There is investment appeal in AT&T!! (I think) _ Stock research
AT&T Investment Appeal!! (I think) _ Stock Research
Warren here.(About me page：About Me)
Warren’s PortfolioThe second-largest holding balance is the American telecom giant AT&T.
Due to fierce industry price competition, the acquisition turmoil of Time Warner, and the decline in cable TV subscriptions as streaming services like Netflix rise, the company has faced growth and risk concerns, causing its stock price to have recently been lackluster.
The industry is down (P/E around 6–8x), and AT&T is not doing well either.
But with all the preparations for 5G deployment, the Time Warner acquisition is likely to settle.
Why is it so low? Other industries commonly exceed P/E 10x or 20x.
Even essential infrastructure like power, water, and railways see such multiples.
But why is the telecom industry so low??
Indeed, with the rise of wireless communications, entry barriers for new competition are somewhat lower than for railways or water utilities.
But is the telecommunications business itself really that lacking in future prospects?
Developing and maintaining telecom infrastructure must require substantial know-how and technology.
Will a telecom operator rival to AT&T and Verizon truly emerge in the future?
As Warren, I feel NO.
Now, AT&T is offering a dividend yield of around 6%, making it look increasingly attractive for investment. Could this be a rare opportunity to invest in a high-dividend, stable stock?
Such is AT&T.
From the next earnings report, the segments will be reported differently.
① Communications
Mobile, Entertainment (Video, Broadband), Business Phone
② Warner Media
Turner, Warner Bros, HBO (Home Box Office)
③ Latin America
④ Advertising & Analytics
And with such a breadth of businesses under one umbrella, the time has come to prove its true value.
Whether to invest before results come out, or to wait until results are visible to some extent.
There are two options.
▼ By the way, here are Warren’s past AT&T articles.
Stock Research_AT&T_3
Management Study_AT&T_1
Stock Research_T(AT&T)_2_On the Eve of Earnings...
Stock Research_T (AT&T) — What Will Happen to the Merger?
Recommended past articles are here(^^♪
Warren runs a glossary of investment terms. Let’s study together!
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