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AT&T stock fell 8% on Friday after reports that SpaceX is negotiating access to 80,000 U.S. cell sites to build a rival wireless carrier. Despite the threat, AT&T remains well-positioned with strong Q3 earnings, growing customer base, and improving free cash flow projections. Building a nationwide carrier would require tens of billions in investment and significant time.

AT&T stock plunged 7.96% after Bloomberg reported SpaceX is negotiating access to approximately 80,000 cell sites to build a fourth nationwide wireless network. The news reignited carrier competition concerns, pressuring the entire wireless sector. Despite AT&T beating earnings estimates and raising 2026 guidance on October 21, investor focus shifted to competitive threats from SpaceX's potential entry into the market with satellite-supplemented terrestrial coverage.

SpaceX's reported plans to secure 80,000 U.S. cell sites as it pursues becoming a fourth nationwide wireless carrier sent tower company stocks soaring while major wireless carriers plunged. However, the article cautions that the market may be overreacting to a deal that hasn't been finalized, noting SpaceX would start from scratch with no customers, less spectrum than competitors, and a commercial launch not expected until late 2027.

T-Mobile stock fell 5% after Bloomberg reported that SpaceX plans to lease 80,000 cellphone towers and build a fourth major mobile telecommunications network to compete with T-Mobile, Verizon, and AT&T. SpaceX previously purchased spectrum for its Starlink Mobile service and plans to launch 15,000 direct-to-cell satellites. With SpaceX's 45% operating margins in its Starlink Connectivity business versus T-Mobile's 22% margins, the new competition threatens to further compress T-Mobile's profitability.

SpaceX is negotiating with major cellular infrastructure providers to secure at least 80,000 cell sites across the U.S. to establish itself as a fourth major wireless carrier. The move benefits tower operators like Crown Castle and American Tower through potential leasing deals, while traditional carriers AT&T, Verizon, and T-Mobile face competitive pressure.

AT&T demonstrates solid operational progress with 442,000 fiber customer additions and 5% wireless service revenue growth in Q3 2026, but elevated leverage of 3.13X following its $23 billion EchoStar spectrum deal raises concerns. While valuation appears modest and growth strategies show promise, legacy revenue declines and higher interest costs warrant a cautious approach.

AT&T shares dropped 13.4% over four weeks despite reporting 20.4% earnings growth and raising its 2026 profit outlook to $2.40 per share. The company added 442,000 fiber subscribers and 379,000 postpaid phone subscribers, but faces headwinds from promotional pricing pressure and elevated debt levels at $149.8 billion. AT&T trades at a valuation discount to its five-year median, warranting a balanced investment approach.

AT&T reported better-than-expected earnings with record internet additions and raised its 2026 profit outlook, but the stock fell 6.45% as investors focused on higher spending needs and growing competition from SpaceX's direct-to-device connectivity plans. The company also agreed to sell its Mexico wireless unit for $2 billion.

AT&T exceeded earnings expectations in Q3 2026 with adjusted EPS of 65 cents (up 20.4% YoY) and revenues of $32.32B (up 5.3% YoY). The company achieved record internet additions of 769,000 connections, including 442,000 fiber and 327,000 fixed wireless. AT&T raised its 2026 adjusted EPS outlook to $2.40 and targets at least $18B in free cash flow, while managing legacy business contraction and returning $4.8B to shareholders.

AT&T reported Q3 2026 earnings of $0.65 per share, beating consensus estimates of $0.61, with revenues of $32.32 billion exceeding expectations by 2.02%. Despite the earnings beat, AT&T shares have declined 5.7% year-to-date compared to the S&P 500's 12.7% gain. The stock received a Zacks Rank #3 (Hold) rating, suggesting near-term performance in line with the market.

Verizon Communications is expected to report Q3 2026 earnings on October 26 with consensus EPS of $1.27 (up 5% YoY) and revenues of $34.81 billion (up 2.9% YoY). However, the company's negative Earnings ESP of -0.68% combined with a Zacks Rank #3 makes it difficult to predict an earnings beat. In contrast, AT&T is expected to beat consensus estimates with a positive Earnings ESP of +3.77%.

