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AT&T’s $7.6B DirecTV Stake Sale: What Next?AT&T (NYSE: NYSE:T ) recently announced a monumental deal, selling its remaining 70% stake in satellite TV provider DirecTV to private equity firm TPG for $7.6 billion. This move marks a decisive step for AT&T (NYSE: NYSE:T ), allowing the telecom giant to refocus its efforts on its core operations in wireless and fiber connectivity while continuing to stabilize and strengthen its balance sheet. Background and Financial Context AT&T’s acquisition of DirecTV in 2015 for $49 billion was met with high hopes but ultimately faced challenges as the television market shifted toward streaming services. Since then, DirecTV has seen a steady decline in distributions, with payments dropping from $2.65 billion in 2022 to $2.04 billion in 2023. In 2021, AT&T (NYSE: NYSE:T ) formed a joint venture with TPG, selling a 30% stake in DirecTV for $1.8 billion in cash. Under this agreement, AT&T agreed not to sell its remaining stake for three years. With that period expiring in July 2024, the telecom company is now selling its entire 70% interest in DirecTV to TPG in a deal that is expected to close by the second half of 2025. This sale comes at a time when AT&T is seeking to consolidate its focus on wireless and fiber networks, areas where the company sees the most growth potential. The deal is also aimed at reducing debt and improving AT&T’s financial stability, which has been a key concern among investors. AT&T will receive an initial payment of $2 billion in 2025, with additional payments through 2029. Fundamental Outlook: Refocusing for Growth With the divestiture of DirecTV, AT&T (NYSE: NYSE:T ) is sharpening its focus on its 5G wireless and fiber connectivity businesses, which are expected to be the primary growth drivers in the years ahead. The sale also aligns with AT&T’s long-term strategy to simplify its business model and allocate resources to higher-margin operations. Despite the challenges in its satellite TV division, AT&T remains one of the largest telecom players in the U.S., boasting significant market share in both 5G and fiber. By freeing up capital and reducing operational distractions, the company can better invest in next-gen technologies like 5G and fiber-to-the-home, both crucial to AT&T’s future competitiveness. The company's balance sheet will benefit from the additional $7.6 billion in cash inflows, allowing AT&T to deleverage and improve its financial health. AT&T’s management has signaled confidence in maintaining financial discipline while seeking new growth opportunities in the rapidly evolving telecommunications landscape. Technical Outlook: What the Charts Say On the technical side, (NYSE: NYSE:T ) stock has shown resilience, currently trading at a bullish RSI of 66.82, indicating that it is not overbought or oversold. This positioning presents a healthy technical outlook, suggesting the stock has room for further upward movement. The stock is trading above its key 50, 100, and 200-day moving averages, further supporting a bullish sentiment. While the recent news provided a slight boost to the stock, with shares marginally up by 0.11% in premarket trading, caution is still warranted. The RSI hovering around 66 points to a potentially bullish scenario, but investors should remain mindful that any negative macroeconomic developments could exert pressure on the stock price. However, the positive momentum could see (NYSE: NYSE:T ) reaching its resistance point around $24 if broader market conditions remain favorable. AT&T stock (NYSE: NYSE:T ) saw a slight dip of 0.11% in aftermarket trading, suggesting that the market is still digesting the impact of the DirecTV stake sale. If the stock manages to hold above its 50-day moving average in the coming sessions, a breakout toward the resistance level could solidify the bullish trend. Conclusion: AT&T’s decision to sell its stake in DirecTV is a pivotal move, one that repositions the company to focus on its strengths in 5G and fiber connectivity. While DirecTV was a significant part of AT&T’s portfolio for nearly a decade, the satellite TV business no longer aligns with the company’s growth trajectory. AT&T (NYSE: NYSE:T ) stock is in a promising position, with positive momentum supported by solid moving averages and a healthy RSI. However, investors should remain cautious and watch for any potential pullbacks, particularly as the stock approaches its resistance point. Fundamentally, the sale allows AT&T to simplify its business, improve its balance sheet, and double down on its most profitable segments. As the telecom landscape continues to evolve, this strategic shift could help AT&T (NYSE: NYSE:T ) capture more of the market in a fast-growing 5G environment, making it an interesting play for both long-term investors and those looking for near-term opportunities.
NYSE:TLong
by DEXWireNews
$T - Recession? Food, Water, Shelter... Cell Phones - TA & FADid some TA & FA today on a long-term & dividend play I like. AT&T ($T). Are we in a recession, is a recession coming, will things get worse before they get better? People need cell phones. Food, water, shelter, then what? Cell phones! If you are looking for a safe play to start DCA'ing, IMO this is about as good as it gets for a safe, long-term opportunity given the current market. Let me know what ya think, cheers!
