AT&T, Verizon and T-Mobile Stocks Sink as SpaceX Expands Cellula

AT&T (T) stock fell 7% to $22.87, along with peers T-Mobile (TMUS) and Verizon (VZ), after SpaceX acquired a spectrum portfolio. Scotiabank cut AT&T's price target to $26.50. AT&T is down 12% over the past year, testing its 80-day moving average.

SpaceX agreed to buy 800 MHz spectrum licenses from Grain Management for $8B. AT&T, Verizon, and T-Mobile shares fell, losing $39B in market value. SpaceX plans to use the spectrum to enhance Starlink Mobile's indoor coverage. Analysts note potential disruption to incumbent carriers, while tower owners like Crown Castle and American Tower gained.

SpaceX agreed to acquire 800 MHz wireless spectrum from Grain Management, aiming to expand Starlink Mobile coverage. The deal, pending FCC approval, may enhance SpaceX's cellular service capabilities. AT&T (T), Verizon (VZ), and T-Mobile (TMUS) shares fell 6%, 5.85%, and 6.63% respectively in after-hours trading. SpaceX (SPCX) shares declined 4.19% before gaining 2.32% in late trading.

Telecom stocks fell Friday after SpaceX announced a deal to buy spectrum licenses, aiming to become a major mobile carrier. SpaceX needs FCC approval. AT&T, Verizon, and T-Mobile dropped ~7% pre-market, while SpaceX gained 3%. Analysts see limited near-term risk to incumbents. Cell tower operators may benefit.

SpaceX agreed to acquire $8B in low-band spectrum licenses from Grain Management to expand Starlink Mobile, aiming to compete in the US mobile market. The deal, pending FCC approval, combines satellite and terrestrial infrastructure. Shares of AT&T, T-Mobile, and Verizon briefly dropped on the news.

AT&T (T) received court approval for a $177M settlement related to a customer data breach. The company, along with Verizon and T-Mobile, launched a joint venture to share spectrum and satellite access. AT&T's market cap is $167.7B. The settlement and venture may impact AT&T's risk profile and network expansion.