T will rebound on key support level, target 39 USD
AT&T added 300,000 subscribers to its DirecTV service, but at the same time, the company lost 390,000 subscribers for its other TV offerings. That means it lost 90,000 subscribers on a net basis.
The market reacted very negatively to the news, sending AT&T's shares below $36, which means the shares were down 9% during the last week.
The fact that AT&T is losing subscribers isn't a positive at all, obviously, but I don't think the 90,000 subscribers lost justifies such a negative share price reaction, due to two reasons.
First, the company has been losing subscribers for a while now, and when we take a closer look, we see that the decline rate has slowed down a lot:
Q3'17: Total - 90,000, Traditional - 390,000, Now 300,000
Q2'17: Total - 199,000, Traditional - 351,000, Now 152,000
Q1'17: Total - 233,000, Traditional - 233,000, Now 72,000
Q4'16: Total - 240,000, Traditional - 27,000, Now 267,000
The decline rate has dropped from almost a quarter million one year ago to less than 100,000 a quarter now, with the net total getting closer to zero every quarter.
AT&T's video offerings make up roughly 20% of its total revenues ($36 billion annually out of $162 billion), and the company has about 25 million subscribers - that number thus dropped by 0.4% during the most recent quarter.
AT&T added 300,000 subscribers to its DirecTV service, but at the same time, the company lost 390,000 subscribers for its other TV offerings. That means it lost 90,000 subscribers on a net basis.
The market reacted very negatively to the news, sending AT&T's shares below $36, which means the shares were down 9% during the last week.
The fact that AT&T is losing subscribers isn't a positive at all, obviously, but I don't think the 90,000 subscribers lost justifies such a negative share price reaction, due to two reasons.
First, the company has been losing subscribers for a while now, and when we take a closer look, we see that the decline rate has slowed down a lot:
Q3'17: Total - 90,000, Traditional - 390,000, Now 300,000
Q2'17: Total - 199,000, Traditional - 351,000, Now 152,000
Q1'17: Total - 233,000, Traditional - 233,000, Now 72,000
Q4'16: Total - 240,000, Traditional - 27,000, Now 267,000
The decline rate has dropped from almost a quarter million one year ago to less than 100,000 a quarter now, with the net total getting closer to zero every quarter.
AT&T's video offerings make up roughly 20% of its total revenues ($36 billion annually out of $162 billion), and the company has about 25 million subscribers - that number thus dropped by 0.4% during the most recent quarter.