I thought I would take another look at AT&T since its disastrous HBO Max launch, the upcoming fire sale of gaming division, 250 store closings, and massive layoffs.
First from M*
"Advancing technology will swamp AT&T’s best businesses over the next decade. New wireless technologies will enable a host of firms to enter the business, commoditizing this service.
Ubiquitous, high-quality Internet access will allow content creators to easily reach audiences without the help of platforms like HBO.
Supporting declining businesses, like fixed-line phone service, creates a drag on profits that will only grow over time.
AT&T’s massive debt load and hefty dividend payout leave little financial flexibility. The dividend will get cut at the first sign of trouble."
At a near 7% yield, many assume T to be an excellent investment, however, a quick look at its performance tells another story. Over the eleven standard measuring periods used by M*, AT&T falls last in everyone compared to an indexed fund.