Core Viewpoint - AT&T Inc. has shown strong stock performance, gaining 53.6% over the past year, outperforming its peers in the telecommunications industry, although it still lags behind T-Mobile US, Inc. [1] Group 1: Business Model and Strategy - AT&T's customer-centric business model is expected to benefit from increased mid-band spectrum deployment and fiber densification, enhancing broadband connectivity for both enterprise and consumer markets [2] - The company is committed to modernizing its 5G wireless network using Open RAN technology, aiming to cover over 300 million people with mid-band 5G spectrum by the end of 2026 [5] - AT&T's edge computing services, particularly through its Multi-access Edge Compute (MEC) solution, are designed to provide low-latency, high-bandwidth applications, enhancing data processing capabilities [6] Group 2: Infrastructure and Connectivity - Continuous investments in network infrastructure, including 5G and fiber networks, position AT&T for long-term growth and improved service access across the nation [4] - By 2029, AT&T plans to reach over 50 million locations with fiber, which includes 45 million through organic deployments and over 5 million through Gigapower [5] - The partnership with Google Cloud aims to enhance customer experiences by providing end-to-end solutions that leverage edge computing capabilities [7] Group 3: Financial Performance and Challenges - Despite growth in wireless services, AT&T faces challenges from declining legacy services and competitive pressures, particularly in its wireline division [8] - Earnings estimates for 2025 and 2026 have been revised down by 7% each, indicating bearish sentiments regarding the stock's future performance [10] - The competitive and saturated U.S. wireless market, along with spectrum management issues, poses significant challenges to AT&T's profitability [8][14]

Group 1: Stock Market Corrections and Dividend Opportunities - Stock market corrections, defined as a decline of 10% or more from recent highs, present opportunities for dividend-seeking investors as falling stock prices lead to rising dividend yields [1] - The recent market correction has prompted increased purchases of dividend stocks, including Blackstone, Starbucks, and Verizon, which are viewed as attractive investments at this time [2] Group 2: Blackstone - Blackstone's stock has decreased nearly 30% from its recent peak, resulting in a dividend yield of 2.8%, significantly higher than the S&P 500's yield of 1.3% [3] - Unlike typical dividend stocks, Blackstone does not pay a fixed quarterly dividend; instead, it returns a significant portion of its distributable income through dividends and share repurchases, with a generally upward trend in payouts over the past 15 years [4] - The global alternatives market is projected to grow from $17 trillion at the end of 2023 to $30 trillion by 2030, which is expected to benefit Blackstone's alternative investment franchises [5] Group 3: Starbucks - Starbucks' stock has declined about 15% from its recent high, increasing its dividend yield to 2.5%, with a history of 14 consecutive years of dividend growth at a compound annual growth rate of 20% [8] - The company has over 40,000 stores globally and plans to continue expanding, albeit at a reduced pace compared to initial targets, which should support ongoing dividend increases [9][10] Group 4: Verizon - Verizon's stock has fallen approximately 6% from its recent peak, leading to a dividend yield of 6.2%, supported by a substantial free cash flow of $19.8 billion after capital expenditures, which comfortably covered its $11.2 billion in dividends [11] - The company is pursuing a $20 billion acquisition of Frontier Communications to enhance its fiber network, alongside significant investments in fiber and 5G, which are expected to bolster cash flow and support future dividend increases [12]

Core Viewpoint - T-Mobile is the only telecom stock currently held by Berkshire Hathaway, and it has outperformed its competitors, AT&T and Verizon, in terms of market gains over the past five years [2][11]. Company Performance - T-Mobile achieved 6.1 million postpaid net customer additions in 2024, leading to $81 billion in revenue, a 4% increase from the previous year [7]. - The company reduced operating expenses by over 1%, resulting in a significant boost in net income, with adjusted free cash flow reaching $17 billion, a 25% year-over-year growth [8]. - T-Mobile forecasts between 5.5 million and 6 million postpaid net customer additions for 2025, with expected net cash from operating activities between $26.8 billion and $27.5 billion, indicating a 24% increase at the midpoint [9]. Competitive Advantages - T-Mobile has a competitive edge as it has only operated as a wireless carrier since its inception in 1994, avoiding legacy costs associated with landline businesses [4]. - The acquisition of Sprint provided T-Mobile with critical wireless spectra, enhancing its service quality and allowing it to rank first in overall network experience for three consecutive years [6]. Financial Metrics - T-Mobile's annual dividend payout is $3.52 per share, yielding approximately 1.3%, which is close to the S&P 500's dividend returns of about 1.35% [3]. - The company's P/E ratio stands at 27, which, while higher than its peers, has decreased from previous levels, making it potentially attractive to new investors [10]. Investment Rationale - Buffett's investment in T-Mobile aligns with his history of successful stock picking, as it is the best performer among the three major telecom stocks [11]. - T-Mobile's improved service quality and financial performance, including significant free cash flow growth, suggest it is a stock worth considering for investors [12].

