AT&T shares fell amid concerns that SpaceX (SPCX) could enter the U.S. mobile market, even though the company beat expectations with adjusted EPS of $0.65 versus a $0.60 estimate and revenue rose 5.3% to $32.3B. CEO John Stankey argued low-earth-orbit satellites will expand connectivity in rural areas but cannot replace wireless networks, since 40% to 45% of metro wireless traffic comes from inside buildings. Postpaid phone additions of 379,000 only met analyst expectations, while fiber and fixed wireless added 442,000 and 327,000 subscribers. AT&T raised its 2026 adjusted EPS outlook to $2.40 from $2.25 to $2.35 and plans to maintain its $1.11-per-share dividend. The author prefers Verizon for its cheaper valuation and higher yield, and says he would be interested in AT&T around $19, or 7.5 times forward earnings estimates.
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