|Bid||0.00 x 800|
|Ask||0.00 x 800|
|Day's Range||79.03 - 80.09|
|52 Week Range||59.96 - 85.22|
|Beta (3Y Monthly)||0.57|
|PE Ratio (TTM)||20.83|
|Earnings Date||Oct 28, 2019 - Nov 1, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||88.53|
Mike Sievert, President and Chief Operating Officer of T-Mobile US, Inc., J. Braxton Carter, Executive Vice President & Chief Financial Officer of T-Mobile US, Inc., and Neville Ray, Executive Vice President & Chief Technology Officer of T-Mobile US, Inc.
T-Mobile and Metro by T-Mobile today announced they will offer the latest products from Apple, including iPhone 11 Pro and iPhone 11 Pro Max, a new pro line for iPhone, as well as the new dual-camera iPhone 11. T-Mobile will also offer Apple Watch Series 5 with Always-On Retina display and the new seventh-generation iPad.
If the U.S. wants to be a 5G wireless leader, freeing up more radio spectrum for 5G networks will be key. Problem is, the U.S. lags in opening up mid-band airwaves for 5G wireless services.
When you're a big company, you need to think big in order to keep on growing. That was the thought process behind AT&T's (NYSE:T) moves into becoming not only a distributor of content but a creator of one as well. As wireless adoption slowed, T needed to significantly move the needle to continue making investors happy. Unfortunately, it may be having the opposite effect on AT&T stock.Source: Shutterstock After struggling to integrate Time Warner into its system, never realizing the full potential of bundling as well as a few other missteps, T stock has now become the target of some very angry shareholders. That includes activist investors at Elliott ManagementAnd Elliott may have a point.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAT&T's big plans haven't come to fruition and they may never. Considering the debt that AT&T is now ladled with, it might be time to cut losses and run. For investors, AT&T stock may not be the risk-free investment they think it is. Elliott's involvement brings many of its issues to the forefront. AT&T's Big Moves Aren't WorkingAfter the growth of the wireless boom slowed to trickle and fungibility among carriers resulted in a price war, AT&T was caught between a rock and hard place. * 10 Stocks to Sell in Market-Cursed September Owners of AT&T had grown accustomed to getting some "oomph" with their investment. The firm couldn't go back to being a boring widow and orphan stock. So, as Verizon (NYSE:VZ) went the web route and T-Mobile (NASDAQ:TMUS) began snagging up weaker rivals, AT&T decided to copy the creator/distributor model that worked for several other cable providers.The company set 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.The problem is, while this worked for Comcast (NASDAQ:CMCSA), it really hasn't worked so well for AT&T.It turns out, providing cable TV services is just as fungible as wireless service. People continue to cut the cord at a fevered pace and adopt streaming instead. For AT&T's, DirecTV this has resulted in the fleeing of subscribers. The same could be said for T's U-Verse traditional cable service.When AT&T first purchased DirecTV, it had 20.3 million US customers. Adding in U-verse brings the total to 26 million. After AT&T reported earnings in the second quarter, that number had dipped to just 21.6 million. That's a 17% drop since the DirecTV buyout.Whoops.This is a huge issue if your entire future is based on getting people to watch your produced movies and T.V. shows on your exclusive networks. With people fleeing AT&T's distribution platform, the big buyout of Time Warner starts to make less sense. It can't just offer that content to its subscribers because there are no subscribers left. In order to justify the purchase of Time Warner, you have to lose the exclusivity. And once you do that, the model is broken. AT&T Gets a Letter From ElliottAll of this brings us to Paul Singer and Elliott Management. The activist shop disclosed a $3.2 billion stake in the firm and sent a strongly worded letter to AT&T's management indicating that its recent blunders have hurt shareholders.In its letter, Elliott partner Jesse Cohn and associate portfolio manager Marc Steinberg wrote that AT&T should sell some of its non-core businesses such as its Mexican wireless operations. More importantly, it should cut DirecTV loose either via a spin-out or asset sale. Likewise, AT&T needs to focus on being more profitable and generate more revenue per employee. Something rival Verizon does well. Also on the menu was increased buyback and dividend programs.If management at AT&T complied and work with Elliott's suggestions, AT&T stock could be worth north of $60 per share by 2021. That would be a roughly 65% gain from recent closing prices. Elliott Has a Point with AT&TThe reality is, Singer and Elliott have a point with their demands. The buyout of DirectTV literally happened at the peak of cable T.V. and the beginning of streaming television.Since then, firms like Netflix (NASDAQ:NFLX) and Disney (NYSE:DIS) have started to eat traditional TV's lunch. This is evident by the drop