AT&T stock dives after CFO shares ‘tough decisions’ over blackouts

John Parker - September 16, 2019

The shareholders of AT&T have faced a rugged week.

The stock of the company is taking a dive after John Stephens, AT&T CFO shared about the price increase effects as well loss of nearly 350,000 of its subscribers at the Bank of America Merrill Lynch Media, Communications and Entertainment Conference. Prolonged blackouts of Nexstar and CBS stations both are also a reason behind the firm’s lower revenue and down stock price by nearly 15 percent on Friday.

AT&T now needs to enhance its CRM (customer relationship management) if it wishes to succeed ahead with its 2-revenue wireless subscriptions model, which includes advertising and satellite television, said Porter Bibb from MediaTech Capital Partners.

According to Bibb, Netflix has conquered CRM as well as offers an apt model to AT&T as well as other firms joining the streaming battle.

On the other hand, Elliot Group’s activist investors slammed the AT&T management and company strategies by submitting a letter containing suggestions to improve shareholder value.

Bibb defended AT&T and said that Elliot Management should be concentrating on other existing wireless providers, such as Verizon as it has no second or center revenue stream as well as comprises of just dumb pipes. It will soon become less profitable with time as new rivals such as Sprint/T-Mobile start to take away the wireless subscribers of Verizon, he added.

John Parker is a finance writer and journalist based in the Outer Banks, NC.

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