New York, Feb 4, 2026, 12:52 EST — Regular session
- Shares of AT&T climbed roughly 2% by midday following news of a connectivity agreement with Amazon units
- The plan calls for moving certain workloads to AWS Outposts and expanding fiber connections to AWS data centers
- A distinct Senate effort to obtain telecom security documents kept the spotlight on the sector
Shares of AT&T climbed 2.1% to $27.39 by midday Wednesday following the company’s announcement of a strategic connectivity initiative involving Amazon.com’s cloud division and its low-Earth-orbit satellite operations. (Yahoo)
This deal is crucial as it taps into two key concerns from investors: can AT&T cut network costs while boosting sales of high-margin business connections?
The timing is tricky. Telecom carriers are pushing “secure and resilient” networks, even as Washington intensifies its scrutiny on what they knew—and when—regarding alleged breaches and surveillance risks.
AT&T will move some workloads onto AWS Outposts — the Amazon hardware installed directly in customer data centers — and lean on Amazon tools like Amazon Q Developer to speed that transition. The company also plans to link AWS data centers with its high-capacity fiber network and tap into Amazon Leo’s low-orbit satellite system to broaden broadband coverage. Shawn Hakl, an exec at AT&T Business, called fiber “the foundation” for what’s next. (Businesswire)
The stock had already gained ground the previous day. On Tuesday, AT&T closed 2.0% higher at $26.83, beating the broader market, which ended lower, MarketWatch data show. (Marketwatch)
Investors are now grappling with new political pressure over telecom security. Senator Maria Cantwell claimed on Tuesday that AT&T and Verizon are preventing the release of network security reports linked to a suspected Chinese spying campaign called “Salt Typhoon.” She called for a hearing involving the CEOs of both companies. (Reuters)
That context turns Amazon’s news into more than just another tech story. When AT&T hints at cutting network costs without sparking another security battle, investors chasing stable cash flow tend to perk up.
The downside is obvious. Any Senate hearing, fresh document leaks, or signs that defenses were inadequate could trigger additional spending and divert management’s focus—just as AT&T works to manage a complicated cloud migration with Amazon.
Traders are looking for evidence the deal delivers financial benefits soon: defined timelines, clear spending plans, and whether it drives real enterprise demand instead of merely reallocating expenses.
AT&T and AWS plan to reveal more details at Mobile World Congress in Barcelona, scheduled for March 2-5. (Mwcbarcelona)