in AT&T's subscribers, and the company can't seem to compete. It's latest streaming efforts after DirectTV Now was bust is a new streaming service that looks just like cable tv and costs a staggering $93 a month.This isn't a smart business, especially considering the massive debt AT&T took on to do all of this. The firm spent $67 billion purchase DirecTV and another $109 billion in order to complete the buyout of Time Warner. That's insane. What's worse is that T is going to have to spend a ton in order to build-out its 5G network in order to compete with VZ and TMUS. That will just put more debt on the pile.So, stopping the bleeding makes sense. Spinning out DirecTV along with some of that debt could significantly reduce AT&T's burden. Meanwhile, Time Warner's assets aren't bad. Monetizing them better and creating more partnerships with other streaming networks could lead to bigger profits down the road from the division. The key is that the exclusivity is not going to happen. A Longer Road for AT&T StockIn the end, AT&T's big plans haven't worked out and shareholders have suffered. Elliott may be on to something by "cutting the cord" and freeing AT&T from the DirecTV shackles.Investors seem to like the idea as AT&T stock jumped at the announcement that the firm had taken a stake. The question is, whether or not, Elliott is able to make good on its ideas and get T's management to budge. In the meantime, investors may not want to stick around to find out.Disclosure: At the time of writing, Aaron Levitt did not have a position in any stock mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Stocks to Sell in Market-Cursed September * 7 of the Worst IPO Stocks in 2019 * 7 Best Stocks That Crushed It This Earnings Season The post Elliott Management May Be Right About AT&T Stock appeared first on InvestorPlace.
Last week, Illinois joined 15 other states in efforts to stop T-Mobile and Sprint from merging. Let's take a look at how Dish could benefit.
Attorneys general from 48 US states announced a Google antitrust probe yesterday to look into the company's advertising and Internet search practices.
The acquisition will enable CenturyLink (CTL) to enrich its video content offerings in bandwidth constrained areas by utilizing edge computing and data driven approach of Steamroot.
Currently, T-Mobile (TMUS) stock is trading at 19.75x analysts' fiscal 2019 EPS estimate of $4.01, and 16.50x their fiscal 2020 estimate of $4.80.
A group of T-Mobile employees sent a letter to Deutsche Telekom CEO Timotheus Höttges during his recent visit to the company's Bellevue headquarters.
(Bloomberg) -- The Chinese professor a Silicon Valley startup accused in a civil lawsuit of stealing its trade secrets for Huawei Technologies Co. now faces a federal criminal charge, as the U.S. escalates its crackdown on the telecom giant.Bo Mao, a professor at Xiamen University in China and a visiting professor of computer science at the University of Texas at Arlington, is charged with conspiracy to commit wire fraud against a California technology startup to obtain its “property” on behalf of a Chinese telecommunications company.The prosecution is the latest in a series of moves against Huawei by the U.S. The government is pursuing criminal cases against the networking company for allegedly violating U.S. sanctions on Iran and stealing trade secrets from T-Mobile US Inc. It has banned Huawei’s technology and accused the company of helping Beijing carry out espionage. Huawei has denied any wrongdoing and accused the U.S. of singling it out for political reasons.Mao’s case is being handled by Assistant U.S. Attorney Alexander Solomon in Brooklyn, New York, who is also prosecuting the Iran case.Mao, initially held without bail after prosecutors argued he posed a flight risk and could obstruct justice, was freed last month on a $100,000 bond after he agreed to waive indictment, according to court records. A waiver of indictment can signal a guilty plea, possibly along with an agreement to cooperate with prosecutors.John Marzulli, a spokesman for U.S. Attorney Richard Donoghue in Brooklyn, declined to comment. Marion Bachrach, a lawyer representing Mao, didn’t return a voicemail seeking comment. Jeff Carlton, a spokesman for the University of Texas at Arlington, didn’t immediately return a call seeking comment on Mao.Read More: Huawei Iran-Sanctions Evidence Is Too Risky for China to SeeWhile federal prosecutors in Texas didn’t identify the Chinese telecom company or its alleged victim, their complaint parallels the allegations CNEX Labs Inc., a Silicon Valley startup, made against Huawei in the civil case. In that case, CNEX accused Mao of helping Huawei steal the technology by entering into an agreement with CNEX to obtain a circuit board, purportedly for academic research, in 2016.Acting with another professor in the U.S., prosecutors alleged, Mao emailed the U.S. startup, seeking to buy its proprietary technology “to build an experimental program,” according to an email they cited. The startup later agreed to provide the technology, they said.