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AT & T Investment Analysis

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Introduction
Investment plays a crucial role in wealth creation and preservation. For this reason, investors take it upon themselves to analyse and weigh different options of investment aiming to minimize risk. The most common types of assets that investors go for include paper assets such as shares and bond, precious metals, land, and businesses. Whenever an investor is about to put his/her money in any of the assets, they consider the amount of risk, returns on investment as well as the ability of the asset to appreciate in value. It is due to such consideration that I have been requested by my grandparents to analyse the best company to invest in its shares. The company that came up as the best to invest in, was the AT&T Inc. (American …show more content…

The company also provides 4G coverage, which, when combined with other technologies, provides the customer with superior mobile broadband speeds for data and video services. Also, the company utilises the GSM digital transmission technologies that run on 3G and 2G to accommodate users who use outdated handsets. Moreover, telecom service provider has helped to expand into several locations such as cafes and …show more content…

The company has recently acquired Direc TV, which enables the company to expand its video offerings and negotiate content agreements with some of the largest media outlets in the nation. Such a transaction provides the company access to DTV subscribers. Such extra cash flow is necessary for the company since it has decided to invest in wireless/broadband line-up. Another opportunity is that the company has a fully developed Next Platform, which is because of acquiring the prepaid carrier leap that will assist in fending off rivals and attract low-income earners customers. Such traction will lead to higher subscriptions as customer's desire the latest smartphone technologies, but unwilling to place reasonable money down at the time of purchase (Leal, Nail & Parisi, 2014).
Threats
Over the past years, the need for speed and overall usage during data transmission has grown significantly. This has forced the company to experience soaring costs in boosting capacity and spectrum, especially in highly populated areas. In that case, service providers compete based on price, transmission, speed, reliability, and accessibility of which most businesses have reached parity. Therefore, the only area of competition remains on price and the capacity/spectrum that requires parting away with money both ways.
Pest analysis
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