Latest news with #TimeWarner
Bloomberg
28-05-2025
- Business
- Bloomberg
YouTube Is Swallowing TV Whole, and It's Coming for the Sitcom
By For two decades, YouTube has tried to convince advertisers that it's the future of entertainment. The pitch has always been simple enough: 'Young people don't watch cable; they watch YouTube.' It doesn't exactly require a PowerPoint presentation. But YouTube has had problems making its case. The first is that the vast majority of videos on the site aren't filmed to Scorsese-like standards. 'The biggest knock against creator content is that it's low quality, s---, crap, slop, garbage,' Doug Shapiro, a former executive at Time Warner, wrote in December. That's sort of inconsequential, he argued, since most people aren't watching random YouTube slop—they're watching the most popular slop. Which leads to YouTube's second issue: The most watched channels haven't always been hospitable to advertisers.
Yahoo
25-05-2025
- Business
- Yahoo
Where Will AT&T Stock Be in 1 Year?
AT&T's stock price has risen as the company refocused on its core telecom business. The company has maintained a generous payout since slashing the dividend in 2022. Despite a modest valuation, investors will not necessarily consider its P/E ratio as inexpensive. 10 stocks we like better than AT&T › The 2020s did not start well for AT&T (NYSE: T) stock. In the 2010s, the company veered from the wireless-focused business models of its competitors and invested heavily in non-core businesses such as DirecTV satellite TV services and Time Warner entertainment. This was a costly mistake that ended with the company selling these enterprises at a massive loss and slashing its dividend after 35 straight years of increases. However, as it pivoted exclusively into a wireless and fiber focus, investors returned to AT&T, and the stock price has almost doubled since its lows in mid-2023. The question now is whether that growth can continue over the next year. Indeed, AT&T has become a more compelling investment since selling its non-core assets. As one of the three major telcos in the U.S., it maintains a strong position in a critical industry where Verizon Communications and T-Mobile US are its only competitors. Since spinning off non-core businesses, AT&T more closely resembles its competitors. About 70% of its revenue comes from its mobility business in the U.S. Just over one-fourth of its revenue comes from wireline enterprises, with a slight majority of those customers being other businesses. Just over 3% of its revenue comes from its operations in Latin America. Admittedly, the spinoffs did not change the fact that AT&T is a mature business, making it unlikely to interest growth-oriented investors. Still, income investors will like that its $1.11-per-share annual payout has remained stable since the 2022 dividend cut. Even with a rising stock price, the dividend yield is 4%, more than triple the S&P 500 average of 1.3%. Additionally, analysts forecast free cash flow of $16 billion, down from just under $18 billion in 2024. Still, since the dividend costs the company about $8.4 billion, AT&T will likely maintain this dividend and could eventually begin to resume payout hikes. As stated before, AT&T is no longer a growth business. However, its revenue for the first quarter of 2025 was just under $31 billion, a 2.5% yearly increase. Also, since revenue in 2024 fell 0.1%, the performance may have meant a slight recovery. Costs and expenses grew faster than revenue, but thanks to a $1.4 billion increase in the rise of equity from affiliates, net income attributable to AT&T was almost $4.4 billion, a 26% increase. Looking forward, AT&T expects steady growth, with revenue expected to rise by a low-single-digit percentage. It did not offer guidance on its profit increases, though consensus estimates point to an 8% pullback in profits before turning positive by 7% in 2026. Still, such growth did not stop the company from generating over 65% in total returns over the last year. Moreover, despite that increase, AT&T stock trades at a 17 P/E ratio compared to the S&P 500 average earnings multiple of 28. Objectively, that is not a high P/E ratio. Still, with profit struggles, it is unclear whether investors would perceive that multiple as inexpensive. That adds to the uncertainty surrounding AT&T stock in the near term. Over the next year, AT&T stock may struggle to beat the performance of the S&P 500. Admittedly, the gains over the last two years are impressive, and over time, its stock should continue moving higher. It may also be an excellent buy for income-oriented investors, as a refocus on telecom has meant that its free cash flows can easily cover the dividend and, possibly, payout hikes at a later time. However, AT&T remains a mature company that grows its revenue and profits slowly. That means it could struggle to draw growth investors, particularly with its comparatively high P/E ratio. The good news for its current shareholders is that a downturn in the near future is unlikely, making the stock a hold. Nonetheless, unless you're buying for income, it likely does not pay for investors to add shares at this time. Before you buy stock in AT&T, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AT&T wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Will Healy has no position in any of the stocks mentioned. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy. Where Will AT&T Stock Be in 1 Year? was originally published by The Motley Fool
Globe and Mail
25-05-2025
- Business
- Globe and Mail
Where Will AT&T Stock Be in 1 Year?
