NEW YORK, June 5, 2026, 15:04 (EDT)
AT&T Inc shares picked up 1.1% to $23.02 late Friday, recovering a bit after a tough week that saw a selloff as the company’s cash-return case faces a new test with SpaceX’s Starlink entering the picture. Verizon moved up 2.6%, and T-Mobile US gained 2.2%. The SPDR S&P 500 ETF, which tracks the broader market, dropped 2.4%.
AT&T’s investment story has leaned on stable wireless numbers, fiber growth, and payouts for shareholders, but that got called into question this week. Oppenheimer put out a warning, and Reuters picked it up, saying SpaceX’s Starlink could shake up the $1.6 trillion U.S. communications industry. The note pointed to established broadband names like AT&T as possibly most exposed, with SpaceX expected to hit Nasdaq on June 12 at a $1.75 trillion valuation.
Oppenheimer’s Timothy Horan downgraded AT&T to Perform from Outperform and dropped his $32 price target, Barron’s said. “We think longer-term broadband subscriber growth and eventually mobile is at risk,” Horan said in a note. LEO satellites, which orbit closer to Earth, reduce connection delays and have become a stronger competitor to land-based networks. Barron’s
Stocks dropped as Wall Street took a hit. The market slipped after the U.S. economy reported 172,000 new jobs in May, blowing past forecasts and hurting chances for any Fed rate cuts. Lower rates would make borrowing cheaper, but strong job numbers make that less likely. “It’s a good report,” said Peter Cardillo, chief market economist at Spartan Capital Securities. He said this backs up the argument that the Fed’s next move could be to raise rates. Reuters
But the rebound doesn’t resolve the risk. If satellite broadband narrows the gap with cable and fiber for price and reliability, AT&T could see slower internet subscriber growth, ramped-up promotions or face a longer wait to make back its network outlays. Horan said Starlink pricing was “on par with legacy broadband,” but T-Mobile CFO Peter Osvaldik said there was no realistic way for Starlink to compete against a terrestrial network. That split shows how telecom execs are divided on the issue. MarketWatch
AT&T is leaning on execution. In April, the company posted first-quarter revenue of $31.5 billion. Net adds for postpaid phones came in at 294,000, while fiber net adds totaled 292,000. Free cash flow for the quarter was $2.5 billion. AT&T kept its 2026 free cash flow goal at more than $18 billion and is sticking with plans for about $8 billion in buybacks.
AT&T is still pushing network applications that go past just home broadband or wireless service. On Wednesday, the company said it added LiveOne and Cisco to its Connected Car platform. “The platform was built to help automakers move faster to scale and personalize digital experiences,” said Matt Harden, AT&T’s vice president for Connected Solutions. AT&T Newsroom
AT&T’s next events are approaching. CFO Pascal Desroches is set to appear at the Mizuho Technology Conference on June 9. Second-quarter results are due out before the NYSE opens on July 22. The company is sticking to its forecast for second-quarter free cash flow, still calling for $4.0 billion to $4.5 billion.
AT&T shares moved higher Friday, but questions remain. For now, investors are watching to see if the company can keep eyes on fiber, churn and cash returns as SpaceX moves Starlink closer to being a public-market benchmark. The latest results aren’t a total green light.