NYSE:TLong
by ObiWanJacoby93
1
AT&T: No network here!AT&T Short Term - We look to Sell at 20.41 (stop at 20.92) Posted a Double Top formation. This is negative for sentiment and the downtrend has potential to return. There is scope for mild buying at the open but gains should be limited. Resistance is located at 20.50 and should cap gains to this area. Preferred trade is to sell into rallies. Our profit targets will be 18.85 and 18.00 Resistance: 20.50 / 21.50 / 22.50 Support: 18.80 / 18.00 / 17.00 Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Signal Centre’) . Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Signal Centre.
NYSE:TShort
by VantageMarkets
Breaking down AT&T’s stock after WarnerMedia spin-offNearly four years after fighting a hard battle to acquire WarnerMedia and accelerating its foray into the media business, AT&T (NYSE:T) has gone back to its roots to focus on being a telecommunications company. On April 8, AT&T completed the spin-off of 100% of its interest in WarnerMedia, which owns subscription service HBO Max and film production company Warner Bros., and merged it with Discovery Inc. (NASDAQ:DISCA) to form a mega-streaming platform to better take on giants like Netflix (NASDAQ:NFLX), Apple’s (NASDAQ:AAPL) Apple TV, and Disney+ and Hulu by Walt Disney (NYSE:DIS). Foray into media services AT&T completed its $85.4 billion acquisition of WarnerMedia, formerly Time Warner, in 2018 about two years after first disclosing the move. The company had hoped to provide seamless media content through its direct-to-customer distribution. It subsequently rebranded Time Warner into what is now known as WarnerMedia. WarnerMedia owns Netflix rival HBO Max, an over-the-top subscription service launched in 2020 with a ton of exclusive and original contents, as well as HBO classics. However, in the years that AT&T acquired WarnerMedia, HBO Max still lagged Netflix, which continues to dominate the global streaming platform. According to tech news platform CNET, Netflix remains the biggest streaming service provider in 2022, with Disney+, Hulu, Amazon.com’s (NASDAQ:AMZN) Prime Video, and HBO Max trailing behind. The merger of WarnerMedia with Discovery to form Warner Bros. Discovery (NASDAQ:WBD) is expected to up both platforms' game against Netflix, Amazon, and Disney. Since announcing the closing of the merger, AT&T’s stock has jumped 7% as of Thursday, April 14, but down nearly 14% on a year-on-year basis. Its rival, Verizon (NYSE:VZ) is also trading almost 8% down from a year ago. Bullish on AT&T? Although AT&T’s stock remains below year-ago levels, many analysts remain bullish on the telco’s stock, citing its renewed focus on its core telco operations. Bank of America analyst David Barden recently reaffirmed his buy rating on AT&T with a $25 price target, saying its shares are undervalued. Barden also noted that the spin-off of WarnerMedia will help ease the complexity of AT&T’s operations. "With the deal now closed, the dividend reset, and the investor base stabilizing, we believe the stage is set for investors to begin focusing on AT&T’s improving fundamentals," Barden reportedly wrote in a note to clients. JP Morgan analyst Philip Cusick also issued an upbeat outlook on AT&T’s stock, setting a price target of $22, urging investors to capture the discount on the company’s share price. Focus on core telco business Analysts now expect AT&T to double down on its wireless business and expand its fiber optic reach amid intense competition against rivals like Verizon in the broadband space. In the fourth quarter of 2021, AT&T’s revenue fell to $41 billion from $45.7 billion a year earlier on the back of lower business wireline revenue, which was slightly offset by higher mobility and consumer wireline turnover, and strong revenue from WarnerMedia. The absence of WarnerMedia’s results will likely weigh on AT&T’s financials in the near term, but its renewed focus on being a telecom pure-play company will make it more competitive against Verizon T-Mobile US (NASDAQ:TMUS) and other smaller players as it expands and improves its 5G wireless networks. "Going forward, we aim to be America's best broadband provider powered by 5G and fiber, and defined by greater ubiquity, reliability, capacity, and speed,” AT&T CFO John Stankey said in a recent earnings call. Stankey added that the company will focus on growing its subscribers and accelerating the pace of its 5G deployment.
NYSE:T
by BlackBull_Markets
T-AT&T- THE CYCLE OF BULL TO BEAR OVER THE DECADES! SHORT!Find out the latest details on AT&T NYSE:T . Have the bulls completely lost their momentum? In this video I go through the macro view on AT&T and discuss their debt and cash flows and there future. Is this a good stock to buy and hold for your portfolio? Find out here! Disclaimer I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this TA,(Technical Analysis) are for informational and educational purposes only and do not constitute financial, investment, trading, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using or reading this technical analysis or site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this analysis, or post.
