The space company is one step closer to offering mobile connections to smartphones directly from space. The stocks of its competitors, particularly $DTE (+0,98%)
$VZ (+0,51%) and $T (-0,24%) are falling sharply.

The space company SpaceX , with its satellite operator Starlink, is challenging established U.S. mobile carriers such as T-Mobile US and Verizon . SpaceX On Thursday, it agreed to purchase a nationwide portfolio of low-frequency spectrum to offer mobile connections directly from space to smartphones in the future.

The seller of the 800-megahertz frequencies is the private equity firm Grain Management, which is divesting its entire portfolio. Financial details were not disclosed.

With this acquisition, SpaceX, led by the entrepreneur, Elon Musk one of the biggest technical hurdles for satellite-based mobile networks. Low-frequency bands can penetrate obstacles such as walls or trees more effectively. They are intended to complement Starlink Mobile’s existing global 2-gigahertz spectrum, which is designed for high bandwidths. The deal still requires approval from the U.S. Federal Communications Commission (FCC).

The move caused unease on the stock market, as investors fear an aggressive price war in the already saturated U.S. mobile market. Shares of T-Mobile US, Verizon and AT&T fell.

Earlier this week, the FCC also approved the application for Starlink Mobile’s second generation of satellites. This allows SpaceX to launch 15,000 satellites into space that are optimized for the 2-gigahertz spectrum worldwide.

Source: Handelsblatt

$SPCX

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• Elon Musk calls the approval the “last missing piece of the puzzle” for SpaceX’s cellular coverage.

• Following SpaceX’s spectrum purchase, U.S. telecom stocks come under heavy pressure.

• $VZ (+0,51%) Verizon: -5.1%

• $T (-0,24%) AT&T: -5.8%

• $TMUS (+0,44%) T-Mobile US: -5.8%

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Deutsche Telekom $DTE (+0,98%) could come under pressure, particularly due to its majority stake in T-Mobile US. In the long term, Starlink could increase competitive pressure on traditional mobile carriers.

I know AT&T isn’t anyone’s favorite stock. The 2022 dividend cut following the WarnerMedia spin-off left a scar. Many income investors abandoned it and haven’t looked back.

But since then, the story has changed:

🟢 EXCELLENT on DividendQuad | Quality 76, Opportunity 80

• Yield: 4.79%
• P/E: 7.67x
• P/FFO: 4.1x (estimated fair value $56–84 vs. current $23)
• Cash Flow Payout: 20.1% (the dividend is protected)
• FCF Coverage: 2.20x
• Net Debt/EBITDA: 2.7x

The business is no longer the disaster it was 4 years ago. AT&T is now a pure-play telecom company: fiber, 5G, and mobile. The legacy copper business is being phased out. The lead-related lawsuits have been dismissed. The 2024 data breach has been resolved. And the FCC is facilitating the phase-out of copper.

It’s not the most exciting stock in the world. But I’ve been collecting this dividend quarter after quarter for years, and at a P/E of 7.7x with a 4.8% yield covered five times by cash flow, I have no intention of selling it.

$T (-0,24%) Today, the company released its quarterly results for the past quarter.

• EPS (expected): $0.59
• EPS (reported): $0.65

• Revenue (estimated): 31.80B USD
• Revenue (reported): 31.60B USD

Before the quarterly results were released, I had written that, for me, beating estimates on revenue or EPS was less important than the company’s operational performance. I was particularly focused on free cash flow, the growth of mobile and fiber-optic customers, further debt reduction, and any statements regarding capital returns.

Looking back, I believe many of these points were met. The company was able to $T (-0,24%) once again delivered strong results, confirming the company’s growth trajectory.

I view the continued strong free cash flow as particularly positive, as it forms the foundation for investments, further debt reduction, and a sustainably funded dividend. From a dividend perspective, I am particularly pleased that the payout continues to be comfortably covered by operating cash flow.

Equally encouraging is that management has confirmed the full-year forecast and, in addition, announced a share buyback program for 2026. In my view, this shows that $T (-0,24%) the company is increasingly transitioning into a phase in which, in addition to investments, capital returns are once again taking center stage.

Before the earnings release, I had also mentioned Starlink as a potential influencing factor. At least in the short term, however, this issue does not seem to be overshadowing the company’s operating performance. Instead, the market has focused on the solid customer growth, strong cash flow, and confirmed outlook. I can therefore certainly understand the positive market reaction to the results.

