AT&T Shares Retreat as SpaceX Spectrum Deal Rattles US Telecom Sector

AT&T stock came under heavy selling pressure on Friday, with the shares sliding as investors digested a move by SpaceX that could reshape the competitive landscape of American mobile communications.

The decline was triggered by SpaceX's agreement to acquire the entire spectrum portfolio of Grain Management. The deal covers as much as 14 megahertz of paired spectrum, which the space company said would help its Starlink Mobile service establish itself as a major US mobile carrier. The transaction still requires approval from the FCC and remains subject to customary closing conditions.

News of the pact, first reported by Reuters and Bloomberg, weighed on the established carriers across the board. AT&T, Verizon and T-Mobile all felt the strain as market participants grew concerned that Starlink Mobile could emerge as a serious nationwide network operator. Access to low-band frequencies would allow the satellite provider to deliver mobile services directly to end-user devices, raising the specter of a deep-pocketed new rival.

Diverging Snapshots of the Selloff

Trading data painted a mixed picture of the damage depending on the moment it was measured. In pre-market action, AT&T was down 6.7% at EUR 20.71. By the time the session wore on, the stock had extended its losses to 8.2%, changing hands at EUR 20.38.

AT&T chief executive John Stankey voiced doubts about the venture in comments to Axios, calling SpaceX's attempt to take on traditional telecommunications providers an unsustainable strategy. Even so, the push underscores the mounting ambitions of alternative players in the incumbents' home market.

Scotiabank Trims Its Target

The competitive threat has already begun filtering into analysts' valuation models. On October 2, Scotiabank's Maher Yaghi cut his price target on AT&T to $27.50 from $29.25, while keeping a "Sector Perform" rating on the stock. The firm pointed squarely to broader valuation pressure across the US telecom sector, stemming from SpaceX as well as upheaval in the field of artificial intelligence.

Incumbents Forge Their Own Alliances

Rather than cede ground, the established carriers are striking back through collaboration. On October 1, AT&T, T-Mobile and Verizon agreed to form a joint venture aimed at expanding satellite-based connectivity in underserved parts of the United States and closing gaps in mobile coverage. Paul Roth was named interim head of the new entity.

AT&T is pursuing fixed-line expansion in parallel. On Tuesday, the company announced alongside Global Infrastructure Partners and CPP Investments that units Forged Fiber 37 and Gigapower would be merged. The planned wholesale business is intended to broaden open-access fiber internet in additional US communities.

Shareholders, meanwhile, have a near-term date to mark: October 12 is the dividend record date for both common and preferred stock.

Earnings on the Horizon

Concrete insight into how the business is faring will arrive shortly. AT&T is scheduled to publish third-quarter 2026 results on October 21 before the New York Stock Exchange opens, with management hosting a conference call for analysts and investors afterward. The company has reaffirmed the financial outlook and capital allocation plan laid out in its second-quarter 2026 report.