“It is clear that Bo Mao secretly provided the Victim Company’s proprietary information to Company 1 in violation of the agreement,” prosecutors said, in apparent respective references to CNEX and Huawei.Huawei lost the civil trade-secrets case in June, though the jury declined to award damages to CNEX. CNEX contended that Huawei had posed as a potential customer to get secret details of its plans and, when that didn’t work, persuaded Mao and Xiamen University to work as a research partner with CNEX to obtain the plans surreptitiously.Mao was arrested on federal charges on Aug. 14. His case was transferred from Fort Worth, Texas, to Brooklyn and assigned to U.S. District Judge Ann Donnelly, who is also presiding over the Iran case.She scheduled a Sept. 11 hearing for Mao.The case is U.S. v. Mao, 19-cr-392, U.S. District Court, Eastern District of New York (Brooklyn).\--With assistance from Susan Decker.To contact the reporter on this story: Patricia Hurtado in Federal Court in Manhattan at firstname.lastname@example.orgTo contact the editors responsible for this story: David Glovin at email@example.com, Peter Jeffrey, Peter BlumbergFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- AT&T Inc.’s sweeping transformation from Ma Bell to a multimedia titan has gone both too far and not far enough for Elliott Management Corp.Billionaire Paul Singer’s New York hedge fund disclosed a new $3.2 billion position in AT&T, taking on one of the nation’s biggest and most widely held companies with a plan to boost its share price by more than 50% through asset sales and cost cutting.Investors applauded the development, briefly sending AT&T shares on their biggest intraday rally in more than a decade.For Singer, the move represents one of the biggest bets in the four decades since the hard-driving activist investor founded his firm. And it strikes at the core of the way AT&T has built its bigger-is-better empire: a costly M&A binge that has turned the carrier into one of the most indebted companies on Earth.“There will be a fight,” said Chetan Sharma, a wireless-industry analyst.Elliott outlined a four-part plan for the company in a letter to its board Monday. The proposal calls for the company to explore divesting assets, including satellite-TV provider DirecTV, the Mexican wireless operations, pieces of the landline business, and others.It urges AT&T, led by Chief Executive Officer Randall Stephenson, to exit businesses that don’t fit its strategy, run a more efficient operation and stop making major acquisitions. Elliott said it would also recommend candidates to add to AT&T’s board.In response, AT&T said it would review Elliott’s recommendations and said many of them are “ones we are already executing today.”The telecom giant said its strategy is “driven by the unique portfolio of valuable businesses we’ve assembled across communications networks and media and entertainment, and as Elliott points out, is the foundation for significant value creation.”The carrier said it believes that “growing and investing in these businesses is the best path forward for our company and our shareholders.”Still, investors seem to think Elliott’s plan could wring more value from AT&T. The shares surged as much as 5.2% to $38.14 in New York trading Monday. That was the biggest intraday jump since March 2009 and put them at their highest level since February of last year. They later settled down to a 2.7% gain amid a broader pullback in the market.Elliott said the investment -- among its largest to date -- was made because the company is deeply undervalued after a period of “prolonged and substantial underperformance.” It argued this has been marked by its shares lagging the broader S&P 500 over the past decade.It pointed to a series of strategic setbacks, including $200 billion in acquisitions, the “most damaging” of which was its $39 billion attempted purchase of T-Mobile US Inc. That deal resulted in the largest breakup fee of all time when the government blocked it in 2011 -- about $6 billion in cash and assets.“In addition to the internal and external distractions it caused itself, AT&T’s failed takeover capitalized a viable competitor for years to come,” Elliott said.The hedge fund also slammed the subsequent acquisitions of DirecTV and media giant Time Warner Inc. That puts particular pressure on Stephenson, 59, who oversaw the deals Elliott criticized in the letter.But, while the position in AT&T is large, Elliott may have a difficult time pushing for change unless it gets other investors to back its stance. Its newly disclosed stake in AT&T represents just about 1.2% of the company’s total market value.Elliott’s plan also calls for aggressive cost-cutting measures that aim to improve AT&T’s margins by 3 percentage points by 2022. Those margins have come under pressure amid cord cutting in video and widespread discounting in wireless, and Elliott said competitors like Verizon Communications Inc. have done a better job addressing those headwinds.Elliott said in the letter it has identified opportunities for savings in excess of $10 billion, but the plan