Shares of AT&T have fallen to a three decade low amid a sharp decline in traditional cable television subscribers and the use of landlines.
On Monday, shares for the telecommunications company are targeting their weakest finish since March 24, 1993, when the stock ended the session at $13.92. Year-to-date, shares have fallen over 26%, after plummeting roughly 34% the last 12 months.
In an interview with FOX Business, David Russell, VP of market intelligence at the TradeStation Group, said, "Investors were already sour on AT&T’s long-term prospects because of cord cutting, and this lead-cable story could be the straw that broke the camel’s back."
AST SPACEMOBILE COMPLETES FIRST SPACE-BASED VOICE CALL USING SMARTPHONES
"Telecoms carry significant debt loads from their years of building networks," he added. "Not only are those assets less valuable. Some of them could even turn into liabilities, according to these reports. AT&T was already struggling with high costs, and now these old landlines could make things even worse."
"Things have gone from bad to worse for Ma Bell," Russell finished.
PHONE COMPANY ENDS 411 SERVICES FOR SOME CUSTOMERS
Shares have now fallen 68.79% from an all-time closing high of $44.70 on July 16, 1999, while slipping roughly 32.93% from the 52-week closing high of $20.80 on July 19, 2022. On Monday, AT&T stock is the second worst performer on the S&P 500.
Earlier in the year, AT&T ended its 411 services for some customers, while over the final quarter of 2022, the company agreed to pay a $6.25 million penalty to settle a Securities and Exchange Commission lawsuit accusing the phone company of selectively leaking financial information to Wall Street analysts.
WHY SOME BOSSES HATE REMOTE WORK AND WHAT CAN BE DONE ABOUT COMMON GRIPES
In October, AT&T agreed to pay a $23 million fine while its former president was indicted on federal charges over a scheme involving former Illinois House Speaker Michael Madigan, who was arrested on racketeering and bribery charges earlier in the year.