The article explains the Zacks Earnings ESP (Expected Surprise Prediction) tool, which identifies stocks likely to beat earnings estimates by comparing the most recent analyst estimates against consensus estimates. Two technology stocks highlighted are AT&T with a +3.77% ESP ahead of October 21 earnings, and Broadcom Inc. with a +1.86% ESP ahead of December 10 earnings. Both stocks hold Zacks Rank #3 (Hold) ratings and positive ESP metrics suggesting potential earnings surprises.

SpaceX is transitioning from a pure space launch company to an AI and telecommunications giant. While the company will reduce launch frequency in 2026-2027 as it retires Falcon 9 rockets, larger Starship vehicles will compensate with greater payload capacity.

The real growth opportunity lies in Starlink's expansion into mobile telecommunications, with V3 satellites promising 100x bandwidth increase. SpaceX recently acquired $8 billion in cellular spectrum licenses to become a major U.S. mobile carrier, rivaling Verizon and AT&T.

AT&T (T) closed at $23.42, up 1.61%, outperforming the S&P 500's 0.33% gain. The company is expected to report Q3 2026 earnings on October 21 with projected EPS of $0.61 (up 12.96% YoY) and revenue of $31.68 billion (up 3.17% YoY). AT&T holds a Zacks Rank #3 (Hold) with a Forward P/E of 9.89, trading at a discount to its industry average.

AT&T is positioned as a likely earnings beat candidate for its Q3 2026 results expected October 21. The company has a positive Earnings ESP of +3.77% combined with a Zacks Rank #3 (Hold), suggesting it will likely exceed consensus EPS estimates of $0.61 per share. AT&T has beaten consensus estimates in 3 of the last 4 quarters, with the most recent quarter delivering a +10.17% surprise.

AT&T and Verizon are compared as investment options for 2026. AT&T has improved profitability with a 17.4% net margin after divesting media assets, while Verizon has pursued aggressive acquisitions to expand fiber and broadband capabilities. Despite AT&T's higher net margin and lower valuation, the analyst recommends Verizon due to its superior dividend track record (20 consecutive years of increases, 6.57% yield vs. AT&T's 4.94%), stronger free cash flow, and more attractive forward P/E ratio, despite higher debt levels from recent acquisitions.

AT&T is expected to report Q3 2026 earnings on October 21 with revenues of $31.68 billion and EPS of 61 cents, supported by a positive 3.77% Earnings Surprise Prediction. The company's fiber expansion to 38.6 million locations and network modernization efforts show promise, but intense competition from Verizon and T-Mobile, along with substantial capital requirements and leveraged balance sheet, remain key challenges. AT&T holds a Zacks Rank #3 (Hold) rating.

AT&T has underperformed the broader market, declining 14.9% over the past month compared to the S&P 500's 2.4% gain. The company is expected to post earnings of $0.61 per share for the current quarter with 13% year-over-year growth, though consensus estimates have declined slightly.

AT&T receives a Zacks Rank #3 (Hold) rating, suggesting it may perform in line with the market. The stock is valued at a discount to peers with an A grade on the Value Style Score.

The article discusses the Zacks Earnings ESP (Expected Surprise Prediction) tool, which identifies stocks likely to beat quarterly earnings expectations. Two stocks highlighted are Advanced Micro Devices (AMD) with a +0.30% ESP and AT&T (T) with a +3.77% ESP, both holding Zacks Rank #3 (Hold) ratings and positioned to potentially post earnings beats in their upcoming reports.

SpaceX agreed to acquire a nationwide spectrum portfolio from Grain Management to expand Starlink's satellite internet into mobile services, causing major telecom stocks to plunge on October 10. Verizon dropped 8.75%, T-Mobile fell 13.27%, and AT&T declined 9.81%, marking their worst days in years.

However, analysts believe established carriers face limited near-term competition as building a rival network would require substantial time and investment. Space-focused ETFs are expected to benefit long-term from the deal.