NYSE:TShort
by CryptoBuzzAnalyst
AT&T | Fundamental Analysis | LONG SETUP AT&T stock is disappointing most experts and shareholders: telecom giant's evolution into the satellite TV and media markets, as well as lagging development in its wireless business, has driven its stock price to drop more than 40 percent over the past five years. But there have been a few good aspects of the past year. AT&T slowly decreased its leverage by selling 30% of DirecTV, getting rid of WarnerMedia via a merger with Discovery, and selling other non-core assets to get fresh cash. The company's stock also rose briefly in January as increased interest rates made investors tend the securities again. Between Jan. 1 and Jan. 18, AT&T's stock price increased 11%, while the S&P 500 fell 4%. However, AT&T subsequently squandered almost all of those gains as several worrying aspects emerged on the horizon. At the beginning of the year, AT&T investors were unsure whether the company was going to spin off or split off WarnerMedia after the merger with Discovery. In case of the spin-off, AT&T would distribute about 1.7 billion shares of Warner Bros. Discovery. Each investor would have received 0.24 shares of the new media company for each AT&T share they owned. In a company split-off, AT&T investors would have been allowed to directly exchange all or part of their AT&T stock for Warner Bros. Discovery. Such an exchange would likely result in about 20 percent of AT&T's outstanding shares going out of circulation and would be tantamount to a massive share buyback for the remaining AT&T investors. But to persuade AT&T's investors to accept such an exchange, the company would probably have to offer its shares to Warner Bros. Discovery at a discount to their base value. Many AT&T investors preferred the split-off since it was more adaptable, reduced the number of AT&T shares outstanding, and allowed them to get Warner Bros. Discovery at a better price. Last week, AT&T CEO John Stankey assured that the company intended to spin off its stake in Warner Bros. Discovery, saying it is "simple, efficient and results in AT&T shareholders owning stock in both companies." The decision, already hinted at during AT&T's Q4 conference call on Jan. 26, weighed on the company's stock. AT&T also announced a reduction in its annual dividend from $2.08 to $1.11 per share to reflect the sale of WarnerMedia. The announcement was not that shocking, since AT&T had previously told investors that it would cut its cash dividend payout ratio after the company split, but the reduction in the projected yield from 8.5% to 4.5% probably worried some income investors. The dividend cut may also prompt some investors to take a closer look at AT&T's competitor, Verizon, which has a higher projected yield of 4.8%, controls most of the U.S. wireless market, and is not involved in confusing sales and splits. At the end of 2021, the U.S. Federal Aviation Administration (FAA) said that 5G C-band networks, which are mostly used by AT&T and Verizon, could interfere with aircraft navigation systems. In early January, AT&T and Verizon voluntarily shut down their 5G transmitters near airports and deferred their 5G network expansion assignments in nearby areas. On Jan. 28, the FAA, AT&T, and Verizon reached an agreement to include more 5G towers near airports, but only in particular locations that have been properly mapped. These setbacks will likely be transient, but they could give T-Mobile -- which uses a mid-band (600 MHz to 2.5 GHz) spectrum instead of a high-band (3.7 GHz to 4.2 GHz) C-band spectrum -- an advantage over its two competitors. T-Mobile's use of the mid-band spectrum, which penetrates buildings and hard objects more easily than the high-band spectrum, has already provided 5G networks with much wider coverage than AT&T and Verizon. If additional concerns about the security of C-band networks emerge in the future, AT&T and Verizon may find it difficult to catch up with T-Mobile in the 5G race. If you already own AT&T, you should probably just hold your stock as the low valuation, high dividend yield, and forthcoming Warner Bros. Discovery should limit the downside potential. But investors who don't already own AT&T probably shouldn't buy stock in this battered company just yet. In this volatile and relentless market, there are plenty of other top blue-chip stocks to buy right now.
NYSE:TLong
by FOREXN1
Is AT&T (T) a good buy.... almost thereEveryone is talking about AT&T or T as they call it being a good buy.... well it's almost there for us. Was very close in December but 21 or below is the price I will take AT&T at. If you were to look at the P/E for this stock and say VZ they are pretty close though the problem becomes for us the amount of shares that will be outstanding after the sale of the Streaming division 7.2B wayy too many stocks outstanding for us. Compared with VZ 4.2B. I would consider and have alerts set for anything below 21.96 and then possibly take a look as they consolidate and focus on their core business of phone service.
