Diamonds and Dogs
AT&T (T) having a good day. AT&T is up 5% following better-than-expected earnings. The pandemic has hurt Warner Media with closed movie theaters, disrupted television production, and delayed sports events. However, AT&T has done well to add new wireless subscribers along with HBO and HBO Max streaming service which now has 38 million subscribers. Today's rebound snaps a 10-day losing streak from a nearly a 10 year low. Management now expects to show at least $26 billion in free cash flow in 2020. Not bad.
Profit-taking in Chipotle (CMG). The Mexican grill restaurant is down 5% following earnings. Revenue rose 14% year over year while earnings fell 1% year over year. Digital sales grew by 200% year over year to $776 million nearly half of third quarter total sales. The downside to digital sales is Chipotle pays out more in fees to its delivery partners than it collects from customers. Even with the pullback, the stock trades for 60 times next year's earnings and 5 times sales. Not a cheap stock.
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.