What Happened?
Shares of telecommunications conglomerate AT&T (NYSE:T) fell 1.9% in the morning session after EchoStar announced plans to sell its spectrum licenses to SpaceX, fueling concerns about increased competition in the telecommunications sector. The nearly $17 billion deal has investors worried as SpaceX's expansion of its satellite-based services could disrupt the market for traditional carriers like AT&T.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy AT&T? Access our full analysis report here, it’s free.
What Is The Market Telling Us
AT&T’s shares are not very volatile and have only had 3 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 7 months ago when the stock gained 7.1% on the news that the company reported fourth-quarter results that beat analysts' EPS expectations. Its revenue also narrowly outperformed Wall Street's estimates based on better postpaid phone net adds and better broadband net adds. Previously-provided 2025 guidance was largely reiterated, which is comforting. Overall, this quarter had some key positives.
AT&T is up 27.3% since the beginning of the year, and at $29.07 per share, it is trading close to its 52-week high of $29.59 from September 2025. Investors who bought $1,000 worth of AT&T’s shares 5 years ago would now be looking at an investment worth $985.14.
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