about to be at least $50 a month."That jibes with the $50 to $60 price range AT&T's Stephenson suggested felt right in December. While that's still more than Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) charges per month for access to a cable alternative called YouTube TV, YouTube TV is also believed to be losing money. Hulu, mostly owned by Walt Disney (NYSE:DIS), asks $45 per month for access to live broadcasts, but it, too, remains unprofitable largely because of the steep expenses associated with live television. But archived, on-demand content is relatively cheap.It wouldn't be unreasonable to expect rival subscription TV players to also start ratcheting their rates up now that there's no "early market share" to secure.As for a non-broadcast streaming service from T, the planned platform from Time Warner will handle those duties.The hinted monthly price of between $16 and $17 per month for the Time Warner offering would make AT&T's option pricier than Netflix's basic package. In fact, at that price point, AT&T's service would be among the most expensive online, on-demand options. It would be an incredibly robust offering though, so it would have a chance to draw a big enough crowd to enable it to actually operate in the black.The typical on-demand price point for online video also seems to be stabilizing somewhere between $12 and $20 for a reason. That's where companies can have a shot at operating in the black but still remain competitive. The Bottom Line on T StockAT&T's television business is still a moving target. Odds are good that the company will continue to bleed TV customers through the end of the year, as the lower-ARPU crowd balks at price increases and finds other options. And, with the Time Warner service not expected to come online until late this year or early next year, the remainder of 2019 could prove frustrating for the owners of AT&T stock.Don't sweat it though. These are growing pains that represents progress along the learning curve. Sustainability is finally becoming a reality, although it's out of necessity.AT&T's rivals are even starting to embrace this reality too, as are investors in T stock who would now rather see healthier profit margins than big-time revenue. That's especially true, given the company's plans this year to pay down the lion's share of the $40 billion worth of debt it took on in order to complete the Time Warner acquisition.Just don't be surprised if the transition proves to be an erratic one for AT&T stock price.As of this writing, James Brumley held a long position in AT&T. You can learn more about James at his site, jamesbrumley.com, or follow him on Twitter, at @jbrumley. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post AT&T Stock's TV-Driven Turbulence Will Be Worth It appeared first on InvestorPlace.
(Bloomberg) -- Dish Network Corp. is in talks to pay at least $6 billion for assets that T-Mobile US Inc. and Sprint Corp. are unloading to win regulatory approval for their merger, according to people familiar with the matter.Dish could announce a deal as soon as this week for assets including wireless spectrum and Sprint’s Boost Mobile brand, said the people, who asked to not be identified because the matter isn’t public. The deal hasn’t been finalized and talks could still fall through, said the people.The potential divestitures are aimed at appeasing the Justice Department, which wants T-Mobile and Sprint to sell enough assets to ensure that the U.S. maintains at least four viable wireless players.Representative for Dish and the Justice Department declined to comment. Representatives for T-Mobile and Sprint didn’t respond to requests for comment.Dish rose 1.9% to $39.74 at 1:16 p.m. in New York trading, giving the Englewood, Colorado-based company a market value of about $18.6 billion. Sprint gained about 2.3% while T-Mobile rose 1.3%.T-Mobile agreed to buy Sprint in April 2018 for $26.5 billion, betting that together the carriers can build a next-generation wireless network to better compete with industry leaders Verizon Communications Inc. and AT&T Inc.Dish, co-founded by billionaire Charlie Ergen, had been on a shortlist of bidders for T-Mobile and Sprint assets favored by the Justice Department, people familiar with the matter said this month. Charter Communications Inc. and Altice USA Inc. were also on the list.T-Mobile and Sprint have already promised to sell Boost to get approval from the Federal Communications Commission. They also have to win over the Justice Department, which is concerned about the merger reducing the number of major U.S. wireless carriers to three.The companies are negotiating with the Justice Department after nine states and the District of Columbia sued to block the deal last week on antitrust grounds.(Updates companies’ share prices in fifth paragraph; adds background in seventh.)To contact the reporters on this story: David McLaughlin in Washington at email@example.com;Scott Moritz in New York at firstname.lastname@example.org;Nabila Ahmed in New York at email@example.comTo contact the editors responsible for this story: Elizabeth Fournier at firstname.lastname@example.org, ;Sara Forden at email@example.com, ;Nick Turner at firstname.lastname@example.org, Matthew MonksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Telecom has a high level of debt after acquiring Time Warner, but its prodigious cash flow will allow for steady debt reduction over time
BISMARCK, N.D., June 18, 2019 /PRNewswire/ -- At AT&T1, we've invested nearly $40 million in our North Dakota wireless and wired networks during 2016-2018. In 2018, AT&T made 326 wireless network upgrades in North Dakota. "Technology is such a critical component to all of North Dakota's industries, from the agricultural fields and the oil patch, to the state's growing autonomous systems and high-tech sectors," said Cheryl Riley, president, AT&T Northern Plains.
