New York, February 4, 2026, 15:26 EST — Regular session
AT&T shares climbed on Wednesday following the announcement of a deeper partnership with Amazon Web Services. The telecom giant plans to move parts of its network workloads to the cloud and expand broadband coverage via Amazon’s low-Earth-orbit satellites. (MarketScreener)
Why it matters now: U.S. carriers are pouring money into fiber expansion and linking their networks more tightly with major cloud providers, aiming to capture enterprise demand and data-center growth driven by AI. This sector has fared better than some tech segments recently, as investors steer clear of high-growth stocks over valuation concerns. (Reuters)
AT&T gained roughly 1.5%, hitting $27.22 in afternoon trades, after earlier peaking at $27.49.
The company plans to shift some workloads from on-premises systems to AWS Outposts — Amazon’s managed hardware that delivers AWS cloud services directly onsite — while linking AWS data centers via high-capacity fiber. It also intends to collaborate with Amazon Leo, Amazon’s low-Earth-orbit satellite network, to provide fixed broadband for business clients in areas with limited terrestrial coverage. (Business Wire)
“This collaboration with AWS” builds on fiber as “the foundation” for next-generation networks, AT&T Business product head Shawn Hakl said. AWS’s telecoms vice president Jan Hofmeyr added the companies are combining AT&T’s fiber with AWS cloud and AI tools. (Business Wire)
The announcement comes just days after AT&T wrapped up its $5.75 billion all-cash acquisition of the bulk of Lumen’s mass-market fiber business. The deal added over 1 million fiber subscribers and more than 4 million fiber locations to AT&T’s network, the company said. CEO John Stankey noted the acquisition would expand AT&T’s fiber reach to “millions more people.” (AT&T Newsroom)
Investors are banking on the idea that bundling more fiber households with wireless service will reduce churn and boost returns. AT&T stuck to the guidance it shared alongside its fourth-quarter results back in late January. (Reuters)
But Wall Street will be looking for specifics on the costs and schedules. AT&T and AWS said they will provide more information at Mobile World Congress 2026, set for early March. (Business Wire)
Senator Maria Cantwell raised concerns Tuesday about AT&T and Verizon withholding network-security assessments linked to “Salt Typhoon,” an alleged Chinese espionage campaign. She pushed Congress to subpoena the CEOs of both companies to testify. (Reuters)
Scrutiny like that often leads to higher costs — think audits, remediation, stricter regulations — even if customers don’t shift their habits immediately. The success of the cloud-and-satellite strategy hinges on seamless integration and Amazon hitting its service scaling targets on time.
The focus now shifts to whether AT&T can sustain its gains amid a volatile market. Attention will soon turn to what AT&T and AWS reveal — or withhold — at Mobile World Congress this March. (Reuters)