NYSE:T
by swimmax
AT&T | Fundamental Analysis | Short Setup | MUST READ ! 🔔AT&T used to be regarded as a well-built blue-chip stock for income-oriented investors. But within the past several years, the telecommunications and media titan has lost about 40% of its market value, and its stock is now near a 12-year low. AT&T's tumble can be explained by three big missteps. First, it bought DirecTV in 2015 for $49 billion in a failed effort to extend its pay-TV business. Then, it bought Time Warner for $85 billion in 2018 in a desperate struggle to build a streaming media ecosystem. Both deals resulted in the company biting off far more than it could chew, and its long-term debt burden soared. Finally, AT&T has been so caught up in its media expansion that its wireless segment has been idle. Last year, T-Mobile outdid AT&T as the second-largest wireless carrier in the United States through its merger with Sprint, and its 5G network has more coverage than Verizon and AT&T. These setbacks have been frustrating, but the stock now trades at just seven times its projected earnings, with a 9.1 percent yield. Should investors think of buying AT&T as an undervalued dividend asset? Over the past year, AT&T has taken some steps to convert its most critical choices. In May, it stated its intention to separate WarnerMedia (most of Time Warner's media assets) and merge it with Discovery to create an independent company by mid-2022. AT&T's current investors will get stocks in this new company. In August, AT&T separated DirecTV into a new stand-alone company. AT&T kept 70% of the stock in this new company, and investment firm TPG bought the remaining 30%. AT&T also sold several smaller companies, including the Latin American satellite division of Vrio, mobile game publisher Playdemic, tabloid news site TMZ, and anime platform Crunchyroll, as well as some real estate to further streamline the business. The company thinks this approach will free up more resources to expand its 5G network as well as decrease the long-term debt accumulated from deals with DirecTV and Time Warner. The company says its net debt to adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio will drop from a "peak" of 3.1 in early 2021 to 2.5 or lower by the end of 2023. After the WarnerMedia separation, AT&T expects its annual revenue to grow at a low single-digit compound annual growth rate (CAGR) from 2022 to 2024, and its adjusted EBITDA and adjusted earnings per share (EPS) to grow at an average single-digit CAGR. In other words, the growth rate of the "new" AT&T may look more stable and analogous to that of Verizon. AT&T is eventually taking some moves in the correct direction, but it still encounters challenges. WarnerMedia's merger with Discovery will create a larger media business, but the combined company may still struggle to keep up with major players like Netflix and Disney in the competitive streaming market. So the "new" Discovery may not be much better than the old one, which has already lost 14 percent of its value over the past five years. AT&T will also cut its dividend after it separates WarnerMedia. The company anticipates the "new" AT&T to bring at least $20 billion in free cash flow (FCF) on its own and then pay 40% to 43% of that amount in dividends. Meanwhile, WarnerMedia probably won't pay a dividend at all, as it would make more sense to keep that money for investments in streaming. When AT&T set this cash dividend payout ratio earlier this year, its stock price assumed a future yield of 4-5%. However, AT&T stock has afterwards fallen and increased its yield to 7%-8%. Some investors may believe that AT&T will meet its obligations and maintain this high yield after the spin-off. But if AT&T's stock price stays at $20, the company may decrease its payout ratio and high yield to preserve more cash. AT&T needs cash because its wireless business still faces challenges shortly. At an up-to-date Wells Fargo conference, Jeff McElfresh, head of communications, warned that AT&T's wireless growth could "go flat" in 2022 after incentive checks and new 5G devices boosted sales in 2021. That negative outlook, along with stiff competition from T-Mobile and Verizon, could make steady growth difficult for the new AT&T. AT&T is trying to heal its wounds, but the market does not give much credence to its recovery efforts. Analysts still expect the company's earnings to decline both this year and next year (not including the upcoming separation), and earnings growth will remain anemic. Investors should understand that AT&T stock is cheap for obvious reasons, and they should not buy it until there are some positive results. Traders, if you like this idea or have your own opinion about it, please write your own in the comment box . We will be glad for this. Feel free to request any pair/instrument analysis or ask any questions in the comment section below. Have a Good Day Trading !
NYSE:TShort
by FOREXN1
2
ATT AT&T: Is It Finally Time To Go Up?Hello friends, today I am completing a technical analysis on the 1M linear scale chart for AT&T Inc. ( ATT ), traded on the NYSE. #CryptoPickk notes the following: 1) AT&T price has been falling year over year since the all time high at around $60 in 1999. 2) The price has been moving inside of a triangle pattern with a lower trendline which has supported the price since 1994. The price is currently testing this trendline. 3) The RSI (relative strength index) is about to reach the oversold area on the monthly scale. This is the second time it has done so in its entire history. 4) The Volume has picked up significantly compared to the prior years. 5) If the price has a monthly close above the bottom trendline and stays above it, there may be a good chance the price will start moving upwards. 6) Most recently AT&T price fell fast due to growth and dividend issues. Management is working to address these issues. 7) Lastly, the Fibonacci Retracement levels are noted in case the price keeps falling. What are your opinions on this? If you enjoy my ideas, feel free to like it and drop in a comment. I love reading your comments below. Disclosure: This is just my opinion and not any type of financial advice. I enjoy charting and discussing technical analysis. Don't trade based on my advice. Do your own research! #cryptopickk
NYSE:TLong
by MillionaireEconomics
4