AT&T’s CEO John Stankey says his company is best off out of the media business. From the standpoint of its choppy contribution to earnings and its debt load, he is right. However, that leaves AT&T to rely on the highly competitive broadband business. It is among the most competitive sectors in the United States, and AT&T has yet to prove it can be on the winning side.
AT&T’s shares are off 20% in the past year. By contrast, the shares of Verizon are off 7%. AT&T probably suffers from the belief that its management is among the worst among America’s large companies, which is another reason for pessimism.
The wireless broadband business is brutal. The introduction of 5G has caused a rush to add and retain customers. AT&T faces not just Verizon. Rival T-Mobile’s shares have risen 3% in the past year, which is a sign that investors believe it is in the best shape among the three competitors.
Among stock analysts, AT&T’s median share price forecast over the next year is $28. At just over $24 apiece on last look, its shares are forecast to barely budge. That means even professional investors look at AT&T’s future as grim.
24/7 Wall St.Take Charge of Your Retirement In Just A Few Minutes (Sponsor)
Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance—and SmartAsset’s made it easier than ever for you to connect with a vetted financial advisor.
Here’s how it works:
- Answer a Few Simple Questions. Tell us a bit about your goals and preferences—it only takes a few minutes!
- Get Matched with Vetted Advisors Our smart tool matches you with up to three pre-screened, vetted advisors who serve your area and are held to a fiduciary standard to act in your best interests. Click here to begin
- Choose Your Fit Review their profiles, schedule an introductory call (or meet in person), and select the advisor who feel is right for you.
Why wait? Start building the retirement you’ve always dreamed of. Click here to get started today!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.