AT&T (T)
Posted: Sun Jun 14, 2015 7:41 amnot vested
7 Blue-Chip Busts That Could Use a Spark: AT&T (T)
The former Ma Bell, AT&T (T), is suffering at the hands of its success, ironically.
As a major player in the U.S. mobile market, T stock is now getting squeezed by competition and a maturing marketplace.
According to statistics portal Statista.com, U.S. cell phone growth is expected to grow by a mere 8 million users by 2017.
That means everyone in the business is trying to steal everyone else’s customers. The problem for AT&T is that it’s one of the major infrastructure players and has to keep up with Verizon (VZ) on the coverage and 4G LTE front. That costs a lot of money. And when you’re not adding loads of new subscribers, the margins start looking anemic.
T’s acquisition of satellite TV provider DirecTV (DTV) may add some value, and certainly some cash flow. But it’s unclear if this diversification will hurt or help T stock in the long run.
Source: investor Place
7 Blue-Chip Busts That Could Use a Spark: AT&T (T)
The former Ma Bell, AT&T (T), is suffering at the hands of its success, ironically.
As a major player in the U.S. mobile market, T stock is now getting squeezed by competition and a maturing marketplace.
According to statistics portal Statista.com, U.S. cell phone growth is expected to grow by a mere 8 million users by 2017.
That means everyone in the business is trying to steal everyone else’s customers. The problem for AT&T is that it’s one of the major infrastructure players and has to keep up with Verizon (VZ) on the coverage and 4G LTE front. That costs a lot of money. And when you’re not adding loads of new subscribers, the margins start looking anemic.
T’s acquisition of satellite TV provider DirecTV (DTV) may add some value, and certainly some cash flow. But it’s unclear if this diversification will hurt or help T stock in the long run.
Source: investor Place