Phone network provider AT&T (NYSE:T) said 73 million current and former customers had their records accessed in a data breach.
The company reported on March 30 that its data was found on the dark web two weeks prior. A preliminary analysis indicated that 7.6 million current AT&T account holders and approximately 65.4 million former account holders had their records stolen. This includes personal data such as Social Security Numbers.
AT&T said it is still investigating the incident. The data set dates from 2019, and AT&T still has no idea how the breach happened.
Passwords for current accounts were reset, AT&T said. T stock opened this morning at $17.10 per share, a market capitalization of about $122 billion.
Death Star Hit
Once upon a time, AT&T was a dominant American technology company. As it approaches its 150th birthday, it is best known for its cellular phone network.
AT&T today is a shadow of its former self, and T stock is considered a yield trap. A dividend of almost 28 cents/share yields 6.3%, and its price-to-earnings ratio is below 9. Seeing those numbers and expecting some stability two weeks ago, Barron’s detailed a bull case for the stock, based on analyst upgrades.
AT&T’s biggest problem is its debt, which stood at $155 billion at the end of 2023. The enterprise value of the company is now $277 billion. The company never recovered from decisions by former CEO Randall Stephenson to buy DirecTV and Time Warner. Its internet network is now losing customers steadily as cable TV becomes less popular.
AT&T should be ready for a turnaround but now it’s having trouble just running the business. The cellphone network suffered a complete outage for several hours in February.
AT&T Data Breach: What Happens Next?
AT&T wants to tell the world it’s sticking to its knitting as a communications powerhouse. But it keeps dropping stitches.
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
