Summary
- HBO again claims the top spot at the Emmys.
- The media company hasn't seen any benefits to the business over the last year.
- AT&T faces a real threat to a very profitable media business as competition undercuts prices.
- The stock is destined to stall at $40 without the peaceful retiring of the current CEO under pressure from Elliott Management.
While HBO again grabbed top honors at the Emmys, AT&T (T) has failed to parlay the success into revenue growth in the media division while the DTC video streaming markets soar and competition looms. The wireless and media conglomerate has failed due to a business hard to manage as outlined by Elliott Management.
Image Source: Reuters
Award Leader
HBO took home the top honor in this year's Emmy race after a tie last year with Netflix (NFLX). The company took home 34 trophies due in large part to the success of "Game of Thrones". The series has been a big contributor to HBO Emmy nominations and wins since 2011. The series won 12 Emmys last year and 59 total prizes.
Source: CNBC
Netflix ended in a close second with 27 awards and Amazon (AMZN) Prime won 15 awards. The streaming services remain big threats to the perceived leadership of HBO.
The concern for HBO and AT&T is that the limited series "Chernobyl" won 10 awards and the combination with "Game of Thrones" accounted for 22 trophies out of the 34. With the later series concluding an eight-year run, HBO ends 2019 with limited momentum just as the video streaming wars heat up with the launch of Disney+ (NYSE:DIS) and Apple TV+ in a little over a month. Both of the later services already have more consumer brand awareness than the new HBO Max and a prime reason my investment thesis doesn't advocate holding the stock hoping the Elliott Management plan to play out.
