AT&T Inc. provides telecommunications and technology services worldwide. The company operates through two segments, Communications and Latin America. The Communications segment offers wireless voice and data communications services; and sells handsets, wireless data cards, wireless computing devices, carrying cases/protective covers, and wireless chargers through its own company-owned stores, agents, and third-party retail stores. It also provides Virtual Private Networks, AT&T Dedicated Internet, Ethernet, data services, cloud solutions, outsourcing, and managed professional services, as well as customer premises equipment for multinational corporations, small and mid-sized businesses, governmental, and wholesale customers. In addition, this segment offers broadband services, including fiber connections, legacy telephony voice communication services, and other VoIP services and equipment to residential customers. This segment markets its communications services and products under the AT&T, AT&T Business, Cricket, AT&T PREPAID, and AT&T Fiber brand names. The Latin America segment provides postpaid and prepaid wireless services in Mexico under the AT&T and Unefon brand names, as well as sells smartphones through its owned stores, agents and third-party retail stores. The company was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in 2005. AT&T Inc. was incorporated in 1983 and is based in Dallas, Texas.

AT&T’s fundamental picture appears stable in terms of revenue and margins, but with notable pressure from debt and weakening profitability. The P/E ratio at 12.36 is below the industry median, while P/B and P/FCF also look moderate, which supports the case that the valuation is not too expensive. At the same time, P/S is above the industry median, so in terms of revenue the market is no longer pricing in as much of a discount as it is on earnings and cash flow. The operating margin of 18.3% is above the median and remains strong, while the gross margin of around 59.7% is stable and looks high quality. However, ROE, ROA, and ROI are noticeably below industry benchmarks, and their year-over-year trend has deteriorated, indicating a decline in capital efficiency. Net income and operating income in the latest TTM are significantly weaker than in earlier quarters, so the short-term earnings momentum looks unconvincing. Debt load is elevated: debt/equity of 1.22 is above the median, debt is rising, and liquidity remains weak — the current ratio is below 1 and the quick ratio is also below 1. This means the company’s balance sheet is not a source of strong revaluation, but rather a factor limiting upside. The dividend yield of around 1.23% does not look particularly high for a defensive story and does not fully compensate for debt risks. On the other hand, revenue, EBITDA, and gross profit remain at high levels and do not show signs of a sharp deterioration in the business. Overall, this is more of a story of moderate undervaluation on multiples with weak efficiency momentum and elevated financial leverage. Therefore, it makes sense to slightly lower the target forecast while maintaining a conservative view of the company.

WHEAT-10.26

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IBIT-12.26

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AT&T Inc.

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Сильный индекс, значительно упал. Оптимистичный взгляд на свои позиции резко сменился на неуверенность.

Strong index, significantly down. An optimistic view of his position suddenly changed to uncertainty.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Сильный индекс, без изменений. Рынок на стороне медведей.

Strong index, flat. The market is on the bears' side.

Средний индекс, незначительно вырос. Отток средств из лонгов на высоком уровне.

Medium index, slightly up. Outflow of funds from longs at a high level.

Средний индекс, без изменений. Приток средств в шорты на высоком уровне.

Medium index, flat. Inflow of funds into shorts at a high level.

Cheap on P/E and P/FCF, but with high debt burden, weak liquidity, and deteriorating ROE/ROA; fundamentals justify a modest target reduction.

Key Points
A report that SpaceX wants access to 80,000 U.S. cell sites sent tower stocks soaring and telecom stocks down on Friday.
The last company that tried to become America's fourth wireless carrier ended up fighting its tower landlords in court.
There were some big moves in telecommunications stocks on Friday. On one hand, shares of cell tower owners Crown Castle (NYSE:CCI) and American Tower (NYSE:AMT) soared, with shares up by about 9% and 4%, respectively, as of midday. On the other hand, the three largest wireless carriers plunged, with Verizon (NYSE:VZ), AT&T (NYSE:T), and T-Mobile (NASDAQ:TMUS) all deep in the red.
Both moves are due to one company, SpaceX (NASDAQ:SPCX). On Thursday evening, Bloomberg reported that SpaceX is in talks to secure at least 80,000 cell sites across the United States as it aims to become the fourth nationwide wireless carrier. For context, 80,000 sites would represent about half of all the purpose-built cell towers in the U.S., so it would be a pretty big move.
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This is the second time in October that SpaceX has sent shockwaves through the telecom industry. First, on Oct. 9, SpaceX agreed to buy $8 billion in low-frequency wireless spectrum, and telecom stocks plunged. So, will SpaceX truly boost the tower companies and cost the telecom leaders money?
Why are the tower companies soaring?
First, a little context on how the cell tower business works. The owner builds a tower and then rents space on it to wireless carriers, typically under long-term leases. Next time you drive by a cell tower, take a look at the top. You'll probably see several rings of transmission equipment, and each of those represents a tenant. Since the tower is already standing, adding tenants produces extra revenue with very little additional cost.
Ever since Sprint was acquired by T-Mobile, the tower industry has essentially had three wireless customers. The majority of Crown Castle's rent comes from AT&T, Verizon, and T-Mobile. A well-capitalized fourth player would mean more tenants per tower.
This is also a notable expansion of SpaceX's plans. Although the company has made its telecom network ambitions known for some time, as recently as August, management described its network as small cells mounted on rooftops (not traditional towers). But without getting too technical, the low-band spectrum it bought makes large towers far more useful, so it makes sense to add them to the plan.
Of course, this isn't the first time a "fourth carrier" has emerged. Just a few years ago, Dish Network signed long-term tower leases to build its own 5G network. To make a long story short, Dish's parent company sold most of its spectrum in 2025 and began shutting down the network. Of course, SpaceX is a far more deep-pocketed tenant and could easily afford to build a nationwide network.
Should investors forget about the carriers?
SpaceX is certainly a threat to the big three wireless carriers, but the recent sell-off appears a bit overdone. After all, SpaceX would be starting with no wireless customers at all, it holds less spectrum than any of the others, and its service isn't expected to launch commercially until late 2027. And building a competitive network would be a multiyear process at a minimum.
Let's be clear. SpaceX could certainly pressure the three major wireless carriers over time, but this isn't exactly a death sentence for them either. All have existed in the past with a fourth competitor (Sprint), and pricing power hasn't changed that much since the number dropped to three.
The bottom line
If you're thinking about buying tower owners as a momentum play or telecoms at a discount, it might be a smart idea to be patient. For one thing, although Crown Castle was specifically mentioned as a company SpaceX was in talks with, there isn't a signed contract or any official management acknowledgment yet. And the telecom sell-off may be overdone, as all that is happening right now is that a potential competitor (who would be starting from scratch) is negotiating with landlords.
In a nutshell, the market is pricing in a deal that hasn't happened yet, and the reaction on both the tower owner and wireless carrier side may be a bit overdone. I'm keeping an eye on some of the stocks involved, but I'm waiting for further official developments before making any moves.
Should you buy stock in Space Exploration Technologies right now?
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SpaceX Just Made Cell Towers Cool Again. Verizon, AT&T, and T-Mobile Are Paying the Price

