According to a report by the Wall Street Journal over the weekend, John Stankey, Chief Executive Officer of Warner Media, LLC at AT&T, intends to renovate cable news network CNN’s digital operation, since it “isnt reaching its potential and requires more investment in product development and data analytics.”
AT&T shares closed lower for a second consecutive trading session in New York on Monday. It has also been the steepest daily loss since January 30th. The stock went down 2.73% ($0.84) to $29.98, after touching an intraday low at $29.67, or a price level not seen since February 14th ($29.55).
Shares of AT&T Inc have risen 5.05% so far in 2019 compared with an 11.41% gain for the benchmark index, S&P 500 (SPX).
In 2018, AT&T Inc’s stock went down 26.59%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.
The report emerges at a time when AT&T shuffles the executive ranks within its recently acquired Warner Media entertainment empire.
“At a time when we must shift our investment focus to develop more content for specific and demanding audiences on emerging platforms, we can’t sustain a model where we invest one dollar more than necessary in the administrative aspects of running our business,” John Stankey said in a memo sent to employees on Monday, cited by Reuters.
“Put simply, our priority is to direct resources to product development and innovation,” he added.
According to CNN Money, the 24 analysts, offering 12-month forecasts regarding AT&T Inc’s stock price, have a median target of $34.00, with a high estimate of $43.00 and a low estimate of $22.00. The median estimate represents a 13.41% upside compared to the closing price of $29.98 on March 4th.
The same media also reported that 14 out of 31 surveyed investment analysts had rated AT&T Inc’s stock as “Hold”, while 12 – as “Buy”. On the other hand, 2 analysts had recommended selling the stock.
Weekly Pivot Levels
By using the traditional method of calculation, the weekly levels of importance for AT&T Inc (T) are presented as follows:
Central Pivot Point – $30.96
R1 – $31.29
R2 – $31.75
R3 – $32.08
R4 – $32.40
S1 – $30.50
S2 – $30.17
S3 – $29.71
S4 – $29.24