VidAngel aims to offer a family-friendly streaming service by filtering out objectionable content such as profanity, nudity, sex and violence.
CARSON CITY, Nev., June 18, 2019 /PRNewswire/ -- At AT&T1, we've invested nearly $425 million in our Nevada wireless and wired networks during 2016-2018. "We're always looking for new opportunities to enhance coverage for our customers and FirstNet subscribers," said Stephanie Tyler, president of AT&T Nevada. In 2018, AT&T made nearly 380 wireless network upgrades in Nevada.
Walmart Inc. said Tuesday that it will add wireless experts to 600 more stores by the holidays, part of an overall push to upgrade consumer electronics departments. More than 3,000 Walmart stores will have dedicated wireless experts. Walmart also announced that, starting with AT&T Inc. customers, Walmart shoppers will be able to purchase a complete "postpaid" cell phone on the Walmart website. Each carrier will ultimately have its own page for cell phone purchases. Walmart plans to improve its consumer electronics offering nationwide with live product demos, more accessories and additional enhancements. Walmart stock is up 17% for the year to date while the Dow Jones Industrial Average has gained 13.2% for the period.
Apple (AAPL) is expected to launch 5G-supported iPhones in 2020, much later than other prominent smartphone manufacturers like Samsung, LG, Huawei and Motorola.
ALBUQUERQUE, N.M., June 18, 2019 /PRNewswire/ -- At AT&T1, we've invested nearly $200 million in our New Mexico wireless and wired networks during 2016-2018. In 2018, AT&T made nearly 250 wireless network upgrades in New Mexico. AT&T will continue its investment in New Mexico with additional upgrades.
AT&T (T) has a competitive advantage over its rivals with extensive spectrum license wins that cover about 98% of the U.S. population.
U.S. stock futures were rising on Tuesday and European stocks turned higher as investors reacted to comments from European Central Bank President Mario Draghi that suggested further monetary easing just hours ahead of the start of the Federal Reserve's two-day policy meeting. Draghi laid the foundation for a potential re-opening of the ECB's controversial quantitative easing program, telling a conference in Portugal on Tuesday that the bank has room to buy more bonds in order to stoke inflation in the currency area. As for the Fed, traders are pricing in only a 20% chance of a rate cut from Chairman Jerome Powell and the Federal Open Markets Committee, with the balance of bets on a move in July that would take the key target rate to a range of 2% to 2.25%.
AT&T Inc NYSE:TView full report here! Summary * Perception of the company's creditworthiness is neutral * ETFs holding this stock are seeing positive inflows * Bearish sentiment is low * Economic output for the sector is expanding but at a slower rate Bearish sentimentShort interest | PositiveShort interest is extremely low for T with fewer than 1% of shares on loan. This could indicate that investors who seek to profit from falling equity prices are not currently targeting T. Money flowETF/Index ownership | PositiveETF activity is positive. Over the last month, ETFs holding T are favorable, with net inflows of $12.19 billion. Additionally, the rate of inflows is increasing. Economic sentimentPMI by IHS Markit | NegativeAccording to the latest IHS Markit Purchasing Managers' Index (PMI) data, output in the Telecommunications Services sector is rising. The rate of growth is weak relative to the trend shown over the past year, however, and is easing. Credit worthinessCredit default swap | NeutralThe current level displays a neutral indicator. T credit default swap spreads are near their highest levels of the last 3 years, which indicates the market's more negative perception of the company's credit worthiness.Please send all inquiries related to the report to email@example.com.Charts and report PDFs will only be available for 30 days after publishing.This document has been produced for information purposes only and is not to be relied upon or as construed as investment advice. To the fullest extent permitted by law, IHS Markit disclaims any responsibility or liability, whether in contract, tort (including, without limitation, negligence), equity or otherwise, for any loss or damage arising from any reliance on or the use of this material in any way. Please view the full legal disclaimer and methodology information on pages 2-3 of the full report.
