We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Over the past six months, the stock has contracted 10.6% while the Zacks classified Wireless National industry has declined 11.7 %.
AT&T operates in a highly competitive and saturated wireless U.S. market, where spectrum crunch has become a major issue. Most of the carriers are finding it increasingly difficult to manage mobile data traffic, which is growing by leaps and bounds.
The company announced a range of freebies and cash credits to bring in customers and lower the churn rate. However, this might strain margins going ahead. AT&T has been actively trying to attract customers with lucrative discounts in order to maintain a competitive edge over smaller carriers like T-Mobile US Inc. (TMUS - Free Report) and Sprint Corporation. (S - Free Report) These carriers have been utilizing similar strategies to lure customers.
Employees of AT&T’s wireline service in California and Nevada, represented by the Communications Workers of America (CWA) union, have recently disapproved of a tentative labor agreement. Under the terms of the proposed four-year contract, the company would provide a series of pay raises, improvements in job security and retirement benefits, continued affordable healthcare, and other improvements for its West and DirecTV West workers in California and Nevada.
This was the first proposed contract for DirecTV workers since AT&T’s acquisition of the pay-TV operator. The company’s representatives are yet to find a common ground with the CWA leadership regarding the contract. This is certainly a setback for AT&T.
Also, the company’s wireline division is struggling with persistent loss in access lines due to competitive pressure from voice-over-Internet protocol (VoIP) service providers and aggressive triple-play (voice, data and video) offerings by cable companies. These are weighing on the company’s revenues and margins. Moreover, AT&T’s quest for faster growth will increase subscriber acquisition cost in both consumer and SMB (Small and Medium Business) businesses putting pressure on wireline margins.
AT&T operates in a highly competitive market with players like Verizon Communications Inc. (VZ - Free Report) , T-Mobile and Sprint Corp. Moreover, loss in access lines, operating expenses, and marketing costs associated with attractive discounts, regulatory norms and union issues are posing as near-term risks for the company’s growth.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
4 Reasons Why Investors Should Get Rid of AT&T (T) Stock
On Jul 11, 2017, U.S. telecom behemoth, AT&T Inc. (T - Free Report) , was downgraded to Zacks Rank #4 (Sell) from Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Over the past six months, the stock has contracted 10.6% while the Zacks classified Wireless National industry has declined 11.7 %.
AT&T operates in a highly competitive and saturated wireless U.S. market, where spectrum crunch has become a major issue. Most of the carriers are finding it increasingly difficult to manage mobile data traffic, which is growing by leaps and bounds.
The company announced a range of freebies and cash credits to bring in customers and lower the churn rate. However, this might strain margins going ahead. AT&T has been actively trying to attract customers with lucrative discounts in order to maintain a competitive edge over smaller carriers like T-Mobile US Inc. (TMUS - Free Report) and Sprint Corporation. (S - Free Report) These carriers have been utilizing similar strategies to lure customers.
Employees of AT&T’s wireline service in California and Nevada, represented by the Communications Workers of America (CWA) union, have recently disapproved of a tentative labor agreement. Under the terms of the proposed four-year contract, the company would provide a series of pay raises, improvements in job security and retirement benefits, continued affordable healthcare, and other improvements for its West and DirecTV West workers in California and Nevada.
This was the first proposed contract for DirecTV workers since AT&T’s acquisition of the pay-TV operator. The company’s representatives are yet to find a common ground with the CWA leadership regarding the contract. This is certainly a setback for AT&T.
Also, the company’s wireline division is struggling with persistent loss in access lines due to competitive pressure from voice-over-Internet protocol (VoIP) service providers and aggressive triple-play (voice, data and video) offerings by cable companies. These are weighing on the company’s revenues and margins. Moreover, AT&T’s quest for faster growth will increase subscriber acquisition cost in both consumer and SMB (Small and Medium Business) businesses putting pressure on wireline margins.
AT&T operates in a highly competitive market with players like Verizon Communications Inc. (VZ - Free Report) , T-Mobile and Sprint Corp. Moreover, loss in access lines, operating expenses, and marketing costs associated with attractive discounts, regulatory norms and union issues are posing as near-term risks for the company’s growth.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>