Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two years. But there is no question some big-name stocks performed better than others since the pandemic bottom.
AT&T's Bumpy Ride: One company that has been a disappointing investment in the past two years has been telecommunications giant AT&T Inc. T.
At the beginning of 2020, AT&T shares were trading at $39.16. By the beginning of March, the stock had dropped to $36.37 after news of the virus spreading in China prompted concerns about a U.S. pandemic. On March 23, 2020, AT&T stock ultimately bottomed at $26.08. Fortunately, the stock rebounded somewhat from that point on as the broader market recovered.
By early June, AT&T shares were back above $33. But while the S&P 500 continued to rise in the second half of 2020, AT&T stalled out.
By late October, AT&T was back to testing its March lows, dropping to $26.35.
In May 2021, AT&T opened at its highest level since before the pandemic, topping out at $33.88 in response to the news that AT&T was merging WarnerMedia with Discovery Communications in a $43 billion deal.
AT&T In 2022, Beyond: AT&T completed its spin-off of WarnerMedia in April 2022, forming Warner Bros Discovery Inc WBD. As part of the deal, AT&T received $40 billion, which it will likely use to pay down its massive $178 billion debt load.
The price of the "new" AT&T shares were adjusted down to below $20 following the spin-off, and they currently trade at $20.09.
Still, investors who bought AT&T on the day it hit its 2020 pandemic low and held on have generated a positive return on their investment. In fact, $1,000 in AT&T stock bought on March 23, 2020, would be worth about $1,198 today, assuming reinvested dividends.
Looking ahead, analysts are expecting AT&T's stock to rebound in the next 12 months. The average price target among the 21 analysts covering the stock is $22, suggesting 10.9% upside from current levels.
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