Topic: How To Invest

Wall Street Stock Forecaster Hotline – Thursday, April 14, 2022

Article Excerpt

AT&T INC., $19.54, New York symbol T, is still a buy for long-term gains. The company is the biggest wireless carrier in the U.S. It also offers traditional phone services. AT&T has now completed its plan to merge its Warner Bros. media operations with Discovery Inc. (Nasdaq symbol DISCA). Under the terms of the deal, AT&T investors received 0.241917 shares of this new firm (called Warner Bros. Discovery, see below) as a tax-free distribution for each T share they own. As a group, they now own 71% Warner Bros. Discovery, while Discovery investors hold the remaining 29%. As part of the merger, AT&T also received $40.4 billion in cash. It will use that to pay down its long-term debt of $152.8 billion (as of December 31, 2021). Now that AT&T has completed the spinoff, it will focus on expanding its ultrafast 5G wireless and fibre-optic Internet networks. The company expects these upgraded systems will reach 75% of its current service areas by 2025. AT&T will spend…