Thread regarding AT&T layoffs

If Q2 earnings disappoint, and the future outlook (specifically Free Cash Flow) is bleak, why would you own T stock? It has very known risk - regardless of Beta and a 7% dividend (which could still be cut). You could be in a CD risk-free for 4 - 4.5%, or Value ETF that has better yield than T “potential”. Heck pay down high interest credit or loans and those savings right there are better than locking up the same amount in a risky 7% dividend T stock. Plus, taxable accounts could take advantage of losses with tax harvesting to offset the big gains from tech and S&P 500 YTD.

Balance sheet might look a little better later this year with pension liability declines due to annuity sell and recent surplus employees taking discounted lump-sums due to higher segment rates.

The only reason I could see being long on T stock is if the continued sell-off of assets or divisions occurs and has a premium (big IF). But who is paying that considering the debt load, fiber reach isn’t that deep, 5G is 3rd in a three horse race, and there are still tons of staff employees and CWA that most suitors don’t want to deal with.

Run Forest Run$$$$$$$

Look at the numbers. AT&T resellers cause consistent loss of revenue employees earn. It's a landslip to ruins if AT&T doesn't put a stop to outsourcing & Reseller's.

This question has been asked for nearly 10 years and there was always a segment that defended the stock due to dividend. Over this same time period, the value has decreased significantly at the same time the dividend was cut. Pretty much defines "value trap".

All of this doesn't look good for the future, and this is before considering the accumulated debt during this same time period.

$T< $12 by 9/1/23
Bet.

I have gotten burned so much by buying with the thought, “it can’t go any lower than this…”

DRAIN definitely!

Let me save you the click and read: "value trap, as it's been for the last decade."
More accurate would be value drain.