AT&T (NYSE:T), a nationwide wireless and broadband carrier, closed at $23.04, up 3.50%. Earnings and subscriber growth data beat estimates, even as revenue missed expectations.
Trading volume reached 177.6 million shares, coming in about triple its three-month average of 57.9 million shares.
How the markets moved today
The S&P 500 (SNPINDEX:^GSPC) fell 0.13% to 7,499, while the Nasdaq Composite (NASDAQINDEX:^IXIC) declined 0.57% to 25,691. Among U.S. wireless telecommunications services peers, Verizon Communications (NYSE:VZ) rose 1.16% to $44.29, while T-Mobile US (NASDAQ:TMUS) was little changed, edging down 0.09% to $190.94.
What this means for investors
Investors cheered AT&T’s results despite a slight revenue miss. More important was strong subscriber growth, especially as investors eyed the upcoming initial quarterly report from Space Exploration Technologies (NASDAQ:SPCX).
SpaceX’s Starlink service could be a big disruptor for the existing wireless market, but today’s results indicate AT&T isn’t seeing it yet. Investors should continue to watch how space-based broadband develops, though. SpaceX isn’t the only player in the game. AST SpaceMobile (NASDAQ:ASTS) is also building a satellite network to provide broadband directly to smartphones anywhere on Earth.
For now, the focus was on AT&T’s continued growth. The company gained 432,000 postpaid phone net subscribers during the quarter, surpassing Wall Street’s expectations of 338,500 additions.
With competition coming from satellite-based solutions, though, AT&T investors should closely follow what SpaceX says about its existing Starlink business when it reports earnings on Aug. 4.
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