|Bid||30.23 x 900|
|Ask||30.24 x 3200|
|Day's range||29.70 - 30.30|
|52-week range||28.85 - 39.33|
|Beta (3Y monthly)||0.46|
|PE ratio (TTM)||5.84|
|Earnings date||30 Jan 2019|
|Forward dividend & yield||2.00 (6.63%)|
|1y target est||34.40|
As 2018 winds down, it’s off to the streaming races for 2019. Disney and AT&T will launch new streaming services, while Netflix will try to fend off the competition from new and old media giants.
Programming costs are significant cost considerations for media companies. Charter Communications’ (CHTR) programming costs have been trending upward over the past few quarters, rising ~2.9% YoY (year-over-year) in the third quarter. Charter’s programming costs rose to $2.8 billion in the third quarter from $2.7 billion in the third quarter of 2017.
Both T-Mobile (TMUS) and Sprint (S) have high hopes that their proposed merger will pass the regulatory hurdle. The companies have argued that they need this merger to speed up 5G network development and provide meaningful competition to Verizon (VZ) and AT&T (T).
On December 10, Verizon (VZ) had a trailing-12-month EV-to-EBITDA (enterprise value-to-EBITDA) multiple of ~7.6x. Its peers T-Mobile (TMUS), AT&T (T), and Sprint (S) had trailing-12-month EV-to-EBITDA multiples of ~7.5x, ~7.4x, and ~4.6x, respectively. Verizon expects its EV-to-EBITDA in 2018 to be ~7.4x, while in 2019, it expects this multiple to be ~7.3x.
The board of directors of AT&T Inc.* (NYSE: T) has approved a 2.0% increase in the company’s quarterly dividend. AT&T’s quarterly dividend will increase from $0.50 to $0.51 per share. The dividend is an important way we provide value to our shareholders, and I’m proud that we are able to continue our history of annual increases,” said Randall Stephenson, chairman and CEO, AT&T Inc.
Amazon (AMZN) stock has fallen over 16% in the last three months as part of the larger market pullback driven by the likes of Apple (AAPL) and other giants. The company's days of 40% top-line growth might also be over. But let's dive into Amazon's overall business picture and outlook to see if investors should buy AMZN stock heading into 2019.
Google (GOOGL) has signed on Walt Disney (DIS) as an ad-technology customer in a multiyear deal, with Disney set to use Google’s Ad Manager platform to manage and deliver digital ads across its various platforms. Details of the deal, such as exactly how long it is expected to last and what Disney has agreed to pay for using Google’s ad technology, have not been disclosed. However, the deal is a huge win for Google in the race for ad-tech revenue.
Verizon’s (VZ) closing price on December 10 was $58.27. Based on that price, Verizon has a market cap of $240.8 billion—the highest among all major US mobile operators. The stock is trading 26.4% above its 52-week low of $46.09 per share and 5.4% below its 52-week high of $61.58 per share.
According to Wall Street analysts’ consensus, Verizon stock has a median target price of $59.00. Of the 31 analysts who follow AT&T (T), 45% have given it “buys,” 48% have given it “holds,” and 7% have given it “sells.” On average, analysts have a median price target of $34.00 on the stock. Of the 23 analysts who follow T-Mobile (TMUS), 87% have given it “buys” while 13% have given it “holds.” No analysts have given it “sells.” On average, analysts have a median price target of $79.00 on the stock.
On December 3, JPMorgan Chase upgraded AT&T (T) stock from a “neutral” to an “overweight” with a 12-month price target of $38. This price target represents a potential upside of ~26.1% from its December 7 closing price of $30.14.