AT&T: You Were Warned

The stock trades down at $33.50 and at yearly lows. The question now is whether AT&T has taken enough of a hit considering the bundling of crucial services following the DirecTV merger aren't apparently working.

The Q3 results were a big shock considering the wireless and video giant missed on both EPS and revenue estimates. More importantly, the company saw revenues plunge $1.2 billion and the only saving grace was that operating expenses declined by a nearly equal amount to produce a similar EPS total of last year at $0.74.

As the previous article highlighted, a primary area of weakness is the video business where cord cutters are at least shifting to the DirecTV Now service. Either way, the point of the DirecTV deal was to add pay-TV service to wireless consumers that used competitor offerings. Instead, AT&T lost 89,000 video subscribers last quarter and saw nearly 300,000 shift to the lower priced OTT service.

Source: seekingalpha