The 2020s did not start well for AT&T (NYSE: T) stock. In the 2010s, the company veered from the wireless-focused business models of its competitors and invested heavily in non-core businesses such as DirecTV satellite TV services and Time Warner entertainment. This was a costly mistake that ended with the company selling these enterprises at a massive loss and slashing its dividend after 35 straight years of increases. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » However, as it pivoted exclusively into a wireless and fiber focus, investors returned to AT&T, and the stock price has almost doubled since its lows in mid-2023. The question now is whether that growth can continue over the next year. The state of AT&T today Indeed, AT&T has become a more compelling investment since selling its non-core assets. As one of the three major telcos in the U.S., it maintains a strong position in a critical industry where Verizon Communications and T-Mobile US are its only competitors. Since spinning off non-core businesses, AT&T more closely resembles its competitors. About 70% of its revenue comes from its mobility business in the U.S. Just over one-fourth of its revenue comes from wireline enterprises, with a slight majority of those customers being other businesses. Just over 3% of its revenue comes from its operations in Latin America. Admittedly, the spinoffs did not change the fact that AT&T is a mature business, making it unlikely to interest growth-oriented investors. Still, income investors will like that its $1.11-per-share annual payout has remained stable since the 2022 dividend cut. Even with a rising stock price, the dividend yield is 4%, more than triple the S&P 500 average of 1.3%. Additionally, analysts forecast free cash flow of $16 billion, down from just under $18 billion in 2024. Still, since the dividend costs the company about $8.4 billion, AT&T will likely maintain this dividend and could eventually begin to resume payout hikes. AT&T's financials As stated before, AT&T is no longer a growth business. However, its revenue for the first quarter of 2025 was just under $31 billion, a 2.5% yearly increase. Also, since revenue in 2024 fell 0.1%, the performance may have meant a slight recovery. Costs and expenses grew faster than revenue, but thanks to a $1.4 billion increase in the rise of equity from affiliates, net income attributable to AT&T was almost $4.4 billion, a 26% increase. Looking forward, AT&T expects steady growth, with revenue expected to rise by a low-single-digit percentage. It did not offer guidance on its profit increases, though consensus estimates point to an 8% pullback in profits before turning positive by 7% in 2026. Still, such growth did not stop the company from generating over 65% in total returns over the last year. Moreover, despite that increase, AT&T stock trades at a 17 P/E ratio compared to the S&P 500 average earnings multiple of 28. Objectively, that is not a high P/E ratio. Still, with profit struggles, it is unclear whether investors would perceive that multiple as inexpensive. That adds to the uncertainty surrounding AT&T stock in the near term. AT&T stock in one year Over the next year, AT&T stock may struggle to beat the performance of the S&P 500. Admittedly, the gains over the last two years are impressive, and over time, its stock should continue moving higher. It may also be an excellent buy for income-oriented investors, as a refocus on telecom has meant that its free cash flows can easily cover the dividend and, possibly, payout hikes at a later time. However, AT&T remains a mature company that grows its revenue and profits slowly. That means it could struggle to draw growth investors, particularly with its comparatively high P/E ratio. The good news for its current shareholders is that a downturn in the near future is unlikely, making the stock a hold. Nonetheless, unless you're buying for income, it likely does not pay for investors to add shares at this time. Should you invest $1,000 in AT&T right now? Before you buy stock in AT&T, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AT&T wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025
Yahoo
17-05-2025
- Business
- Yahoo
Down 9%, Should You Buy the Dip on AT&T?
