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Why the stock is wobbling
AT&T is having one of those days where the chart looks like it tripped over its own shoelaces. Shares were down 3.82% to $22.65 in afternoon trading after Oppenheimer downgraded the stock to Perform from Outperform, pointing to rising competitive risk from low-Earth-orbit satellite providers.
That matters because this isn’t just some abstract industry chatter. If satellite internet keeps stealing the spotlight, it could slow broadband subscriber growth — and once broadband starts leaking, the mobile story can get a little less shiny too. Basically, the market is asking whether AT&T’s moat is still a moat or just a decorative ditch.
AT&T’s trying to make fiber look friendlier
At the same time, AT&T is simplifying its home internet pricing starting June 7, with four fiber tiers — 300 Mbps, 500 Mbps, 1 GIG, and 5 GIG — and bundle savings advertised at up to $420 a year. Bundled fiber starts at $35 a month, which is the kind of number companies love to put on billboards because it sounds friendly enough to make your credit card nervous.
The move is clearly aimed at making the offer easier to understand and easier to buy. But when a downgrade lands on the same day, the market tends to treat the new pricing plan like a nice side salad next to the main course: competitive pressure.
The tape says “show me”
AT&T is also looking technically rough, trading below its major moving averages and stuck in an oversold rut. That doesn’t guarantee a bounce, but it does mean the stock may need a real catalyst — not just a prettier pricing menu — to get back in the market’s good graces.
Big picture: AT&T is still trying to prove that its fiber and wireless machine can hold up in a world where competition keeps finding new ways to crash the party.