AT&T stock plunges 11% after company slashes guidance for current year free cash flows

August 15, 2022

Categories: Market PriceTags: , , , Views: 20

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AT&T’s stock ($NYSE:T) plunged 11% after the company announced that it was slashing its guidance for current year free cash flows. This was the worst intra-day decline for the stock in almost two decades. The decision to slash guidance overshadowed the underlying business’ resilience in the face of a slowing consumer end-market. AT&T released its second quarter results in mid-July, and the stock has yet to recover. In addition to external market challenges, the first half of the year has also been full of changes for AT&T’s internal operations. These changes could affect AT&T’s market and earnings in the long term.

Market Reaction

AT&T stock opened at $18.1 on Friday and closed at $18.3, up by 1.3% from previous closing price of 18.0.

VI Analysis

The company’s fundamentals reflect its long-term potential, and its status as a dividend-paying company makes it less risky than some of its peers. AT&T has an intermediate health score of 6/10 with regard to its cashflows and debt, which suggests that it should be able to safely ride out any crisis without the risk of bankruptcy. However, the company’s growth prospects are relatively weak compared to its other key metrics. For more details please visit Star Chart.


The stock price recovered slightly the following day, rising 1.3%. Despite the recent volatility, AT&T remains a large and stable company with a diversified portfolio of businesses. The telecommunications giant offers investors a compelling mix of growth and income potential. AT&T’s stock price has been under pressure in recent months as the company has struggled to grow its wireless business. Competition from rivals such as Verizon and Sprint has been intensifying, putting pressure on AT&T’s margins. Despite these challenges, AT&T is still a very attractive investment. The company has a strong balance sheet and generates a significant amount of cash flow. If you are looking for a large and stable company with a diversified business mix, AT&T is worth considering. The stock may be volatile in the short-term, but the long-term potential remains very attractive.

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