Shares of AT&T Inc. (NYSE: T) had their biggest decline in more than 5 years after the largest phone company warned of "softness" in its consumer business and that more of its customers have had their service disconnected for failing to pay their bills.In late afternoon trading, the exclusive seller of the iPhone, was down $3.51, or 8.6%, to $37.52. The company's mobile phone and corporate business has not been hurt by the slowdown, Bloomberg News quotes Chief Executive Randall Stephenson as saying.
Shares of AT&T have jumped 12% over the past year. This year, though, the picture is different. The Nasdaq Composite Index has plunged about 8% in the early days of 2008 amid declines by stalwarts such as Google Inc. (NASDAQ: GOOG), Apple, Inc. (NASDAQ: AAPL) and Microsoft Corporation (NASDAQ: MSFT). AT&T has dropped almost 9%. The tech index hasn't had a positive day yet this year.
What's going on here? I don't think it can all be profit taking. Investors seem to be concerned that the slowdown in consumer spending will hit corporations as well. That won't be clear for another few months. It certainly kills some of the buzz from the Consumer Electronics Show.
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Reader Comments (Page 1 of 1)
1-08-2008 @ 5:37PM
Bill Pilker said...
Due to the decline in manufacturing, worker, low level management and adminstative personnell have fewer job opportunities that lead to higher salaries. The USA Government has decided not to protect the American worker. Debt and cost of living are high with the American worker. Consumption will decline.
1-09-2008 @ 5:48PM
Gumby said...
Big Oil crushed everything, patsies!!
1-10-2008 @ 8:30AM
George said...
AT&T says their price in stock fell from people not paying their bills and having their phone service shut off. Their probberly right. I got tired of paying 128.00 a month year in and year out so I stoped paying my bill after I signed up for vonage. You have cable or satlilite comming into your home anyway so put it to good use hook up vonage, their customer service is better their is no difference in sound quality.You get two months free when the change over is in the process. It was a hard dession to make since I was with AT&T for over 30 years. Money is hard to come by theese days. So now I'm paying 30.60 a month thats with tax tag & title, and banking 97.30 a month for the same service that I had and I'm a valued customer there happy to have my business.