AT&T stock is undervalued; trading at ~$22 vs fair value >$30 indicates significant upside and a buying opportunity.
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Elon Musk and SpaceX delivered bad news to investors in AT&T, Verizon, T-Mobile, and AST Space Mobile.
Shares of AT&T, T-Mobile, and Verizon were hit hard, and are down more than 10% each today.
The CEO of AT&T commented on these developments, saying: "I think they will find places where they clearly have a good solution." But ultimately, the CEO of AT &T does not feel threatened by the expansion of SpaceX's network.
Similarly, I believe that AT&T has sufficient upside potential here compared to my estimate of the fair value of its business. My estimate for the fair value of AT &T stock is over $30 per share, and if you look at the current market price , it is slightly over $22.
Therefore, I believe there is sufficient room for AT&T stock to rise, although my fair value estimate is not currently displayed on the screen , as it is being loaded via the Google Finance function here.
But when it appears, you'll notice it's trading at around $22, while my estimate of its intrinsic value is over $30, leaving plenty of room to rise for AT&T stock as well.
The other three companies were undervalued with a sufficient margin of safety to justify taking advantage of this buying opportunity at this low point. If you are a passive income investor and interested in taking dividends from Verizon and AT& T,
What this channel has said about $T
Parkev Tatevosian, CFA has 3 calls on this stock; only the adjacent ones are shown.