This Is Not Your Grandfather’s AT&T


This Is Not Your Grandfather’s AT&T


I have had several readers request that I do an article on AT&T (T). Since the company has just reported earnings, which have thus far received a strong and positive reaction from Wall Street, I thought now would be a good time.

Following their earnings report, an article published on July 25, 2017 at 4:17 PM EDT in Bloomberg Technology led off with this provocative title: “AT&T Shares Jump Most In 8 Years On Surprise Mobile Gains.”

Here is a short excerpt from the article, however, for those interested in investing in AT&T, I suggest they follow the above link and read the entire article:

“AT&T Inc. shares surged the most in more than eight years after the telecommunications giant posted a surprise wireless subscriber gain in the second quarter, showing it can fend for itself in a cutthroat price war.

Second-quarter earnings topped estimates, and wireless customers rose by 127,000, compared with analysts’ average projection for a loss of 22,713. An offer for unlimited wireless data, bundled with discounted streaming-TV service, helping AT&T bide its time while awaiting regulatory approval to transform into a media powerhouse through the $85.4 billion purchase of Time Warner Inc.

AT&T rose as much as 5.2 percent to $38.09, the biggest intraday gain since March 2009.”

However, what is currently happening to AT&T’s stock price is a short-term reaction - positive as it may be. Nevertheless, I believe the more important questions are is AT&T a good long-term investment, and perhaps more importantly, what kind of an investor is AT&T an appropriate option for? In order to effectively answer these questions, it’s important to recognize the specific investment opportunities that AT&T offers long-term. I will start off by suggesting a possible answer to the second question by restating comments I previously made on what type of an investor that I believe AT&T is appropriate for, and later I will address whether or not AT&T is a good long-term total return investment.

Disclosure: Long T.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation.


Dividend Growth Stocks