AT&T (NYSE: T) is back to being a telecom company after the spinoff of Warner Media put an end to its disastrous run as an entertainment conglomerate. While getting out of the media business was the right move for the company, its stock has been punished this year as the economic winds shifted. AT&T was forced to slash its full-year outlook for free cash flow a few months ago as customers started delaying payments.

The poor performance of AT&T stock can partly be attributed to the bridges the company has burned with investors. AT&T transformed from a telecom company into a complicated conglomerate with its spree of media acquisitions, piling debt onto the balance sheet and destroying shareholder value. It's no surprise that investors don't trust the company to make good decisions.

That trust deficit has led to a stock price that looks shockingly cheap given AT&T's position as one of the major wireless providers in the United States. CEO John Stankey recognizes that regaining investor confidence will take time, telling CNBC that a string of solid results will help to entice investors to give the stock another shot. With AT&T's third-quarter results, the company certainly delivered.

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Source Fool.com