The Spinoff Breathes New Life Into AT&T And Warner Bros. Discovery

Apr. 14, 2022 3:35 PM ETAT&T Inc. (T), T.PA, T.PC, TBB, TBCDIS, WBD36 Comments

Summary

  • Both AT&T and WBD have outperformed the broader market since the completion of the WarnerMedia spinoff.
  • Investor confidence in AT&T is showing a strong comeback as it redirects focus towards capitalizing on growing opportunities from its core communications business without added noise from media and entertainment.
  • The current market climate also bodes well for AT&T, as growing fears of an economic recession is buoying demand for inflation-resistant businesses and dividend-paying stocks.
  • And for AT&T shareholders who still possess the special WBD stock dividend, compounded upside awaits in the near-term.
  • Despite being the second largest in the industry, the newly formed media company remains significantly undervalued compared to its peers, even under the currently contracted risk-off environment for growth stocks.
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Toby Jorrin/Getty Images News

Both AT&T (NYSE:T) and Warner Bros. Discovery (WBD) have been outperforming the market since the completion of the long-awaited spinoff-merger transaction. As market participants continue to reel on the effects of another record-setting inflation print on

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Disclosure: I/we have a beneficial long position in the shares of WBD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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