AT&T Inc. (NYSE: T) shares have weakened more than 7% since the beginning of December and continue to trade near their lowest point since the global financial crisis, more than a decade ago.
Jeff McElfresh raised new concerns
AT&T Inc. provides telecommunication, media, and technology services worldwide. AT&T is s the second largest provider of mobile telephone services and the largest provider of fixed telephone services in the United States.
AT&T shares continue to trade near their lowest point since the global financial crisis after communications chief Jeff McElfresh raised new concerns about user growth in the wireless industry.
Over the last five financial quarters, AT&T has achieved its best subscriber results in a decade (almost 4 million postpaid phone net additions and 1.4 million fiber net adds).
Speaking at a Wells Fargo conference in the last week of November, Jeff McElfresh said that the outlook for 2022 and beyond would not be so good. Jeff McElfresh added:
There’s no doubt that the stimulus programs have put some extra cash in household budgets this year. In a three-player market with the integration between Sprint and T-Mobile, we suspect the activity level for postpaid in 2022 is probably going to subside.
On the other side, AT&T expects higher service revenues from the growing base, while CFO Pascal Desroches said last week that the industry is performing better than it ever has before, and there will be a lot of opportunity for AT&T.
The company is growing revenues, subscribers, and profits, and CFO Pascal Desroches expects this trend will continue in the upcoming quarters.
AT&T has a very good risk/reward ratio; the current dividend yield is above 9%, and investors in this
