AT&T Shares Drop 4.4% as Satellite Broadband Threat Looms

AT&T (T) shares fell sharply Wednesday, closing down 4.4% at $23.56 after Oppenheimer analyst Timothy Horan downgraded the telecom giant, citing rising competition from satellite broadband providers. The drop marks the stock's worst single-day performance since October 2025.

Horan's downgrade from Outperform to Perform reflects growing concerns about SpaceX's Starlink and Amazon's Leo disrupting traditional broadband markets. Satellite providers are projected to capture over 2 million subscribers annually, potentially reaching 10% market share by 2030—a threat Horan believes the industry underestimates.

The timing is critical: SpaceX's anticipated public listing next week could accelerate scrutiny of legacy telecom vulnerabilities. With Starlink's pricing now competitive with terrestrial broadband, AT&T faces a structural challenge to its subscriber base.