would only require cost cuts of $5 billion.Elliott is also calling for a series of governance changes, including separating the roles of CEO and chairman -- currently held by Stephenson -- and the formation of a strategic review committee to identify the opportunities at hand.Transformative DealsWith a series of deals over the past several years, AT&T has transformed itself from a traditional telecom company into a multimedia behemoth. The company bought satellite-TV provider DirecTV for $67 billion in 2015, leaping into first place among U.S. pay-TV companies. Elliott criticized that deal in its letter as having come “at the absolute peak of the linear TV market.”AT&T then moved firmly into entertainment and media with the $85 billion acquisition of Time Warner in 2018. That deal brought marquee assets such as HBO, CNN and Warner Bros.“Despite nearly 600 days passing between signing and closing (and more than a year passing since), AT&T has yet to articulate a clear strategic rationale for why AT&T needs to own Time Warner,” Jesse Cohn, a partner at Elliott, and Marc Steinberg, an associate portfolio manager, said in the letter. “While it is too soon to tell whether AT&T can create value with Time Warner, we remain cautious on the benefits of this combination.”High-Profile FightsElliott has a history of tackling some of the biggest and most high-profile companies around the globe, including EBay Inc., Pernod Ricard SA, and Bayer AG in the past year alone. The AT&T investment marks Elliott’s single largest equity investment with an activist slant.It’s not the first time Elliott has taken on a major telecommunications company, either. The hedge fund battled Vivendi SA for control of the board of Telecom Italia SpA, eventually winning control in 2018 in a fight that dragged on into this year.Those battles don’t always end in success. In Elliott’s proxy fight at Hyundai Motor Group earlier this year, investors opted not to elect its slate of directors at two of the South Korean manufacturer’s subsidiaries. But even in some of its major losses, like at Samsung Electronics Co., the repercussion of its agitations can send ripples beyond the proxy clash.Samsung managed to keep Elliott at bay in 2015 but touched off a series of events that resulted in a brief jail term for the electronics giant’s billionaire heir apparent for influence peddling, protests by hundreds of thousands of people in Seoul, and the downfall and imprisonment of South Korea’s president, Park Geun-hye.Heavy DebtAT&T is the most indebted company in the world -- not counting financial firms and government-backed entities -- with $194 billion in total debt as of June, a legacy of Stephenson’s steady clip of large acquisitions. The CEO used to keep a spreadsheet of a few dozen companies that he studies on his tablet to plan his next big deal, people familiar with the matter told Bloomberg in 2016.The stock is among the top 20 most widely held U.S.-traded companies among institutional investors, according to data compiled by Bloomberg. That’s partially because of its steady dividend, which totaled $2.04 a share last year, giving investors a reliable payout in good times and bad.What Bloomberg Intelligence Says“AT&T will likely be under greater pressure to streamline operations and wring better performance out of Time Warner following the involvement of activist investor Elliott Management, yet this probably won’t prompt a change in company strategy. ... Elliott’s recommendation to spin off the DirecTV satellite business isn’t practical, in our view, as AT&T likely needs its free cash to help fund its dividend.”\-- John Butler, senior telecom analyst, and Boyoung Kim, associate analystClick here to view the research.Phone companies have also traditionally been considered a safety net for investors in bad economic times because people still need to communicate, though AT&T’s exposure to the landline business has more recently been a drag on profits because more people are shutting off their home phones and going wireless-only.Elliott’s move also put AT&T back in the cross hairs of one of its biggest critics: Donald Trump.The president, whose Justice Department unsuccessfully opposed AT&T’s Time Warner acquisition and who has slammed CNN’s coverage of him, cheered on Elliott’s efforts.“Great news that an activist investor is now involved with AT&T,” he tweeted.\--With assistance from Olga Kharif.To contact the reporter on this story: Scott Deveau in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Liana Baker at email@example.com, Nick Turner, John J. Edwards IIIFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Shares of T-Mobile and Sprint have been trading in a narrow range since last month. The uncertainty of their pending merger has driven their performances.
Activist hedge fund Elliott Management revealed on Monday that it had taken a massive position in AT&T, saying the telecom giant can see its stock double by 2021.
AT&T;’s Q2 operating cash flow rose 39.6% YoY to $14.3 billion. AT&T; expects its free cash flow to grow 25.3% YoY to $28 billion in 2019.
