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AT&T - AI Stock Analysis

Analysis generated January 3, 2025

AT&T Inc. is a multinational conglomerate holding company headquartered in Dallas, Texas. It is considered the world's largest telecommunications company and the largest provider of mobile telephone services in the U.S. The company also offers broadband subscription television services through DirecTV. Established in 1983, AT&T has a long history and was originally part of the Bell Telephone Company. Over the years, AT&T has expanded its portfolio through acquisitions and partnerships to diversify its services, including the WarnerMedia acquisition, although this has recently been spun off into a separate entity.

Fundamental Analysis

Revenue for the last quarter was $30.2 billion. This is an increase of 1.4% compared to the quarter before it, signaling a modest growth. However, compared to the same quarter last year, there is a decrease of 0.45%, which may suggest stagnation or competitive pressures.

Net income for the last quarter was $174 million. This represents a decrease of 104.84% compared to the quarter before it, indicating significant financial issues. Moreover, compared to the same quarter last year, this also represents a 104.98% drop, underscoring deeper concerns.

EBITDA for the last quarter was $8.18 billion, a decrease of 31.34% from the previous quarter. However, compared to the same period last year, EBITDA increased by 28.37%, reflecting some positive aspects in operating performance year-over-year.

The current P/E ratio stands at 18.51, which is neither particularly high nor low, suggesting that the stock is reasonably valued in terms of earnings per share.

Technical Analysis

Today’s stock price is $22.76, reflecting a 4.13% decrease compared to a month ago, which might concern short-term investors. However, in the long-term, the stock has risen by 40.93% compared to a year ago, depicting a positive long-term trend. Currently, the trend is bearish.

The SMA10 (Simple Moving Average over 10 days) is $22.82, marginally lower than the previous SMA10 of $22.84. This suggests a potential downward trend in price movement.

The RSI (Relative Strength Index) is 35.1, indicating a neutral condition. RSI values between 30 and 70 typically indicate neither overselling nor overbuying pressure.

Alternative Data Analysis

Regarding job postings and employee sentiment, AT&T has 1,559 open positions, which is down by 11% in the last couple of months, signifying possible cost-cutting or margin improvement measures—a negative indicator for a growing company.

The business outlook among employees is low, with only 45% having a positive view, a concerning sign of possible internal unrest or dissatisfaction.

Customer acquisition metrics show that AT&T’s webpage receives about 106 million visitors monthly with stable traffic. The mobile apps attract 5,800 downloads daily, with no meaningful change recently. Customer engagement metrics suggest no significant changes in Instagram and Twitter followings, although the Twitter follower count has declined by 1%.

AltIndex's AI score for AT&T is 39, which is a sell signal. This score synthesizes fundamental, technical, and alternative data analyses to provide an overall outlook.

Conclusion and Recommendation

To sum up the analysis, while AT&T shows a modest year-over-year revenue growth and a recent rise in long-term stock price, concerns remain on several fronts. Lower net income and EBITDA quarter-over-quarter, bearish technical indicators, and weak employee sentiment are notable red flags. The lack of significant changes in customer acquisition and engagement also does not favor growth prospects.

Based on the data presented, a cautious approach is advisable for potential investors. Monitoring future earnings reports and any strategic company changes is crucial before making significant investment decisions.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.