In my view, the company is $T (-0,24%) is gradually evolving back into a reliable cash flow and dividend-paying company. For now, however, this does not change my personal position. $T (-0,24%) Despite the positive operational performance over the past few years, the stock price is still trending largely sideways. As mentioned prior to the earnings release, $T (-0,24%) currently among the positions in my portfolio that I’m not expanding at this time and that I regularly review. In my view, today’s figures provide no reason to take action here in the short term. Thus, the position remains unchanged in my portfolio for now.

https://de.investing.com/news/stock-market-news/starker-gewinn-und-kundenwachstum-beflugeln-att-aktie-93CH-3573990

~ Not investment advice ~

On July 22, $T (-0,24%) its quarterly earnings. The current analyst consensus expects:

• EPS: $0.59
• Revenue: 31.81B USD

For me, however, the key metrics for a telecommunications company are primarily the operating figures. I’m particularly interested in the trend in mobile and fiber-optic subscriber numbers, the growth in service revenue, average revenue per user (ARPU), the churn rate, as well as free cash flow and further debt reduction. In my view, free cash flow is the most important indicator, as it forms the basis for dividends, investments, and financial flexibility. Following the last quarter, management continues to stick to its target of over 18 billion USD in free cash flow for the full year. The key question will be whether this target is reaffirmed. At the same time, ARPU and churn provide good insight into whether $T (-0,24%) is growing profitably and can retain its customers over the long term.

Another point I will be closely monitoring is management’s outlook. Competition in the U.S. telecommunications market remains intense, and the topic of satellite-based mobile services—centered on Starlink and AST SpaceMobile—is increasingly coming into focus. In the short term, I personally do not yet expect any significant impact on the figures here, but in the long term, the market is likely to pay close attention to the strategic positioning of $T (-0,24%) .

The return of capital also remains an area of interest. I do not currently anticipate any major changes to the dividend policy or a new share buyback program. Rather, the focus is likely to remain on using the high free cash flow for investments in fiber-optic expansion and further debt reduction.

Analyst sentiment is currently largely positive. Many firms see $T (-0,24%) the company is on the right track following the operational improvements of recent quarters. Historically, stock price reactions following the latest quarterly results have tended to be rather moderate. The decisive factor has often been management’s outlook rather than minor deviations in revenue or EPS. Of course, this does not guarantee how the stock price will react in the future.

Personally, I expect a solid quarter. For me, however, the key factor will be whether $T (-0,24%) the company consistently continues on its current course regarding fiber-optic expansion, cash flow generation, and debt reduction. If it succeeds, I see the investment thesis of a long-term attractive dividend stock as still valid.

Personally, $T (-0,24%) this is currently one of the positions I’m not expanding further. Rather, it’s among the stocks I regularly review and for which I would also consider a possible sale in due course. This makes me all the more eager to see whether the upcoming quarterly results will change my perspective or confirm my current assessment.

~ Not investment advice ~

$DPZ (+1,48%)
$SCHW (-2,45%)
$HAS (-0,44%)
$HAL (+2,01%)
$MMM (-0,51%)
$MSCI (-1,21%)
$IBKR (-2,96%)
$EQNR (+4,14%)
$GEV (-0,98%)
$T (-0,24%)
$PM (+1,8%)
$MCO (-0,12%)
$TXN (-0,48%)
$GOOG (-2,22%)
$NOW (-4,97%)
$IBM (-1,11%)
$QS (-4,77%)
$TSLA (-2,72%)
$IDR (-0,39%)
$NESN (+2,23%)
$UCG (-0,09%)
$RTX (+3,61%)
$NDAQ (+1,15%)
$DOW (+0,64%)
$LMT (+3,31%)
$HON (+0,27%)
$SAP (-0,79%)
$INTC (-5,89%)
$VOW (+2,08%)
$AXP (-0,32%)
$FIX (-3,63%)

$T (-0,24%) has presented its final quarterly figures and was able to exceed expectations in operational terms, while at the same time its debt has continued to rise.

• Sales (expected): 31.25B USD
• Turnover (reported): USD 31.50B

• EPS (expected): USD 0.55
• EPS (reported): 0.57 USD

The operating business in particular deserves special mention. $T (-0,24%) The company once again recorded strong customer growth in the mobile and fiber optic segments, which confirms the strategy around connectivity and bundled offers. Sales growth also shows that the core business is continuing to grow steadily.

On the negative side, however, there was a decline in free cash flow in particular, which was primarily impacted by high investments in network expansion. At the same time, the well-known high level of debt remains a key issue and is further exacerbated by recent acquisitions, which further restricts the financial scope. In addition, structural declines are still evident in parts of the legacy business.

The outlook remains solid overall, but not spectacular. $T (-0,24%) The company continues to focus clearly on the expansion of 5G and fiber optic infrastructure. In the short term, however, the share's performance is likely to depend heavily on whether the company succeeds in stabilizing its cash flow and sustainably reducing its debt.

The bottom line is a familiar picture. Operationally stable with slight growth, but still structural construction sites on the financial side.

Is the operational stability enough for you to invest or do the risks relating to cash flow and debt outweigh the risks?

https://de.investing.com/news/company-news/att-q1-2026-gewinn-ubertrifft-erwartungen-doch-schuldenlast-druckt-auf-die-aktie-93CH-3438810

~No investment advice ~