(Bloomberg Opinion) -- T-Mobile US Inc. is trying to make the case that Sprint Corp. is on its deathbed, and that T-Mobile alone can save it. That’s rich coming from the company that happily helped put Sprint there. It’s also a misleading prognosis for Sprint. A Sprint pity party is one way T-Mobile is defending against a multi-state lawsuit that seeks to prevent the wireless carrier from taking over its weaker rival, and it used that reasoning in a court filing last week. Even though the deal already has the backing of the U.S. Department of Justice and Federal Communications Commission, 17 state attorneys general – who represent more than half the U.S. population – are challenging the transaction because of concerns that it will lead to higher prices, discourage innovation and hurt workers. Illinois, Oregon and Texas were the latest to join the now-bipartisan suit, whose trial date is set for Dec. 9. State officials are right to be concerned. T-Mobile and Sprint are the third- and fourth-biggest carriers, respectively, in a mainly four-carrier market. Lower prices and new features from them in recent years did a lot of good for customers, forcing industry leaders Verizon Communications Inc. and AT&T Inc. to offer more competitive data plans. But without Sprint, there isn’t as much incentive for T-Mobile to keep prices down. In fact, for T-Mobile to close its profit-margin gap with the larger carriers, it more likely would need to do just the opposite. The DOJ is looking to wireless market newbie Dish Network Corp. to help preserve some equilibrium, putting Dish on the receiving end of the concessions that T-Mobile and Sprint are required to make. However, Dish is still years and multiple billions of dollars away from becoming a formidable competitor to fill the hole Sprint will leave behind. As such, the DOJ and the FCC may not be fulfilling their duties to promote competition and ensure that corporate tie-ups serve the public interest. T-Mobile’s argument is that if its deal gets blocked, Sprint is going to go away anyway. That’s a half-truth. I’ve written time and again about Sprint’s financial troubles and strategic missteps, including this series of charts showing just how ugly Sprint looks as a stand-alone. The data are almost sympathetic to T-Mobile’s case. But a merger between T-Mobile and Sprint doesn’t save Sprint. It does rescue an investment turned sour for many shareholders, especially a billionaire named Masayoshi Son. He’s the leader of SoftBank Group Corp., Sprint’s Japanese controlling shareholder, and he wants to remove any trace of his misguided optimism about Sprint from SoftBank’s balance sheet, equity valuation and image. SoftBank is retaining a 27% economic interest in the new T-Mobile, a superior operator on healthier footing.T-Mobile is casting itself as Sprint's savior, but T-Mobile CEO John Legere has been dancing on Sprint’s grave for years. Legere, a shameless yet successful self-promoter, often crossed the line in these instances beyond healthy competition, tweeting mean-spirited jokes about his rival going out of business. There were times he called Sprint “a melting ice cube,” said the company may have to resort to raising money on Kickstarter, and asked for “any guesses on what Sprint will fruckup today” (a swipe at Sprint’s “framily plan” promotion for friends and family). He used the hashtag SprintLikeHell. I’m not pointing this out for the sake of it or to say Legere is a big ole meanie. It’s more about this: While Legere was dissing Sprint, he continued to boast to investors that T-Mobile was actually posing serious competition for Verizon and AT&T – something he promises a combined T-Mobile-Sprint will also do. Except the data paint a slightly different picture. For years, T-Mobile regularly disclosed so-called porting ratios, which tell how many customers T-Mobile lost to another carrier and vice versa. For example, starting in 2013, its porting ratio with Sprint mostly held above 2 and at times went above 4 and higher, meaning that for every subscriber T-Mobile lost to Sprint, it gained four Sprint customers. T-Mobile will say that the overwhelming majority of its “porting” has come from Verizon and AT&T, but that’s explained by the fact that those companies have larger subscriber bases than Sprint does. The reality is that T-Mobile inflicted far more damage on Sprint than to what it calls “the duopoly,” as this chart shows:To be fair, T-Mobile isn’t the predominant reason Sprint is in such a desperate state now. Its problems date back to Sprint’s ill-advised merger 14 years ago with Nextel, a network that became a money pit for the company. And Sprint was never able to dig its way out from a mountain of debt, largely deal-related. Meanwhile, in 2011, regulators stopped AT&T from buying T-Mobile, a move that set T-Mobile up for a turnaround and to become the fastest-growing member of the industry. Had that deal gone through, consumers’ bills may have looked very different in the subsequent years.Going forward, if Sprint were to get any cheaper, other deep-pocketed buyers outside of the industry would likely surface, such as Charter Communications Inc., Comcast Corp. and others. The idea of a cable giant owning Sprint might not seem like a better outcome, but it preserves a competitor in the wireless market and many more jobs. As the industry gears up for ultra-fast 5G wireless networks, there’s simply no way T-Mobile is the sole company interested in Sprint’s spectrum assets and subscriber base, even if its brand is beyond repair. So when T-Mobile tells a courtroom that Sprint needs it, you have to laugh.To contact the author of this story: Tara Lachapelle at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis 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.
Former Homeland Security Secretary Tom Ridge tells Yahoo Finance's Akiko Fujita, “It’s pretty clear that their conduct demonstrates time and time again they’re an instrumentality of the [Chinese] government.”