Summary
- AT&T The stock price dropped, but the outlook looks the same.
- It might be the strongest stock in the streaming wars.
- 5G and HBO Max will push the stock higher.
- AT&T (T) is expected to perform enviously well next year, and the market estimates it will be performing quite well in the following years.
Investing in the company presents an optimal risk-reward proposition with low downside and outstanding upside potential, and as for its price, it is somewhat undervalued with high dividends.
5G and HBO Max will mark the future of the company, and if it goes the way the company is planning, the stock will shine in any portfolio. While the price has dropped considerably in the last few months, its long term prospects are almost intact.
5G & HBO Max
Two catalysts will push AT&T higher 5G and HBO Max. The introduction of 5G will motivate users to change their phones and contracts to get faster and better internet. With a higher internet speed, the company will be able to increase the prices and probably the margin of the contract. While the implementation of 5G will require capital investments, the additional revenue should offset the capital expenditure. As the video below shows, capital expenditure will need to increase, and the rollout of 5G will take time, but the increase in demand for 5G will increase the revenue of the company.
