3 Red Flags for AT&T's Future
Over the past two years, AT (NYSE: T) tried to reset its business by selling its non-core assets and spinning off DirecTV and WarnerMedia. It claimed that a big reversal of its media expansion plans would enable it to focus on upgrading its 5G and fiber networks to compete more effectively against its telecom rivals.
The last major step in that plan was the creation of Warner Bros. Discovery (NASDAQ: WBD) through a merger between WarnerMedia and Discovery. When that transaction finally closed on April 8, 2022, AT's investors received 0.241917 shares of WBD for each share of AT they held. Yet both stocks have slumped since they started trading separately on April 11 -- AT's stock has declined 25% while WBD's stock has fallen 47%.
Image source: AT
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