AT&T in Europe

AT&T (American Telephone & Telegraph) in planning to start business in Europe. AT&T (NYSE:T) Inc is an American multinational telecommunications corporation, headquartered at Whitacre Tower in downtown Dallas, Texas. The company is founded by Alexander Graham Bell in 1876.


AT&T is the second largest provider of mobile telephony and the largest provider of fixed telephony in the United States. They also provides broadband subscription television services. The company is the third largest company in Texas, but the largest non-oil company.


ExxonMobil and ConocoPhillips is the two that is bigger than AT&T and as you know they are in the oil industry. As of May 2013, AT&T is the 21st largest company in the world by market value. It is the 13th largest non-oil company.


As of 2014, AT&T is also the 20th largest mobile telecom operator in the world. They have over 107,9 million mobile customers. As you may know, this is a big company, planning to expand in Europe.


The stock price reached a top in Jul, 16, 1999, trading at 59,188. Now, 15 years later, the stock price is trading at 31,93. The stock has declined for a long time now, and while the S&P 500 hits new all-time highs, AT&T is near 52-week lows. Down -9,2% in 2014.


Some investors say that T will not make you rich as an investor overnight, but it can be a great stock in a longer term. T offers a fair valuation. They have a solid dividend yield and a mild earnings growth. They have two unites: wireless and wire line.


Some speculators say that this company is near the bottom as the P/E ratio reached single digits and dividend yield passed 5,75%. P/E ratio is 9,61 and the downside should be limited, but we have to keep an eye on the earnings.


The British telecom giant Vodafone (VOD) reported disappointing results in the third quarter ended December 31, 2013. It was worse than investors expected. It seems like Vodafone don`t have the ability to grow revenue in Europe, but the stock is doing it better than AT&T.


AT&T announced that the company will not make an offer for Vodafone, but they are looking for a large acquisition in Europe because they experience the same as Vodafone does in Europe; limited growth in the United States. The reason why AT&T is careful in acquiring Vodafone is their poor performance in Europe.


They are all selling the same products; SMS, MMS, phone calls and online access. You can`t say you have a better SMS than your competitors. They`re all the same, which means it all comes down to one thing: price, and that is good for the customers.


Some of the operators are just selling online access and gives you SMS and MMS and all your phone calls for free. You pay only one amount, no matter how much you call or send SMS. But that amount is much bigger than online operators like Skype and WhatsApp.


Skype is for free and WhatsApp costs 1 dollar after 12 months. If you go for those free solutions, you still need the wireless company and that is where they will earn money in the future: Online business.



Reports today:


08:30 AM ET Motor Vehicle Sales
08:30 AM ET Personal Income and Outlays
08:58 AM ET PMI Manufacturing Index
10:00 AM ET ISM Mfg Index
10:00:00 Constructiono Spending


Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Leave a comment

Filed under Stocks

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.