NEW YORK (TheStreet) -- AT&T (T) fell Tuesday after two Democrats in the House of Representatives called for U.S. Congressional hearings into the telecommunications giant's announced merger with DirecTV (DTV).
Representatives Anna Eshoo and Doris Matsui from California told Federal Communications Chairman Tom Wheeler on Tuesday that the scope of the $48.5 billion deal warrants congressional action.
"Both are some of the largest mergers in our nation's telecommunications history," Matsui said today at a House subcommittee hearing about FCC oversight, according to Bloomberg. "Can anyone here today piece together the effects of the Comcast-Time Warner merger and the AT&T-DirecTV merger on consumers and a free and open Internet?" Eshoo said and added "these are massive decisions."
The stock was down 2.06% to $35.63 at 1:52 p.m.
Separately, TheStreet Ratings team rates AT&T INC as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AT&T INC (T) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."