Daily Investment Tips

We know the Iphone exclusivity has kept AT&T in wireless business. With the Iphone exclusivity set to end anytime in 2011 investors have a reason to be concerned with AT&T stock.

If you believe the loss of Iphone exclusivity will have a negative impact on AT&T, with subscribers jumping over to Verizon or slowing subscriber growth then you can profit from the loss by shorting AT&T stock.Talk to your broker about the possibility of shorting AT&T stock.

What AT&T Thinks?

According to AT& T filing with SEC, “We do not expect any such terminations to have a material negative impact on our wireless segment income, consolidated operating margin or our cash from operations,” AT&T said

AT&T said more than 80% of its contract customers are on family or business plans that are less likely to see turnover.

What Business analyst are Saying,

Some surveys are telling us as many as 23% of AT&T users are likely to switch to Verizon when the Iphone goes to Verizon.

It’s hard to predict the impact of the loss of Iphone exlusivity, any position an investor takes on AT&T stock now will be speculative.

written by Constantine Njeru \\ tags: Amp, Business Analyst, Business Plans, Contract Customers, Exclusivity, Investor, Investors, Iphone, Negative Impact, Operating Margin, Segment Income, Stock Analysis, Subscriber Growth, Subscribers, Surveys, Terminations, Turnover, Verizon, Wireless Business, Wireless Segment