Index Option Calls
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Index Option Calls
No Result
View All Result
Home Latest News

AT&T leads wireless stocks lower after company ‘reinforced market fears’ about the cost of growth

by
December 1, 2021
in Latest News
0
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

AT&T Inc. shares are leading a wireless selloff Tuesday after the company gave a presentation at an investor conference that one analyst said “reinforced market fears” about what its customer-acquisition spending could mean for broader industry trends.

AT&T Communications Chief Executive Jeff McElfresh said at a Wells Fargo conference Tuesday that the company is “expecting to take more than our fair share,” and “more than our market share,” when it looks at the growth opportunities in the wireless business. He also commented that the company’s outlook “doesn’t count on the industry being outsized in terms of postpaid growth,” or growth in subscribers who pay for their phone plans at the end of each monthly cycle.

RELATED POSTS

Is Trendspider The Best Stock Research Website? A User’s Comprehensive Guide

Is Motley Fool Rule Breakers The Best Stock Research Website? The Truth

The commentary prompted a blunt analysis from Bernstein analyst Peter Supino: “AT&T
T,
-4.44%

either doesn’t get that it cannot gain subscriber share sustainably while earning premium [average revenue per user] for average service, or it doesn’t care.”

AT&T shares are down 4.4% in Tuesday trading, while Verizon Communications Inc. shares
VZ,
-2.69%

are off 2.6% and T-Mobile US Inc.
TMUS,
-4.05%

shares are down 4.0%.

Supino noted that AT&T is upbeat about the profitability of its strategy because the company’s low churn rates compensate for higher costs to retain subscribers, but he’s worried about the company’s costs to acquire new subscribers.

“AT&T’s appetite for high subscriber growth will degrade industry profitability over time as it collides with insurgents bidding for acquisitions and/or reducing rates,” he wrote in a note to clients. “Slowly, these decisions reshape industry returns on capital.”

Even so, Supino thinks that wireless stocks might be getting unfairly punished.

“The share-price action in wireless stocks seems awfully forward looking for such a cash-generative and conservative industry,” he wrote. “In a year in which leverage ratios have passed their 5G peaks and all majors beat financial and operating expectations and with industry churn at all-time lows, we think wireless cash flows will be strong and that wireless stocks are oversold.”

Shares of AT&T have declined 16.2% in the past three months, while Verizon shares have dropped 8.1% and T-Mobile shares have lost 21.0%. The S&P 500
SPX,
-1.90%

is up 1.7% in a three-month span.

ShareTweetPin

Related Posts

Is Trendspider The Best Stock Research Website? A User’s Comprehensive Guide

by
October 4, 2023
0

Stock research websites offer a wealth of information. They provide crucial insights into market trends, stock performance, and potential investment...

Is Motley Fool Rule Breakers The Best Stock Research Website? The Truth

by
October 4, 2023
0

Finding quality stock research websites can take time and effort. With numerous platforms promising to offer unparalleled insights and guidance,...

Is Trade Ideas The Best Stock Research Website? Unraveling Its Potential

by
October 4, 2023
0

In today’s rapidly evolving financial landscape, stock research websites have become indispensable tools for investors. The modern stock market, characterized...

Is Seeking Alpha The Best Swing Trading Alerts Service? Beyond the Hype

by
October 4, 2023
0

Seeking Alpha is one of the most recognized platforms in the investment realm. Established as a repository for investment knowledge,...

Is Stock Rover the Best Stock Analysis Website?

by
October 4, 2023
0

Whether you’re a newcomer or have decades of experience in investing, this review on Stock Rover will help you steer...

Next Post

White House considering stricter international travel testing requirements amid omicron variant

Asia-Pacific stocks bounce as investors assess omicron Covid variant concerns; oil prices jump 2%

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • A Couple Stored IRA Gold at Home. They Owe the IRS More Than $300,000.

    0 shares
    Share 0 Tweet 0
  • A California Couple Spent Eight Years Building Their Dream Retirement Home in Costa Rica

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs picks new stocks to buy — and says these 5 have over 100% upside

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs says buy these stocks to play Web 3.0 and the metaverse

    0 shares
    Share 0 Tweet 0
  • In his final warning, this stock trading wizard — who made big money in bear markets and crashes — called this market a bubble like no other

    0 shares
    Share 0 Tweet 0
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.indexoptioncalls.com
No Result
View All Result
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.indexoptioncalls.com