AT&T Stock, BlackRock To Form Joint Venture Expanding Fiber-Optic Network

AT&T (T) and BlackRock, the world’s largest asset manager, have agreed to form a joint venture that will expand fiber-optic network and broadband services outside the telecom company’s current wireline footprint. AT&T stock edged up on the news.

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Called Gigapower, the joint venture will sell wholesale fiber services to internet service providers and other businesses.

Gigapower will expand fiber-optic network services outside of AT&T’s traditional 21-state wireline service footprint. In addition, AT&T still plans to expand its own fiber-optic network to 30 million-plus homes and businesses by the end of 2025. At the end of the September quarter, it had 18.5 million.

AT&T Stock: 2023 Free Cash Flow Guidance Key

AT&T expects to report consumer subscribers served through Gigapower in the operational results of its consumer wireline business unit. Any impacts to AT&T’s 2023 capital investment or free-cash-flow forecast will be included in AT&T’s 2023 financial guidance.

Also, AT&T stock edged up a fraction to 18.30 in morning trading on the stock market today.

In addition, AT&T will report fourth-quarter 2022 results in January. Analysts have stated that AT&T’s free-cash-flow guidance for 2023 will be key for T stock.

In the September quarter, AT&T broadband subscriber additions were a bright spot.

AT&T Outperforms S&P 500

AT&T added 338,000 fiber broadband subscribers, topping views from AT&T stock analysts of 330,000.

T stock had dipped 1.6% in 2022 as of Thursday’s market close, outperforming the S&P 500. The S&P 500 has retreated 20% this year.

AT&T stock holds a Relative Strength Rating of 80 out of a best-possible 99, according to IBD Stock Checkup.

WarnerMedia broke away from AT&T and merged with Discovery in early April. The new media company is called Warner Bros. Discovery (WBD).

BlackRock is a top provider of exchange-traded funds and other low-cost alternatives that track market indexes.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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