Overview
- Oppenheimer cut AT&T to a Perform rating and removed its $32 price target in a research note that hit markets on Wednesday, June 3, and the stock fell about 4.4% that day.
- The analyst cited growing competition from SpaceX’s Starlink and Amazon’s Leo and projected LEO operators could add more than 2 million subscribers per year and reach roughly 10% of the fixed‑broadband market by 2030.
- Market attention is intensifying because SpaceX is expected to go public next week, which analysts say will make Starlink’s costs and growth plans more visible to investors.
- AT&T is pressing ahead with a stated $250 billion, five‑year fiber and 5G investment plan and CEO John Stankey has said satellite is not a direct substitute for fiber, but analysts warn the plan’s returns could be strained if satellite pricing and capacity keep improving.
- If satellites win share, consumers could see more broadband choices and incumbents could face slower subscriber growth, lower average revenue per user, and tighter free cash flow that would affect future investment and returns.