Milhouse123 wrote: robertbig wrote: bought some in the $51 range
if it stays here and pays out the dividend i'm happy
if it floats above $56, i'm happy to sell
seems like a business in slow decline, or stagnation, but curious if anywhere here has a long term bull take where the stock price actually climbs and returns are driven by stock price appercation and not just the dividend
thanks
One way is basically what they are doing which is cutting costs to increase margin and making their products/services more profitable. They are also talking about implementing AI further in the business to help with efficiencies.
The other way is growing their business. But it's looking like a tough slog because nothing in their business really stands out.
On the wireline side, getting fiber to the home across their entire footprint gives them the opportunity via more bandwidth to sell more products: internet, TV, security, phone, whatever. Slowing their fiber rollout to make a point, even though they have a valid argument, is going to hurt their growth.
On the wireless side, there was a lot of early hype around 5G but there hasn't really been the a lot of practical use cases that drive revenue and monetization yet even though there's been so much capital invested in terms of infrastructure and spectrum. It still early though as there's still another spectrum auction still to come. Early use cases seem to be selling fixed wireless internet access for places where it won't be cost effective to string fiber and network slicing for companies that need a dedicated wireless lane.
Traditional media is such a tough business right now. However, I also don't think the braintrust at Bell Media are creative enough. Sports is one of their profitable assets yet they need to still better monetize it. And they have to better integrate the content they own to multiple streams of media.