|Day's Range||0.2900 - 0.2900|
AT&T customers may soo be free of having to deal with robocalls. The company is the first major wireless company to automatically block robocalls for its customers. Yahoo Finance's Seana Smith, Brian Cheung, Brian Sozzi and Emily McCormick discuss.
AT&T;’s WarnerMedia segment is planning job cuts from its ad sales unit as the company continues to reorganize the businesses it acquired.
With Q2's Netflix earnings just around the corner, here's what you can expect from the online streaming giant and the broader streaming space.
Reexamination of the notorious Atlanta Child Murders isarepoised to reemerge in the mainstream on two of the most-popular TV outlets.
Netflix (NASDAQ:NFLX) reports its second-quarter earnings on Wednesday after the bell. Since the last report, investors now have more insight as to the competitive situation currently faced by holders of NFLX stock.The move by Disney (NYSE:DIS) to take full control of Hulu leaves Netflix with a competitor on more fronts. Moreover, a new attitude toward content development shows increasing caution.Source: Shutterstock For now, this has had little effect on NFLX stock as it trades near all-time highs. Still, with the competitive landscape changing for the worse, one has to wonder if NFLX can continue to achieve new highs.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Dependable Dividend Stocks to Buy Given this uncertainty, investors should consider staying out of Netflix stock going into earnings. Watch for Both Earnings and GuidanceWall Street predicts the video streaming service will report earnings of 56 cents per share. If this number holds, it will represent a 34% decline from the same quarter last year. NFLX earned 85 cents per share in the second quarter of 2018. However, investors need to know that one-time charges affected profits in this quarter. For revenues, analysts forecast an increase of 26.3%, assuming that number meets the predicted $4.93 billion. The company brought in $3.91 billion in the same quarter last year.However, investors should also pay attention to forward guidance, primarily because its business environment will quickly become more competitive. As a result, events seem to signal retrenchment at Netflix. The company will soon lose content from Disney as Disney+ launches on November 12. With Hulu, the competition from Disney will now affect Netflix with both child and adult-oriented programming. Waning Euphoria Could Hurt Netflix StockMoreover, Netflix has decided to pull back on its own content development, or at least become more selective. From a financial point of view, one might see this as a positive for Netflix. This makes it less likely the company will fund more expensive flops. Understandably, the company wants to avoid repeating a $200 million mistake like "Marco Polo," or the $115 million disappointment that was "Triple Frontier."However, the unbridled optimism helped to take Netflix stock to its trailing price-to-earnings (PE) ratio of 104. Analysts expect average annual earnings growth of 49% per year for the next five years. This has helped elevate the PE ratio. However, with less optimism to fuel a higher multiple, NFLX stock could easily see multiple compression as a result.The dominance Netflix enjoyed in the streaming industry also influenced the multiple. The moves by Disney threaten that industry leadership. Also, Comcast (NASDAQ:CMCSA), Amazon (NASDAQ:AMZN), and AT&T's (NYSE:T) WarnerMedia have rolled out appealing alternatives. Further, products such as the streaming box offered by Roku (NASDAQ:ROKU) allow viewers to easily switch between streaming services.Also, the NFLX stock price may have reached an inflection point. NFLX recovered quickly from the December slump. However, it had twice pulled back when the price approached $400 per share. With the current price of around $365 per share, this could leave little room for growth. The Bottom Line on NFLX StockBoth the price action and the competitive developments in recent months could bode poorly for NFLX stock. For most of the decade, NFLX surged higher as it displaced both video stores and increasingly, cable and satellite TV to dominate the streaming industry.Companies like Disney, Comcast, and AT&T have responded with alternative streaming services. Also, the increasingly cautious attitude on content development could help to kill the euphoria that drove NFLX stock to triple-digit PE ratios.At Netflix's current price, investors must also contend with the inability for NFLX stock to stay above $400 per share. Not only must the company beat earnings and revenue estimates, but it must also impress Wall Street by issuing more positive guidance. Given these conditions, investors may have to worry as much about beating multiple compression as they do about exceeding estimates.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dependable Dividend Stocks to Buy * 10 Stocks Driving the Market to All-Time Highs (And Why) * 7 Short Squeeze Stocks With Big Upside Potential The post Time to Turn Cautious on Netflix Stock as Company Announces Earnings appeared first on InvestorPlace.
Healthy demand for core 5G technology and equipment will likely drive Ericsson's (ERIC) Q2 revenues. However, unfavorable mix between coverage & capacity and services is expected to weigh on margins.
Microsoft's (MSFT) robust execution and better-than-expected demand from customers for hybrid cloud offerings is likely to act as another tailwind.