After a strong advance, AT&T's stock has pulled back over the past month. The telecom is still growing at a steady rate and pays a decent dividend. Its shares looks cheap right now, but its upside potential might be limited. 10 stocks we like better than AT&T › AT&T's (NYSE: T) stock hit a 52-week high of $29.03 per share on April 3. That represented a gain of more than 60% over the previous year. Investors appear to have embraced AT&T for three reasons: Its wireless business was growing at an impressive rate. Its high dividend became even more attractive as interest rates declined. It was insulated from the rising tariffs and trade wars. Today, however, AT&T's stock trades about 9% below that 52-week high. Should investors consider this slight pullback to be a good buying opportunity? Or could it sink even further over the next year? AT&T tried to become a pay-TV giant by acquiring DirecTV in 2015, Time Warner in 2018, and other smaller media assets. However, tough competition from Netflix and other streaming media platforms crushed its costly attempt to build a streaming media empire. As AT&T poured more cash into its media businesses, its core wireless and broadband businesses struggled to expand. In 2021 and 2022, AT&T finally divested DirecTV, Time Warner, and most of its media assets. By abandoning its dreams of building a media empire, AT&T freed up more cash to expand its 5G and fiber businesses as it reduced its debt. That streamlined business has consistently gained more postpaid wireless and fiber broadband subscribers over the past two years. Net Additional Subscribers 2023 2024 Q1 2025 Postpaid Phone Service 1.7 million 1.7 million 324,000 Fiber Broadband Service 1.1 million 1.0 million 261,000 Data source: AT&T. AT&T is also growing faster than Verizon Communications, which only grew its postpaid wireless subscribers by 449,000 in 2023 and 851,000 in 2024. But both telcos are growing more slowly than T-Mobile US, which added 3.1 million postpaid subscribers in both 2023 and 2024. AT&T continues to gain new subscribers at a healthy clip, but its free cash flow (FCF) declined over the past two years. That drop was caused by its higher investments in its 5G and fiber networks, as well as more aggressive promotions to keep pace with Verizon and T-Mobile. Metric 2023 2024 Q1 2025 Free Cash Flow $16.8 billion $15.3 billion* $3.1 billion Dividend Payments $8.1 billion $8.2 billion $2.0 billion Data source: AT&T. *Excluding the sale of its remaining stake in DirecTV. AT&T also notably cut its dividend after it spun off Time Warner and merged it with Discovery to create Warner Bros. Discovery in 2022. It subsequently kept its annual payout at $1.11 per share but still generates plenty of FCF to cover its dividends. However, AT&T's forward dividend yield of 4.1% is still much lower than Verizon's forward yield of 6.3%. It's also lower than the 10-Year Treasury's yield of 4.5%. That lower yield and lack of annual dividend hikes might make AT&T a bit less appealing to income-oriented investors. For 2025, AT&T expects to generate "at least" $16 billion in FCF (excluding the sale of its remaining 70% stake in DirecTV) as its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increases more than 3%. Analysts expect its adjusted EBITDA to rise 3% to $46 billion. With an enterprise value of $303 billion, the company looks cheap at just 19x this year's FCF and 7x its adjusted EBITDA. By comparison, Verizon trades at 16x and 6x this year's FCF and adjusted EBITDA, respectively. While AT&T looks cheap and pays a decent yield, dividend-driven investors might gravitate toward Verizon's higher yield, consistent dividend hikes, and lower valuations. AT&T's downside potential might be limited -- but it won't set any new record highs anytime soon. It still seems like a safe-haven buy at these levels, but investors should temper their near-term expectations. Before you buy stock in AT&T, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AT&T wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $620,719!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,511!* Now, it's worth noting Stock Advisor's total average return is 959% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Leo Sun has positions in Verizon Communications. The Motley Fool has positions in and recommends Netflix. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy. Down 9%, Should You Buy the Dip on AT&T? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
16-05-2025
- Business
- Globe and Mail
Down 9%, Should You Buy the Dip on AT&T?