Shares of AT&T (NYSE:T) haven't gone anywhere for a long time. As the telecommunications giant has struggled with cord-cutting and wireless competition headwinds over the past several years, the company's revenues and profits have struggled to make meaningful upward progress. As a result, T stock has failed to move much higher.Source: Shutterstock In mid-2012, the AT&T stock price stood at $33. Today, seven years later in mid-2019, shares still trade hands around $33.Lack of progress on the bottom line has prompted this sideways movement in T stock. Pre-tax profits in the year ended December 2013 were around $28 billion. Last year, they were around $25 billion. Without progress on the bottom line, we'll likely see further aimless trading.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut three big reasons drive belief that net profits will start making sustainable upward growth in 2019. Moreover, that trajectory should continue over the next several years. Plus, an underappreciated catalyst could spark a huge rally in the AT&T stock price.Thus, contrarians have four tailwinds to deliver upside in 2019 and 2020, which are as follows: Wireless Competition Headwind Is ModerationA ruthless pricing war in the wireless-coverage industry imposed a critical headwind on AT&T stock over the past several years. * 7 Top-Rated Biotech Stocks to Invest In Today Specifically, as wireless coverage has become largely commoditized, multiple wireless-coverage players offered similar plans as the major players; thus, price became the differentiating quality in this space. This has driven wireless prices across the industry lower, naturally weighing on AT&T's margins.This headwind should moderate going forward. Specifically, the industry's two biggest price "under-cutters," T-Mobile (NASDAQ:TMUS) and Sprint (NYSE:S), are set to merge. As these rivals stop competing, the volume of price-slashers across the whole industry should come down. The market will turn rational. That means competitors will emphasize their services' value and rely less on promotions.The result will be higher margins for AT&T, and likely a boost for T stock. The 5G Boom Will Provide a Healthy TailwindThe second tailwind for margins should be AT&T's ability to differentiate on the quality front through enhanced 5G coverage.The next big thing in the wireless coverage industry is the 5G boom. Mainstream rollout of this new coverage paradigm is set to happen throughout 2019 and 2020. Importantly, this rollout will "de-commoditize" wireless coverage: only the top dogs will be able to offer the best 5G coverage. AT&T is one of those top dogs.As such, AT&T can differentiate itself on quality, giving it more pricing power in the wireless-coverage market. That enhanced pricing power should flow through into bigger margins.Overall, then, AT&T's wireless margins should move meaningfully higher over the next several years. That should provide a robust lift to the company's profits. The Streaming Pivot Will Offset Cord-Cutting WeaknessThe other big headwind which has weighed on AT&T's profits over the past several years has been cord-cutting. Specifically, everyone and their best friend is switching to streaming. However, this dynamic has disadvantaged AT&T's linear programming business.But much like Disney (NYSE:DIS), AT&T is planning to offset this cord-cutting weakness through a full-scale pivot into streaming. With the acquisition of Time Warner, AT&T has amassed a large portfolio of rich and valuable content. It can then package that content into one streaming service, which is reportedly set to launch later this year.Given the content firepower behind this streaming service, it should launch to exceptional demand. In turn, I expect growth to a sizable subscriber base over the next several years, ultimately helping the bottom line. AT&T Stock Price Is Too Cheap for Its Own GoodGiven the three aforementioned tailwinds, AT&T's depressed profit base is finally ready to make sustainable moves higher. As it does, AT&T stock should rally immensely.Why? Because AT&T stock is too cheap for its own good. The equity's forward-earnings multiple is so low, and the dividend yield so big that the two are nearly equal (nine-times forward earnings, and a 6%-plus dividend yield).With such a dynamic, AT&T stock is not priced for profit growth: it's priced for continued profit erosion. As such, if profit growth does come into the picture, shares could benefit massively from the positive surprise. Bottom Line on T StockAT&T stock hasn't gone anywhere for a long time, mostly because profits also haven't gone anywhere. But profits should start moving higher in 2019 and continue to make upward progress over the next several years.As they do, T stock should rally in a meaningful way. Because most likely, shares are about as cheap as they get.As of this writing, Luke Lango was long T and DIS stock. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 5 Red-Hot IPO Stocks to Buy for the Long Run * 5 Stocks to Buy for $20 or Less * 4 Dow Jones Stocks Ready to Rise Compare Brokers The post 4 Big Reasons to Buy AT&T Stock for 2019 and 2020 appeared first on InvestorPlace.
Yahoo Finance's Adam Shaprio and Julie Hyman sit down with Cornell Capital Partner Ann Berry and Cumberland Advisors Chairman & Chief Investment Officer David Kotok to discuss.