More than three-quarters of U.S. households still subscribe to pay TV, and sports are one bucket of content that we're willing to shell out big bucks for.
(Bloomberg) -- Makan Delrahim, the U.S. Justice Department’s antitrust chief, is trying to shape a deal combining T-Mobile US Inc. and Sprint Corp. that he can pitch as a win for consumers. Here’s how he may do it.If the $26.5 billion deal is approved, it’s likely to include conditions that give satellite TV provider Dish Network Corp. enough airwaves, prepaid customers and network access to emerge as a new national wireless competitor.That would allow T-Mobile and financially struggling Sprint to merge and create a stronger No. 3 rival to AT&T Inc. and Verizon Communications Inc. Dish’s role would satisfy the government’s longstanding demand that there be four national mobile-service companies remaining.“The right deal could be a genuine win for consumers, and if Delrahim structures it right, the facts and history will stand by him,” said Jonathan Chaplin, an analyst with New Street Research LLC.The Justice Department is nearing a final decision. While the broad outline of an accord has been established, key issues are still being debated -- including possible limits on Dish’s ambitions as a wireless carrier. The company owns billions of dollars in unused airwaves that could be tapped to create an even more formidable competitor if it’s free to obtain sufficient outside investment to build its own network, according to people familiar with the matter.Under that broad outline, Sprint’s airwaves would land in more financially stable hands. The No. 4 U.S. carrier has the most mobile-phone spectrum in the U.S. but has limited ability to build a network given its years of losses and financial constraints. Combining with No. 3 T-Mobile would solve those problems.Opponents LurkEven if Delrahim gives his blessing, he’ll still have to convince opponents that consumers won’t see higher prices and fewer choices. One point he’ll likely to highlight is that the deal provides a path to putting Dish’s trove of airwaves to work. The department declined to comment.Skeptics point out that the track record for competitors created by divestitures has been dismal. French communications firm Iliad SA became Italy’s fourth carrier last year after buying assets divested by two larger rivals that merged. Iliad had an initial surge in subscriber growth, followed by a slowdown across the sector.“The premise that this deal will be good for everyone may be a little overly optimistic,” said Phil Berenbroick of Public Knowledge, a consumer advocacy group in Washington. “It’s obvious how harmful they think the deal is if they have to create a remedy as extravagant as this.”New KidThe shift to wireless will be a challenge for Dish, which is better known as the second-largest U.S. satellite TV provider. Dish has no experience selling phones or operating a mobile service. As part of the deal taking shape, the company would take over fewer than 9 million prepaid customers from Sprint to get its wireless business started. But that’s a tiny runway to competing against incumbent carriers with 10 times more subscribers.The future looks better for T-Mobile. With Sprint’s spectrum, it will have nearly twice the wireless capacity of any other carrier. The company’s cost per gigabyte, a measure of how expensive it is to deliver service, will be cut in half, Chaplin said.“If that isn’t a recipe for lower prices and share gains, I don’t know what is,” he said.Judgment DayThe merger has already won a nod from the chairman of the Federal Communications Commission, provided the combined company divests its Boost prepaid business, freezes prices and deploys a 5G network that would cover 99% of the U.S. population within six years.If the Justice Department approves, T-Mobile and Sprint would gain an important ally as they fight a lawsuit challenging the merger brought in June by 13 states and the District of Columbia. The states argue the tie-up will harm competition and lead to higher prices.Chaplin said investors may provide a crucial clue when the Justice Department announces its now-expected approval.“Watch what happens to the stock price of AT&T and Verizon on the day the deal is announced,” he said. “That will be the best litmus test of whether the deal is good for consumers, or not. If their stock prices fall, it is probably a good deal for consumers.”\--With assistance from Todd Shields.To contact the reporters on this story: Scott Moritz in New York at firstname.lastname@example.org;David McLaughlin in Washington 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.
HBO is making a big bet charging a premium price for its content, particularly as streaming grows larger, but more fragmented. How important is Friends?
