It’s no secret that the U.S. telecom industry is a choppy one. Changes in the way consumers use their mobile networks, landlines and internet connections have made it a difficult time for companies like AT&T Inc. (NYSE:T) and Verizon Communications Inc. (NYSE:VZ) to operate. Fierce competition for new subscribers, new legislation affecting service providers and shakeups from newbies like Netflix, Inc. (NASDAQ:NFLX) have all weighed considerably on the sector. However, if you’re willing to wade into the troubled waters in the telecom space, T stock is the way to go.
Not only does AT&T stock provide investors with steady growth and passive income, but the company has been working to ensure that it remains at the top of the pack in the future as the industry evolves.
Three Reasons T Stock Is Still a Rock Star
AT&T may be operating in a challenging industry, but the firm certainly knows how to reach beyond the telecom space to continue growing in unexpected ways. T stock isn’t going to have to go at it alone in the years ahead as technology changes rapidly. Instead, the firm has been able to create relationships with companies across other industries that are likely to grow as technology evolves.
Perhaps the most promising relationship that T stock boasts is the one it has with American automaker Ford Motor Company (NYSE:F).
Most agree that connected cars are the future, so ensuring that its own service is well integrated in the connected car ecosystem is essential for AT&T stock. Not only is AT&T making major strides in the driverless car space through its partnership with Ford, but the company is also planning to connect some 10 million Ford vehicles to the internet by 2020.
Another big reason to choose AT&T over its peers in the telecom space is that AT&T has aligned itself with Amazon.com, Inc. (NASDAQ:AMZN) in an effort to expand its cloud computing network. AT&T has a NetBond cloud networking system that can be linked to Amazon Web Services (AWS), the largest cloud computing network on the planet. The partnership also connects devices and appliances to the internet via the AT&T network and allows the two companies to join forces against cyberattacks by integrating their cybersecurity platforms.
While it’s all well and good to talk about the potential growth opportunities that T stock has built for itself in the future, it’s also important to take a hard look at the telecom industry right now and where AT&T stands among its peers.