#8 - AT&T (NYSE:T)
AT&T (T) Finally, we get to the companies that will be putting 5G technology in the consumer’s hands. For me, aside from Apple which is an entity unto itself, comes down to AT&T (NYSE:T) and Verizon (NYSE:VZ). At this point, I give the nod to AT&T.
This is because what some analysts see as a weakness for the stock, I view as a strength. With the acquisition of content from Time-Warner, the company will be entering the streaming wars. Critics will say that with DirecTV the company is entrenched in a dying industry. And with Time-Warner they are arriving late to the game with a streaming product that will not have the content consumers want.
But the one thing both of these acquisitions give AT&T is a degree of stickiness. A consumer can bundle wireless service, DirecTV, and (in select markets) home internet. Now they add the ability to deliver streaming content. This is a tactic already being used by Disney (NYSE:DIS) and Apple. Inertia is a funny thing and AT&T seems to be building a moat that will make customers think twice about switching.
About AT&T
AT&T Inc provides telecommunications and technology services worldwide. The company operates through two segments, Communications and Latin America. The Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, carrying cases/protective covers, and wireless chargers through its own company-owned stores, agents, and third-party retail stores.
Read More - Current Price
- $22.75
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 14 Buy Ratings, 7 Hold Ratings, 1 Sell Ratings.
- Consensus Price Target
- $25.53 (12.2% Upside)
According to the research firm Gartner, 5G wireless infrastructure will increase to $4.2 billion in 2020. So even if the next generation of phones doesn’t arrive on schedule, the 5G train has left the station. And that means there’s plenty of opportunity for investors both in 2020 and beyond.
If you take nothing else from this presentation, it should be this. 5G is not a bubble. It’s not a trend. It’s an inevitable evolution. To paraphrase a cliché, it’s become too important to fail. I’ve seen “5G” pop up on my phone when I’ve traveled to a number of cities.
This means the infrastructure is already here, if only on a limited basis. And that infrastructure is moving from the outside in – as in the palm of your hand.
Many of these companies will be delivering (or have already delivered) earnings. When analysts get a chance to digest those numbers, the big money may start to make these stock prices look less attractive. And when that happens, it may be too late. That’s why it’s important that you act now.
And remember, as a MarketBeat member, you’ll be able to get instant alerts on news that affects the stocks you’re either investing in or have on your watch list.
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