As Investors Cheer AT&T Earnings Report, An Old Moat Crumbles

The tele-com giant ended up near 5% Wednesday and up near 2% today after  the latest AT&T Earnings Report had some outwardly negative news. As analysts have been watching the traditional cable business model wither, the diversified telecom conglomerate said it lost a record 351,000 traditional cable subscribers, providing ammunition to detractors. So with the apparent confirmation of the bear “moat loss” thesis in a traditional business model, why are the likes of Macquarie’s Amy Young so positive? It appears a new business model is being embraced.

The moat around cable television extends to distribution pipe as well as content creators

Cable television has been an example of...