AT&T 's (NYSE: T) stock hit a 52-week high of $29.03 per share on April 3. That represented a gain of more than 60% over the previous year. Investors appear to have embraced AT&T for three reasons: Its wireless business was growing at an impressive rate. Its high dividend became even more attractive as interest rates declined. It was insulated from the rising tariffs and trade wars. Today, however, AT&T's stock trades about 9% below that 52-week high. Should investors consider this slight pullback to be a good buying opportunity? Or could it sink even further over the next year? Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » How did AT&T revive its business? AT&T tried to become a pay-TV giant by acquiring DirecTV in 2015, Time Warner in 2018, and other smaller media assets. However, tough competition from Netflix and other streaming media platforms crushed its costly attempt to build a streaming media empire. As AT&T poured more cash into its media businesses, its core wireless and broadband businesses struggled to expand. In 2021 and 2022, AT&T finally divested DirecTV, Time Warner, and most of its media assets. By abandoning its dreams of building a media empire, AT&T freed up more cash to expand its 5G and fiber businesses as it reduced its debt. That streamlined business has consistently gained more postpaid wireless and fiber broadband subscribers over the past two years. Net Additional Subscribers 2023 2024 Q1 2025 Postpaid Phone Service 1.7 million 1.7 million 324,000 Fiber Broadband Service 1.1 million 1.0 million 261,000 Data source: AT&T. AT&T is also growing faster than Verizon Communications, which only grew its postpaid wireless subscribers by 449,000 in 2023 and 851,000 in 2024. But both telcos are growing more slowly than T-Mobile US, which added 3.1 million postpaid subscribers in both 2023 and 2024. How safe is AT&T's dividend? AT&T continues to gain new subscribers at a healthy clip, but its free cash flow (FCF) declined over the past two years. That drop was caused by its higher investments in its 5G and fiber networks, as well as more aggressive promotions to keep pace with Verizon and T-Mobile. Metric 2023 2024 Q1 2025 Free Cash Flow $16.8 billion $15.3 billion* $3.1 billion Dividend Payments $8.1 billion $8.2 billion $2.0 billion Data source: AT&T. *Excluding the sale of its remaining stake in DirecTV. AT&T also notably cut its dividend after it spun off Time Warner and merged it with Discovery to create Warner Bros. Discovery in 2022. It subsequently kept its annual payout at $1.11 per share but still generates plenty of FCF to cover its dividends. However, AT&T's forward dividend yield of 4.1% is still much lower than Verizon's forward yield of 6.3%. It's also lower than the 10-Year Treasury's yield of 4.5%. That lower yield and lack of annual dividend hikes might make AT&T a bit less appealing to income-oriented investors. What's next for AT&T? For 2025, AT&T expects to generate "at least" $16 billion in FCF (excluding the sale of its remaining 70% stake in DirecTV) as its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increases more than 3%. Analysts expect its adjusted EBITDA to rise 3% to $46 billion. With an enterprise value of $303 billion, the company looks cheap at just 19x this year's FCF and 7x its adjusted EBITDA. By comparison, Verizon trades at 16x and 6x this year's FCF and adjusted EBITDA, respectively. While AT&T looks cheap and pays a decent yield, dividend-driven investors might gravitate toward Verizon's higher yield, consistent dividend hikes, and lower valuations. AT&T's downside potential might be limited -- but it won't set any new record highs anytime soon. It still seems like a safe-haven buy at these levels, but investors should temper their near-term expectations. Should you invest $1,000 in AT&T right now? Before you buy stock in AT&T, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AT&T wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $620,719!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,511!* Now, it's worth noting Stock Advisor 's total average return is959% — a market-crushing outperformance compared to170%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 12, 2025