Core Insights - Telecom giants AT&T and Verizon are not traditional leaders in the AI revolution, but their connectivity services are essential for the data-intensive AI ecosystem [1] - Both companies are leveraging their 5G and fiber optic networks to meet the increasing demand for edge computing, resulting in stock price increases of 19% for AT&T and 13% for Verizon year to date [2] AT&T Overview - AT&T has seen a significant stock market recovery, with shares up 58% over the past year, attributed to a focus on core telecom strengths and exiting media ventures [4] - For the year ending December 31, 2024, AT&T's mobility segment revenue increased by 3.3%, with consumer broadband revenue rising by 7.2% due to fiber network expansion [5] - AI integration is contributing to AT&T's success, enhancing automation and capturing demand for middle mile infrastructure [6] - AT&T projects further growth for 2025, with a dividend yield of 4.1% and a potential dividend hike, alongside a new $10 billion share buyback program [7][8] Verizon Overview - Verizon, while experiencing a recent rally, has advantages such as larger total revenue and stronger free cash flow for 2024, making it a potentially better investment [9] - Verizon shares trade at a forward P/E ratio of around 10, offering better value compared to AT&T's 13, along with a higher dividend yield of 5.8% [10] - Verizon has a more defined AI strategy with its Verizon AI Connect solution and partnerships with tech leaders like Alphabet, Meta Platforms, and Nvidia [11][12] Investment Recommendation - Both AT&T and Verizon are positioned to benefit from long-term telecommunications opportunities, but Verizon is viewed as the better investment choice for 2025 due to its current valuation and growth potential [13][14]

Core Insights - Verizon Business has launched a new cybersecurity solution called Trusted Connection, designed to enhance security across the entire digital pathway from connected devices to cloud-hosted applications [2][4] - Trusted Connection is particularly beneficial for larger midsize businesses and enterprises that require improved security without the resources to manage it themselves [3][4] Product Features - Trusted Connection is a Zero Trust Network Access (ZTNA) service that secures devices, networks, and cloud-hosted applications by constantly verifying user access [6] - The solution integrates networking and security services into a single offering, allowing for easy management through a centralized portal [6][7] - It provides secure connectivity along encrypted paths from any device to digital resources, covering various environments such as SaaS apps and multi-cloud setups [7] Security Context - According to the 2024 Verizon Data Breach Investigations Report, 77% of basic web application attacks and 31% of all breaches in the past decade involved stolen credentials, highlighting the need for solutions like Trusted Connection [8] - Trusted Connection aims to mitigate the risks associated with stolen credentials by enforcing ZTNA and multi-factor authentication [8] Company Overview - Verizon Communications Inc. generated revenues of $134.8 billion in 2024 and serves nearly all of the Fortune 500 companies [10] - The company is headquartered in New York City and focuses on delivering mobility, reliable network connectivity, and security to its customers [10]

Core Viewpoint - Verizon's stock experienced a significant decline due to cautious guidance regarding subscriber growth, which is expected to be pressured in the near term [1][2]. Group 1: Stock Performance - Verizon's stock price fell by 6.6% in a single trading session, with a peak decline of 8.4% earlier in the day [1]. - Despite the recent pullback, Verizon's stock is still up 8% for the year 2025 [3]. Group 2: Subscriber Growth Outlook - The competitive landscape for new wireless subscribers remains intense, leading to expectations of soft subscriber growth for the current quarter [2]. - Verizon's management indicated a reduction in aggressive promotional campaigns compared to the previous quarter, while competitors continue to pursue subscriber additions aggressively [2]. - The company anticipates surpassing the 900,000 net postpaid wireless subscriber additions recorded last year, despite the current challenges [4]. Group 3: Investment Considerations - Following the stock's decline, Verizon is trading at approximately 9.3 times this year's expected earnings and has a dividend yield of 6.2% [5]. - The recent price drop may present a buying opportunity for long-term investors seeking reliable dividend income, as the stock possesses solid defensive characteristics [5].