Netflix (NASDAQ: NFLX) continues to trend towards yearly highs, ahead of its earnings report on July 17, after the market closes. There still are some exciting days ahead for Netflix stock.Source: Shutterstock And why not? Neither valuations nor debt levels matter because the streaming giant is buying up quality content to grow subscriptions.So long as subscriptions climb higher globally, investors should keep accumulating Netflix stock.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond Competition Heats UpThe Walt Disney Company (NYSE: DIS) announced in April its own streaming service, Disney+. Yesterday, ahead of the announcement of its upcoming streaming service, AT&T (NYSE: T) pulled "Friends" from Netflix.Competitors are desperately rushing to bulk up its content to attract subscribers. Traders yawned after the news. The stock barely fell at all in recent months other than testing the $340 level at the 200-day moving average.Netflix stock closed recently at $381.Netflix investors are betting that HBO Max, which launches in the spring of 2020 will not lure its subscribers away. Similarly, Disney may have a rich library of old cartoons and movies but it, too, may fail to beat Netflix.The late entry by these firms suggests both Disney and AT&T will need to suffer losses for a few quarters at the very least. It needs to beat Netflix on subscription rates to take Netflix's market share.Fortunately, Netflix has a number of great TV hits. Stranger Things, The Crown, Orange is the New Black, and Black Mirror are only a few solid shows subscribers may enjoy.On the movie front, I am Mother and Roma are some titles available on the service. At worst, Netflix subscribers may sign up for HBO Max or Disney+ concurrently. And when they realize that Netflix is still the better option, they may cancel the second subscription. RisksDespite my confidence for Netflix holding up against the competitors, AT&T could stand a chance in growing and taking market share. With Friends and the DC Universe service rolled together, HBO Max could prove successful.It has to be. AT&T delayed its streaming service until next year and has no room for a botched release.NBCUniversal will yank The Office from Netflix in 2021 and Comcast (NASDAQ: CMCSA) will bring it back to its own streaming services. Though this service is another competitive threat for Netflix, Netflix subscribers could binge watch the show before it is removed.If that happens, the viewership for the show will fall when Comcast takes it back. Growth OpportunitiesNetflix's record-breaking Season 3 of Stranger Things signals more things to come. 40.7 million households watched the third season while 18 million watched the entire season.Subscribers may very well keep paying the monthly rate as they wait for Netflix to release the fourth season.Netflix's global expansion continues to find success. The company is finding that the longer it has been in a territory like Europe, the better it understands its audience.In the upcoming earnings report, investors may safely expect the company to report continued strength from global subscriptions growth.In Q1/2019, Netflix benefited from scaling its business. Content and marketing spend grew at a slower pace than revenue, lifting margins.Growing awareness for its brand and for hit shows like Stranger Things should lead to profit margin growth in the upcoming earnings report. Needless to say, a strong subscriber growth number will send Netflix back to yearly highs, if not new yearly highs.Netflix forecast a 7% year-over-year growth in subscribers in the second quarter. Growth is more concentrated internationally, while price changes in the U.S. could slow the addition of new subscriptions. Still, the higher prices should help add to profitability. Valuation and Your Takeaway on Netflix StockNetflix's increasing rate of growth in international subscribers is what will get investors excited. It also makes the $419 price target, or an upside of 10%, seem too conservative a valuation.Source: BusinessQuantConservative investors may prefer to wait for the stock to re-test the $340 - $360 low. A subscriptions growth rate miss might just send the stock lower. But if Netflix crushes estimates again, the stock may not end up dipping.Disclosure: As of this 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 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post Netflix Stock Might Have Plenty of Upside Ahead Earnings appeared first on InvestorPlace.
InvestorPlace's Brett Kenwell recently suggested that AT&T (NYSE:T) was a good buy at $32. Although Brett views the 6% yield on T stock as very attractive, he believes investors interested in buying the company's stock can get a better entry point in the low $30s. Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsI'm not a fan of T stock primarily because of its debt. However, any time you can buy a stock for less, I think you should try to do so.Kenwell argues that despite having $167 billion in debt -- most of which was added to buy Time Warner -- the cash flow the content creator delivered to AT&T more than makes up for the additional leverage. And let's not forget once more that juicy 6% yield -- a dividend payment that has been increased for 35 straight years -- makes America's largest wireless carrier an income investor's dream stock. * 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond I'm here to say that investors should never buy AT&T stock for its 6% yield. Here's why. Can You Do Better?Of the 505 S&P 500 stocks (that includes dual classes), AT&T has the 10th highest dividend yield according to Finviz.com. Currently, AT&T's