NEW YORK, July 8, 2026, 17:01 (EDT)
AT&T Inc. shares didn’t move much late Wednesday after Wells Fargo started coverage with a bearish view, adding pressure to a telecom stock facing questions about SpaceX’s Starlink plans.
AT&T traded at $21.12 lately, off just under 0.1%. Verizon edged down 0.3%. T-Mobile dropped 2.5%. The moves hit the sector, not just one name.
Why it matters: Investors are rethinking how to value a new type of rival. Starlink isn’t just about rural broadband anymore. Analysts are asking if satellite internet can go after more mobile business, an area where AT&T and Verizon earn most of their money.
Wells Fargo’s Steven Cahall launched coverage of AT&T with an Underweight rating and set an $18 price target. That rating signals Cahall sees the stock underperforming its peers or a benchmark. In a note cited by Barron’s, Cahall said SpaceX’s “connectivity ambitions” are now a key topic for wireless carrier investors. Barron’s
Cahall said AT&T is “least likely” among the big three carriers to sign a Starlink MVNO deal. MVNOs use another operator’s network to offer mobile service. If carriers hold out on a wholesale deal, Cahall wrote, SpaceX “may well build” its own fourth wireless network, Investor’s Business Daily wrote. Investor’s Business Daily
Morgan Stanley’s Sean Diffley said SpaceX and Starlink might have close to $200 billion in global connectivity capex over five years, with mobile and spectrum accounting for around 80% of that. Capital expenditure refers to spending on long-term items like networks, satellites, or spectrum licenses.
The market was under pressure. The S&P 500 dropped 0.28% Wednesday as oil prices climbed and investors tracked new U.S.-Iran tensions. The Nasdaq managed a 0.20% gain. The Dow shed 1.09%. “Duration is the key here. How long does this go on?” Rob Haworth, senior investment strategist at U.S. Bank Wealth Management, told Reuters. Reuters
AT&T is still betting on fiber and bundled wireless. In April, management reported it picked up 292,000 new fiber subscribers and 294,000 new postpaid phone customers in Q1. CEO John Stankey called it AT&T’s “best first quarter ever” for advanced connectivity internet net adds. AT&T Newsroom
Next quarter’s earnings is shaping up as a bigger event than normal. AT&T plans to post Q2 results before the NYSE bell on July 22, with a call set for 8:30 a.m. ET. The company kept its quarterly common dividend at 27.75 cents per share, payable Aug. 3.
The bearish view isn’t set. Starlink could go with partnerships instead of pouring money into more ground infrastructure, and satellite might stay a niche for rural or backup use longer than some worry. AT&T’s risk is clearer: if the new mobile player pushes prices down before fiber gains make up the shortfall, both service revenue and subscriber adds could fall short.
NYSE’s main session had closed in New York. Regular trading hours are from 9:30 a.m. to 4:00 p.m. Eastern, with after-hours trading offered on certain NYSE platforms.
