- Despite the DirecTV and Warner Media disposals, 78% of AT&T stock's current value is in the telecoms businesses being retained.
- Telecoms is a commodity business, and AT&T Mobility shows the signs of a bad one, soon to be worse as cable operators expand there.
- The Consumer Wireless business has seen falling EBITDA even during COVID-19; the Business Wireline business is in structural decline.
- Higher CapEx after the spin-offs will not help much, as these will only close in H2 2022, and cable operators have already invested.
- At $29.23, AT&T stock has a post-deal Dividend Yield of 4.0%; adjusted FCF Yield is 12.3%, but outweighed by qualitative concerns. Avoid.
For further details see:
Where Will AT&T Stock Be In 5 Years? The Risks Are Too High