debt represents 68% of its market cap.I would argue that if any of the nine S&P 500 stocks with a higher yield than T stock have less debt as a percentage of their market cap, you ought to at least consider those stocks if you are focused on income rather than capital appreciation. After looking at each of the nine stocks possessing higher dividend yields, none of the stocks are in any better shape from a debt perspective than AT&T. Occidental Petroleum (NYSE:OXY) would have been if not for its pending $57 billion acquisition of Anadarko Petroleum (NYSE:APC) adding $30 billion in debt. Its debt post-acquisition will account for more than 100% of its market cap, although it does plan to sell some non-core assets to bring down leverage. So, at least from a higher yield perspective, you can't get an S&P 500 stock that delivers a better yield without sacrificing the quality of cash flow, etc.However, if you include all stocks with a market cap of $2 billion or higher, I'm confident you could find a stock with a stronger balance sheet. According to Finviz, 195 stocks have a dividend yield of 5% or higher. I found a couple of examples that fit the bill. Example 1: BCEBeing from Canada, I just had to pick a Canadian stock. BCE (NYSE:BCE), one of Canada's largest media companies, currently yields 5.1%. At the end of March, it had $21 billion in short and long-term debt, which represents 50% of its current market cap of $41.5 billion. It is very similar to the new AT&T in that it also has a media division that owns TV and radio stations, cable networks, and Pay TV channels. It's one of Canada's most successful content creators. Although it can't hold a candle to Time Warner in terms of both the amount of content and the revenue generation, it does provide its wireless and landline businesses with excellent opportunities for cross-promotion.Is it worth giving up 90 basis points of yield for significantly less debt? If you're an income investor, I think it is. Example 2: Kohl'sThis second example, if you're a current AT&T shareholder, will probably make you laugh, but that's okay. I'm not here to evaluate the merits of which sector is a better investment. I'm merely pointing out stocks with better debt profiles that have a high dividend yield. I'm speaking about Kohl's (NYSE:KSS), the value-priced department store with more than 1,100 locations in 49 states. Sure, retail's still got a lot of weakness, but overall, I think the future remains positive despite the brick-and-mortar store closures over the past two years. As I write this, Kohl's dividend yield is 5.6%, 40 basis points less than AT&T. However, its $1.9 billion in debt is only 24% of its current market cap of $7.8 billion. Its yield is higher than usual due to a 21% decline in its stock price year to date through July 10 (a 27% drop including dividends). While Kohl's can't hold a candle to AT&T's cash flow, it generated $1.9 billion over the trailing 12 months through May 4, despite a 3.4% decline in its same-store sales in the first quarter and a 2.9% decrease in overall revenues. Despite the unusually slow start to its fiscal year, Kohl's expects earnings per share of at least $5.80 in fiscal 2019, a forward P/E of just 8.3.From where I sit, Kohl's provides an attractive dividend yield with better upside potential than AT&T. The Bottom Line on T StockAs I said in the beginning, I'm not a fan of AT&T because of its debt. However, if you own it merely for the dividend yield, you might want to reconsider your reasoning. Owning a stock for its yield alone is never a good idea. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Buy for Less Than Book * 7 Marijuana Stocks With Critical Levels to Watch * The 10 Best Dividend Stocks to Buy for the Rest of 2019 and Beyond The post AT&T Is Not Worth Buying Just for Its 6% Yield appeared first on InvestorPlace.
Netflix's (NFLX) second-quarter 2019 results are likely to be driven by strength in content portfolio despite stiffening competition.
While Crown Castle International's (CCI) site-rental revenues will likely improve, intense competition amid growth potential of the tower sector might dent net revenues from network services.
When it comes to finding great dividends, the telecoms can't be beat. Thanks to their stable demand and fixed operating costs, the major telecommunication providers have long been able to provide their investors with a steady income and high yields. That's certainly been true for giants AT&T (NYSE:T) and Verizon (NYSE:VZ) over the last decade or so. And, as a result, both VZ and T stock have become staples of many retirees' portfolios.Source: Shutterstock However, growth at both AT&T and Verizon has slowed in recent years. Wireless saturation is near 100% and upstarts like T-Mobile (NASDAQ:TMUS) have driven down prices for wireless and data plans. That hit T & VZ right in their wallets. To compensate for that, each telecom took a similar, yet different path to finding future growth.The question now is: which of the two major telecom stocks -- AT&T or Verizon -- makes more sense for your portfolio today?InvestorPlace - Stock Market News, Stock Advice & Trading Tips VZ & T Stock Make Some Big MovesThese days, investors can't think of Verizon or AT&T as strictly old-fashioned telecoms. It's no secret that landline usage has fallen off the map. Meanwhile, new wireless subscriber growth has basically flatlined. At this point, everyone has a smartphone and perhaps a secondary device hooked up to wireless networks. Moreover, thanks to fungibility among carriers and price wars, consumers are able to switch with ease. Because of