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This sucks for the employees but investors should see it as cost-cutting measures. I’d consider this bullish.
What is the expected impact on stock price?
Got to pay those dividends somehow.
I’m surprised telecoms still have stores open. Customers would have a much better experience AND the company would save money if they ditched storefronts entirely and then expanded virtual support.
The bull perspective is that AT&T has moved enough of their business now to remote services and in-store partners (Apple, Target) that they no longer need to maintain their legacy specialty stores. You don’t need an AT&T store in the same mall as a Best Buy. Their investments in remote customer service and retail partnerships are now ripe for harvest (cost reduction).
Physical telecom stores are a relic from an era when device management needed to be done in person and consumers weren’t ready to trust brands without a physical option for customer service. It’s 2020 now.
If you want to freak out about something look at commercial real estate. I’m keeping an eye on strip malls in medium sized cities along the gulf coast for 2021 purchase. I don’t really know how it’ll recover so maybe I’m just catching a falling knife but I expect a bloodbath in those high cap strip malls in the next 6-12 months. Those B class properties were leveraged out the ears for ~6% cap rates for about 5 years and now all their tenants are, best case scenario, at severely reduced capacity — the ones that aren’t outright closed. Many owners will be forced to sell and buyers aren’t interested in dying retail. There’s a shopping spree in the making. What are these AT&T husks going to become next? There’s opportunity for whoever sees and aids that transition.