TMUSZ

SpaceX exceeded Q3 expectations with $14.58 billion in revenue and $0.35 diluted EPS. Starlink showed strong growth with improved ARPU at $69/month, while the AI/Super Intelligence segment surged to $7.6 billion in revenue.

Starship development progressed with planned November flight tests. However, accelerating capex ($35-40 billion expected in Q4) raises questions about future shareholder returns.

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 has acquired spectrum to build a terrestrial wireless network alongside its Starlink satellite service, causing telecom stocks like Verizon to drop ~10%. While the move signals SpaceX's intent to enter the wireless market, analysts debate whether satellite-based wireless can truly compete with established terrestrial networks.

The initiative would require $10+ billion in capex and faces significant physics challenges. Meanwhile, PepsiCo reports margin pressures as commodity costs rise faster than pricing power allows, and investors debate whether recent market gains are too concentrated in AI-related stocks.

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.

T-Mobile US is expected to report Q3 2026 results on October 28 with revenues projected at $23.31B and adjusted EPS at $2.86, driven by subscriber additions, broadband adoption, and device promotions. However, higher promotional spending, device subsidies, and rising operating costs may pressure profitability. The company's Earnings ESP of 0.00% and Zacks Rank #3 suggest no conclusive earnings beat is expected.

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.

SpaceX agreed to purchase Grain Management's 800 MHz spectrum portfolio for approximately $8 billion to enhance Starlink Mobile's indoor coverage capabilities. While the deal threatens traditional wireless carriers, the analyst argues SpaceX stock remains overvalued at over 80 times sales, with meaningful revenue from mobile service still over a year away.

T-Mobile (TMUS) receives a #3 (Hold) rating from Zacks with a VGM Score of A and Growth Style Score of B, indicating strong growth prospects. The company is forecasted to achieve 14.9% year-over-year earnings growth for the current fiscal year, with two analysts revising earnings estimates upward in the last 60 days. The Zacks Consensus Estimate increased by $0.30 to $11.17 per share, and TMUS boasts an average earnings surprise of +17.3%.

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.

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.

SpaceX stock has declined from its IPO high despite strong growth prospects in Starlink and Starship. However, the company's AI business segment is a major concern, with operating losses widening from $2.46 billion to $3.73 billion in H1 2026, erasing Starlink's $2.84 billion operating profit. At a 49x sales valuation with a $2.2 trillion market cap, the analyst recommends waiting until SpaceX proves its AI investments are not just a money pit before investing.

SpaceX's acquisition of 800 MHz low-band spectrum triggered a sharp selloff in legacy wireless carriers on October 9, 2026. AT&T dropped 9.81%, Verizon fell 8.75%, and T-Mobile declined 13.27% as investors worried about increased competition and the erosion of the telecom oligopoly. However, analysts note AT&T's strong dividend yield (5%) and fiber infrastructure may provide some downside protection.

SpaceX announced plans to acquire a low-band spectrum portfolio from Grain Management for $8 billion, completing its spectrum needs for mobile service. The low-band spectrum enables signals to travel through walls and solid structures, allowing Starlink to enhance its mobile service capabilities. While this threatens traditional telecom carriers, analysts expect SpaceX won't materially impact their operations until at least 2029.

SpaceX has purchased spectrum from Grain Management to launch Starlink Mobile as a major U.S. mobile carrier, causing T-Mobile stock to plunge 13%. The move transforms SpaceX from a T-Mobile partner providing emergency coverage into a direct competitor, threatening T-Mobile's expected growth advantage over AT&T and Verizon.

AT&T has agreed to form a new U.S. fiber joint venture with Global Infrastructure Partners and Canada Pension Plan Investment Board, combining its Forged Fiber 37 subsidiary with Gigapower. AT&T will own 50% of the venture, which aims to expand open-access fiber across 16 states and support the company's goal of reaching over 60 million fiber locations by 2030. The deal is expected to close in the first half of 2027.