AT&T Falls 11% as SpaceX Spectrum Deal Rattles Telecom Stocks

AT&T shares dropped 11% to $22.14 on October 9 after SpaceX agreed to buy spectrum licenses and expand Starlink Mobile, raising concerns about competition for wireless carriers. AT&T’s CEO said satellite direct-to-cell services address only a small market share.

The move represents a sharp market reaction to potential new competition from SpaceX’s satellite mobile service. AT&T’s CEO argues the addressable market for direct-to-cell services is limited, which may temper the competitive concern.

  • 1AT&T shares fell 11% to $22.14.
  • 2SpaceX agreed to buy spectrum licenses that could compete with AT&T and Verizon.
  • 3The decline was described as AT&T’s worst one-day drop since 2000.

Sources