this, the major U.S. telecoms like T and VZ have had to look elsewhere for growth. * 10 Stocks to Sell for an Economic Slowdown For AT&T, that meant becoming a media powerhouse. Cable television provider Comcast (NASDAQ:CMCSA) set the trend when it purchased NBCUniversal. T followed a similar playbook by adding exposure to cable with its buyout of DirecTV. These gave the ability to offer triple-play services as well as wireless service to its consumers. Like CMCSA, AT&T then added content origination with its mega-sized buyout of Time Warner. This acquisition gave T ownership of HBO, Turner Broadcasting as well as Warner Bros. entire movie catalog. The idea was that AT&T could now bundle original content with its own private network of mobile/wireless video and satellite services.Verizon is playing in the same sandbox, albeit it's building a different castle. VZ decided to go hard into web properties. This included buying AOL and Yahoo. The idea was that the firm could become a major player in digital advertising and the mobile web. The firm also beefed its other tech operations with Telogis and Fleetmatics Group. These cloud operations allowed businesses to take advantage of fleet operations software that can be used on VZ's wide and high-speed wireless networks. Not What VZ Stock & T Stock Bargained ForAs you can see, the shift in both AT&T and Verizon was designed to offer tangential services using their huge networks. T was setting itself to be an all-in-one media and content provider. It would make the movies and then distribute them over its satellite and mobile video operations. And there would be some exclusivity in that. AT&T recently unveiled its plans for its own streaming service to accomplish this goal. VZ went hard into the lucrative world of digital advertising, data mining and cloud services.Unfortunately, neither operation has proved too fruitful for either T or VZ.The combination of AOL and Yahoo is basically worthless for Verizon. At the end of last year, the firm wrote down the goodwill of the deals by just under half -- or a whopping a $4.6 billion. And the hits kept coming. Verizon Media showed a big 7.2% decline in year-over-year revenues. The company specifically blamed lower ad revenues for the dip.Things haven't been great for AT&T either. It turns out providing cable services is just as sticky as providing wireless ones. People continue to cut the cord at a fevered pace and adopt streaming instead. That's hurt DirecTV in a big way. The firm has lost nearly 1.3 million video subscribers over the last two quarters. It's streaming service -- DirecTV Now -- has lost nearly 20% of its total net subscribers in the last 6 months. This is a huge issue if your entire M.O. was getting people to watch your produced, movies and T.V. shows on your exclusive networks. The firm continues to bleed traditional cable subscribers -- via its U-Verse business -- as well.So, neither transition is working out the way AT&T and Verizon planned. To make matters worse, both stocks are now heavily indebted because of the buyouts, mergers and plans to change their business model. At the end of March, T had more than $169 billion in debt on its balance sheet. Verizon is doing a tad better at $113 billion. That's a major problem for both stocks if these efforts don't pan out. Should You Buy T Stock or VZ Stock?Given the struggles at both AT&T and Verizon, neither one makes a compelling purchase right now. Those debt loads are pretty scary considering the assets used to make them aren't performing as planned. Honestly, I'd be worried about their dividends -- the reason why people buy them in the first place -- if things don't improve.But if I had to make the decision today, I'd most likely go with Verizon. The firm has at least acknowledged that its move in advertising was a poor choice and has removed the Band-Aid on these operations. The write-downs, layoffs and cost-cutting efforts will make it much easier for the firm to bounce back. And these brands -- like Tech Crunch and the Huff Po -- are valuable to someone, if it decides to sell them. Meanwhile, it's gone gung-ho on its 5G network services. * 7 Stocks to Buy for Monster Growth in the Second Half of 2019 On the flip side, AT&T has decided to double-down on its problems -- launching four different streaming services in a bid to regain customers.In the end, both major telecoms have plenty of warts and may not be big buys at all. But if investors were looking at them both, VZ stock gets the slight nod over T stock.At the time of writing, Aaron Levitt did not hold a position in any stock mentioned. The post Stock Showdown: AT&T Stock and Verizon Are Both Risky Plays appeared first on InvestorPlace.
Investment company Pachira Investments Inc. (current portfolio) buys AT&T; Inc, Alphabet Inc, sells SPDR MidCap Trust Series I during the 3-months ended 2019Q2, according to the most recent filings of the investment company, Pachira Investments Inc.. Continue reading...
Both sides in the AT&T; and Nexstar battle launched fresh salvos on Thursday over their days-long impasse – and the rhetoric hardly cooled off.
“I know that change can be challenging. But remember: Change is also an opportunity, and our ambition is big," a WarnerMedia executive wrote in a company memo.
AT&T plans to post its second-quarter results on July 24. Before we dive into its estimates, let’s recap its first-quarter performance.
Shares of Netflix (NFLX) have tracked the S&P 500 over the last six months after they skyrocketed to start 2019. Now, let's see if investors should think about buying NFLX stock before it reports Q2 earnings.