Inez Meraz 
- AT&T shares witness pressure.
- The current stock price has a dividend yield beyond 7%.
- AT&T continues to draw clients.
AT&T has seen its stock weaken to $14.67 from $21.39 since 01 July 2022. While publishing this news, the shares stood at around $14.71. Meanwhile, the company attracts clients, and the current stock prices have a dividend yield beyond 7%. The firm’s shares could be a lucrative option for long-term market players.
AT&T Still Capturing Customers
AT&T Inc. offers media, technology, and telecommunication services globally. Meanwhile, the company remains different from pre-pandemic periods, and AT&T has seen significant changes under executive John Stankey, who assumed the CEO position in 2020.
The primary change occurred in April this year following the merger between AT&T’s WarnerMedia and cable firm Discovery to build Warner Bros. The latter will allow AT&T to concentrate on offering wireless networks, internet, cell phone services, landline communications, and digital television to its around 200 million clients globally.
Though the firm’s business stays steady, AT&T’s share price has deteriorated since WarnerMedia’s spinoff. For now, the share has dropped over 30%from the company’s post-spinoff peak. Moreover, it trades at only 5.8 times 2022’s EPS predictions.
AT&T maintains a stable position within the market. Moreover, the company continues to capture clients – post-paid mobile subscribers. AT&T hit 813,000 post-paid mobile net additions in Q2 2022, representing the highest 2nd-quarter over a decade.
Also, beware that the company’s 2022 post-paid mobile net additions of 1.5M via the 1st and 2nd quarters outperformed 2022’s 1.4 million. Extending this trend might mean surpassing 2021’s record-printing 3.2 million post-paid mobile new adds – a figure higher than the past ten years combined.
AT&T used to follow Verizon Communication in the core wireless sector. However, AT&T outshined, currently leading in the United States with its staggering 44% market share v Verizon’s 31%. The firm continues to focus on fiber-optic & 5G network expansion, planning to cover over 200 million clients come 2023.
Technical Analysis
AT&T’s share has lost over 30% after hitting 2022’s highest mark at 21.53 on 26 May. Moreover, it remained primed for more declines. The stock’s support is $14, whereas $17 represents the initial resistance mark. Price declines beneath $14 would present a sell sign, opening the gates toward $13. Nevertheless, an uptick past $17 will confirm $18 as the next target.
