Will AT&T Stock Go Back To Its Pre-Covid Level?

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Gulf

Will AT&T Stock Go Back To Its Pre-Covid Level?

We believe at the current price of $28 per share, AT&T stock (NYSE: T) looks a bit undervalued. The stock is down 28% from the level of $39 seen in the beginning of 2020. It traded at $38 in February 2020 (just before the coronavirus pandemic) and it is currently still 26% below that level, as well. AT&T stock has managed to gain only 6% from its March 2020 low of $28. The stock has significantly underperformed the market over recent months because of a lackluster launch of its streaming offering - HBO Max, along with the acquisition of Warner Media not adding much to the top line in 2020 due to the pandemic severely hitting the movie and advertising revenues for media giants. Also, AT&T continues to face intense competition from Verizon VZ and T-Mobile in the 5G technology expansion, alongside Dish Network DISH who announced a partnership with Amazon's AMZN AWS for 5G. While HBO Max is expected to gradually increase its subscriber base, it will face intense competition from bigger rivals like Netflix NFLX and Disney DIS . Thus, we believe that AT&T stock is unlikely to go back to the pre-pandemic level any time soon, due…