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.
AT&T has been facing intense competition from peers, compelling it to lower the price of its services. This will dent AT&T's margins going ahead. Additionally, the entry of cable MSOs like Comcast Corporation (CMCSA - Free Report) and Charter Communications Inc. (CHTR - Free Report) in the wireless industry will intensify competition.
In a saturated wireless market, spectrum crunch has become a major issue in the U.S. telecom industry. Most of the carriers are finding it increasingly difficult to manage mobile data traffic, which is growing by leaps and bounds. AT&T is no exception. The situation has become even more acute with the growing popularity of iPhone and Android smartphones as well as rising online mobile video streaming, cloud computing and video conferencing services. However, AT&T is actively participating in the ongoing 600 Mhz spectrum auction conducted by the Federal Communications Commission. The new spectrum may solve problems relating to spectrum crunch.
AT&T hasn’t been proactive on the Internet advertising front as well. Moreover, AT&T’s failed bid to acquire Yahoo! Inc. means it has to look for alternate ways to integrate its DIRECTV service with this mobile advertising platform. Being a dormant player in the mobile advertisement space, AT&T is overlooking a major revenue generation opportunity by not venturing into the high growth mobile advertising space.
Also, the company’s wireline division is grappling with persistent losses in access lines as a result of competitive pressure from voice-over-Internet protocol (VoIP) service providers and aggressive triple-play (voice, data, video) offerings by cable companies. These are weighing on the company’s revenues and margins.
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AT&T (T) Downgraded to Sell, Intense Competition a Reason
On Oct 3, wireless carrier AT&T Inc. (T - Free Report) was downgraded to a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AT&T has been facing intense competition from peers, compelling it to lower the price of its services. This will dent AT&T's margins going ahead. Additionally, the entry of cable MSOs like Comcast Corporation (CMCSA - Free Report) and Charter Communications Inc. (CHTR - Free Report) in the wireless industry will intensify competition.
In a saturated wireless market, spectrum crunch has become a major issue in the U.S. telecom industry. Most of the carriers are finding it increasingly difficult to manage mobile data traffic, which is growing by leaps and bounds. AT&T is no exception. The situation has become even more acute with the growing popularity of iPhone and Android smartphones as well as rising online mobile video streaming, cloud computing and video conferencing services. However, AT&T is actively participating in the ongoing 600 Mhz spectrum auction conducted by the Federal Communications Commission. The new spectrum may solve problems relating to spectrum crunch.
AT&T hasn’t been proactive on the Internet advertising front as well. Moreover, AT&T’s failed bid to acquire Yahoo! Inc. means it has to look for alternate ways to integrate its DIRECTV service with this mobile advertising platform. Being a dormant player in the mobile advertisement space, AT&T is overlooking a major revenue generation opportunity by not venturing into the high growth mobile advertising space.
Also, the company’s wireline division is grappling with persistent losses in access lines as a result of competitive pressure from voice-over-Internet protocol (VoIP) service providers and aggressive triple-play (voice, data, video) offerings by cable companies. These are weighing on the company’s revenues and margins.
AT&T INC Price
AT&T INC Price | AT&T INC Quote
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>