AT&T shares drop 6.8% after SpaceX buys $8B spectrum

Shares of AT&T fell 6.8% in pre-market trading on Friday, October 9, 2026, after SpaceX reached a definitive deal to buy Grain Management's nationwide 800 MHz spectrum portfolio for an estimated $8 billion. The transaction covers 100% of Grain's nationwide licenses and provides up to 14 MHz of paired low-band spectrum, subject to approval from the Federal Communications Commission.

SpaceX Chief Executive Elon Musk stated on X that the frequencies represent the last critical piece needed to deliver nationwide mobile coverage, since existing smartphones already support the 800 MHz band. Morgan Stanley analysts noted that the transaction positions SpaceX as an aggressive spectrum buyer, with competitive pressure likely emerging gradually in rural regions rather than urban areas. Bernstein analyst Madison Rezaei calculated that constructing a terrestrial network across tens of thousands of cell towers would still cost between $50 billion and $130 billion.

AT&T uses postpaid wireless contracts and fiber bundles to finance capital spending and reduce balance-sheet debt. While satellite networks cannot match urban wireless capacity, a direct-to-device network could challenge rural pricing power. Over the past year, AT&T has registered only two share price swings larger than 5%, including a 5.6% jump eight months earlier after fourth-quarter 2025 revenue reached $33.47 billion, up 3.6% year over year, and GAAP earnings touched $0.53 per share against a $0.46 forecast.

The stock has declined 6.6% year to date. Trading at $22.95 per share, AT&T is 21.1% below its 52-week peak of $29.10 reached in March 2026. A $1,000 investment in the company made five years ago is currently valued at $881.48.