TLDR:
- AT&T stock has returned -4.5% over the past month, underperforming the S&P 500
- Earnings estimates for AT&T have been revised downward for 2024 and 2025
- AST SpaceMobile is partnering with major carriers like AT&T to provide satellite-to-phone connectivity
- AT&T gained 48.3% over the past year, outperforming the industry average
- AT&T aims to deploy Open RAN for 70% of its wireless network traffic by late 2026
AT&T, one of the largest telecommunications companies in the United States, has been experiencing mixed stock performance as it continues to invest heavily in 5G technology and explore new avenues for connectivity. The company’s stock has seen significant fluctuations over the past year, with both positive and negative trends emerging.
Over the past month, shares of the telecommunications giant have returned -4.5%, while the S&P 500 composite has gained 4.3%. This recent dip comes despite the Wireless National industry, to which AT&T belongs, gaining 1.3% during the same period.

However, looking at a longer timeframe paints a more positive picture. AT&T’s stock has surged 48.3% over the past year, outperforming the industry average of 44.5%. This growth can be attributed to the company’s ongoing investments in 5G infrastructure and its strategic partnerships in the evolving telecommunications landscape.
One of the key factors influencing AT&T’s stock performance is its earnings outlook. For the current quarter, AT&T is expected to post earnings of $0.59 per share, indicating a 7.8% decrease from the year-ago quarter.
The consensus earnings estimate for the current fiscal year stands at $2.22, representing a 7.9% year-over-year decline. These downward revisions in earnings estimates have likely contributed to the recent stock price weakness.
Despite these short-term challenges, AT&T continues to focus on long-term growth strategies. The company is heavily investing in its 5G network, which is seen as a key driver for future revenue growth.
AT&T was the first carrier in the industry to unveil its 5G policy framework, which focuses on mobile 5G, fixed wireless, and edge computing. The acquisition of mid-band spectrum (C-Band) is expected to enhance coverage in both urban and rural areas.
AT&T is exploring innovative connectivity solutions. The company has partnered with AST SpaceMobile, a company developing a space-based cellular broadband network.
This collaboration aims to provide satellite-to-phone connectivity, potentially eliminating cellular dead zones and expanding coverage to remote areas. AT&T has entered into a definitive commercial agreement with AST SpaceMobile, extending until 2030, to integrate this technology with its mobile network.
AT&T is also making strides in fiber optic deployment. The company added 239,000 fiber customers during the second quarter of 2024 and remains on track to surpass 30 million fiber locations by the end of 2025. This expansion is expected to improve broadband connectivity for both enterprise and consumer markets.
Another significant development is AT&T’s commitment to open radio access network (Open RAN) technology. The company aims to deploy Open RAN for 70% of its wireless network traffic by late 2026. This move is expected to reduce dependency on single manufacturers, lower costs, and enhance network flexibility.
While these investments position AT&T for future growth, they also come with short-term financial pressures. The company has offered a muted outlook for 2024, expecting adjusted earnings between $2.15 and $2.25 per share, as high investments in infrastructure upgrades weigh on margins.
AT&T also faces challenges in its wireline division, with declining legacy services and competitive pressures from voice-over-Internet protocol service providers and cable companies. These factors contribute to margin pressures as AT&T offers discounts and incentives to retain and attract customers.
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