New York, Jan 7, 2026, 10:42 EST — Regular session
- AT&T shares fell about 1% in early trade, lagging a flat broader market
- Arete cut the stock to “sell” with a $20 target price
- Investors are watching Friday’s U.S. payrolls report and AT&T’s Jan. 28 results
AT&T Inc (T.N) shares fell 1.1% to $24.06 in morning trade on Wednesday after Arete Research cut the telecom stock to “sell” with a $20 price target, a list of analyst actions showed. Verizon (VZ.N) and T-Mobile (TMUS.O) also slipped, while the S&P 500 ETF was little changed. 1
The dip comes as traders weigh new labour-market signals that can shift rate expectations — a big deal for dividend-heavy sectors that often move with Treasury yields. ADP said U.S. private employers added 41,000 jobs in December, and its chief economist, Nela Richardson, said “Small establishments recovered from November job losses with positive end-of-year hiring, even as large employers pulled back.” The government’s December payrolls report is due Friday. 2
AT&T has its own near-term test later this month. The company has said it will release fourth-quarter 2025 results before the New York Stock Exchange opens on Jan. 28, with a conference call set for 8:30 a.m. ET. 3
Outside the tape, AT&T landed a fresh distribution win in aviation. American Airlines said it will launch free in-flight Wi‑Fi for loyalty program members in partnership with AT&T, with the rollout starting this month and expanding to nearly all flights by early spring. “Free high-speed Wi‑Fi isn’t just a perk — it’s essential for today’s travelers,” American’s chief customer officer Heather Garboden said. 4
AT&T stock has already been on the back foot this week. Shares fell 1.5% on Tuesday to close at $24.34, even as the broader market advanced, leaving the stock well below its recent 52‑week high, according to MarketWatch data. 5
Wall Street is not lined up on one side. KeyBanc Capital Markets analyst Brandon Nispel recently named AT&T a top pick for 2026 and rated the shares “overweight,” a call that signals he expects the stock to beat peers over time. 6
But the setup can still turn fast. Heavy spending on fiber and 5G, plus any renewed price pressure in wireless, could hit margins and cash generation — and “free cash flow” (cash left after capital spending) is the number that underpins the dividend story.