Core Insights - AT&T will release its first-quarter 2025 results on April 23, 2025, before the New York Stock Exchange opens [2][5] - A conference call to discuss the results will be hosted by AT&T at 8:30 a.m. ET on the same day, with a live webcast available [2][5] - Earnings release and related materials will be accessible on the AT&T Investor Relations website [2] Company Overview - AT&T connects over 100 million U.S. families and nearly 2.5 million businesses, providing services from traditional phone calls to advanced 5G wireless and multi-gig internet offerings [4]

Core Insights - AT&T's CFO will discuss the company's multi-year strategic growth plan at the Deutsche Bank Media, Internet & Telecom Conference [3] - The company is on track to meet its 2025 consolidated financial guidance and multi-year outlook [4][12] Financial Performance - AT&T expects full-year adjusted EPS of $1.97 to $2.07 and first-quarter adjusted EPS of approximately $0.48 or higher, consistent with or better than the first quarter of 2024 [6] - The company anticipates full-year free cash flow of over $16 billion and first-quarter free cash flow of approximately $2.8 billion or higher, also consistent with or better than the first quarter of 2024 [7] - AT&T expects to receive approximately $1.4 to $1.5 billion in cash payments from DIRECTV related to the sale of its 70% stake, with total after-tax cash payments expected to be $5.4 billion in 2025 [8] Strategic Initiatives - The company is focused on becoming the best connectivity provider in America, emphasizing customer-first strategies and continued network investment [12] - AT&T aims to achieve a net leverage target of net-debt-to-adjusted EBITDA in the 2.5x range in the first half of 2025 and maintain this leverage through 2027 [9]

NEW YORK, March 07, 2025 (GLOBE NEWSWIRE) -- Frank Boulben, senior vice president and chief revenue officer for the Consumer Group of Verizon ((NYSE, NASDAQ:VZ), is scheduled to speak at the Deutsche Bank Media, Internet & Telecom Conference on Tuesday, March 11, at 8:00 a.m. ET. His remarks will be webcast, with access instructions available on Verizon's Investor Relations website, www.verizon.com/about/investors. Verizon Communications Inc. ((NYSE, NASDAQ:VZ) powers and empowers how its millions of custom ...

Core Insights - Verizon is launching initiatives to promote digital wellness for families, recognizing the challenge of managing screen time with an average of 18 connected devices per household [1][2] - The company aims to empower families with resources and tools for digital safety, ensuring technology enhances lives rather than detracts from them [2][4] Group 1: Strategic Initiatives - Verizon is introducing digital wellness programs to provide training and resources for users of all ages, focusing on building healthy habits and relationships with technology [4] - The Verizon Arcade Unplugged pop-up experience will encourage screen-free family time through life-sized interactive challenges, coinciding with the Global Day of Unplugging [5] Group 2: Partnerships and Collaborations - Verizon is collaborating with Discovery Education to create a Digital Citizenship Initiative, offering free tools and resources for K-12 students [7] - A partnership with Sesame Workshop aims to study the digital well-being of children aged 8 to 12, addressing technology use challenges faced by families [7] - Workshops for parents and caregivers will be offered in select Verizon retail stores through My Digital TAT2, focusing on fostering children's digital wellness [7] Group 3: Tools and Resources - The Verizon Family app provides features like location sharing, parental controls, and crash detection to keep families connected and protected [6] - A new digital wellness course for older adults is being developed in collaboration with OATS from AARP, focusing on safe technology use and privacy protection [7] Group 4: Financial Performance - Verizon generated revenues of $134.0 billion in 2023, showcasing its commitment to innovation and meeting customer needs [8]