Got this information regarding AT&T stock problems from a trading platform.
Quote: "On July 14, 2023, Bloomberg reported that AT&T faced "potentially high costs" if the Company is required to "clean up contamination due to lead-clad wiring throughout parts of its nationwide network." Bloomberg also reported that, according to a JPMorgan analyst, AT&T has a service area that covers about 40% of US homes plus an extensive long distance network, and that AT&T therefore has the largest exposure to the potential costs among national carriers.
On this news, AT&T's stock price fell over 5% during intraday trading on July 14, 2023, thereby injuring investors. "
Quote: "AT&T shares are down more than 7% this week, trading at levels not seen in nearly three decades, as Wall Street analysts raised questions about liabilities related to the cables. One analyst estimated it could cost $59 billion for the telecom industry to remove all the lead cables nationwide.
"Potential copper lead sheathing liability is unquantifiable at this time, but will be a substantial long-term overhang on AT&T and the industry," wrote JPMorgan analyst Philip Cusick in a note to investors that downgraded his recommendation on AT&T to "neutral" from "overweight."
The Journal investigation showed how phone companies have left behind more than 2,000 old lead-encased phone cables, hung up on poles, under waterways and in the soil around the U.S. Journal testing found numerous cables leaching lead into soil and water, at levels exceeding regulatory safety guidelines."