AT (NYSE: T) claimed its divestments of DirecTV in 2021 and WarnerMedia in 2022 would herald a new beginning for its aging business. The sales did mark an end to the telecom giant's ill-advised attempt to become a media titan, and the newly streamlined company declared it would focus on growing its core wireless and wireline businesses.
But after merging WarnerMedia with Discovery to create Warner Bros. Discovery (NASDAQ: WBD) last year, AT's stock has underperformed the market by a wide margin. The two stocks started trading separately on April 11, 2022.
Since that fateful day, AT's stock price is down 22% as the S 500 stayed nearly flat. Its investors also received 0.24 shares of Waner Bros. Discovery for each share of AT they held, but the former has also plummeted more than 50% since its market debut. Let's compare the bear and bull cases to decide if AT is still a worthwhile investment.
Source Fool.com