The Elon Musk-operated company is expanding into broader wireless services.
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*Stock prices used were the afternoon prices of Oct. 9, 2026. The video was published on Oct. 11, 2026.
Should you buy stock in AST SpaceMobile right now?
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Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

SpaceX Delivers Unfortunate News for Verizon, ATT, T-Mobile, and AST Space Mobile Stock Investors

The S&P 500 Index ($SPX) (SPY) closed down by -0.02% on Tuesday, the Dow Jones Industrial Average ($DOWI) (DIA) closed down by -0.35%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.31%. December E-mini S&P futures (ESZ26) fell -0.02%, and December E-mini Nasdaq futures (NQZ26) fell -0.32%.
Stock indexes settled lower on Tuesday, with the Nasdaq 100 falling to a 1.5-week low. Weakness in chipmakers weighed on the broader market Tuesday amid concerns that investment in artificial intelligence may be unsustainable due to safety concerns and signs of funding strain. Also, a selloff in South Korea’s Samsung Electronics and SK Hynix knocked South Korea’s Kospi Index down more than -5% on Tuesday to a 2.5-month low amid concerns over intensifying competition from China, adding additional pressure to chip stocks.
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However, stocks recovered from their worst levels on Tuesday as bond yields fell on dovish Fed comments that bolstered speculation the Fed won’t be forced to raise interest rates aggressively. Fed Governor Christopher Waller said the recent surge in long-term bond yields is helping to curb demand in interest-rate-sensitive sectors, such as housing and automobiles, doing some of the Fed's work to tighten monetary policy. Waller’s comments suggest he favors holding policy steady at the FOMC meeting later this month. Also, New York Fed President John Williams said, "It may be appropriate for one more 25 bp Fed rate hike this year, but I don't think at this time I have any reason to believe that we would need to do more."
Hawkish comments on Tuesday from Chicago Fed President Austan Goolsbee limited the decline in T-note yields when he said inflation tied to the AI boom is "jumping out of its lane" and starting to push up prices in unrelated corners of the economy. The 10-year T-note yield fell -3 bp to 5.21%.
Tuesday’s US economic news was supportive for stocks after Sep existing home sales unexpectedly rose +1.5% m/m to 3.99 million, stronger than expectations of a decline to 3.95 million.
Stocks have support from the prospect of solid quarterly earnings results starting this week. Goldman Sachs on Monday raised its three-month view on global equity markets to overweight from neutral, saying. “Earnings growth remains supportive for equities and the recent valuation de-rating has improved asymmetry into the third-quarter earnings season.”
According to data compiled by Bloomberg Intelligence, Q3 S&P 500 profits are expected to climb by +25% from a year earlier, up from a July estimate of 22%. Q3 earnings season begins this week when US money center banks report.
The International Monetary Fund (IMF) raised its 2026 global GDP forecast to 3.1% from 3.0% in July and kept its 2026 global consumer price forecast unchanged from July at 4.7%.
Nov WTI crude oil prices (CLX26) rose slightly on Tuesday amid concerns about Middle East energy-supply disruptions. Saudi Arabia has seen an increase in attacks from Houthi rebels in Yemen in recent days, while Iran has ramped up attacks on shipping in the Strait of Hormuz.
Gains in crude were limited on Tuesday after Saudi Arabia said its Sep crude production rose by +2 million bpd (+40% m/m) to 8.732 million bpd, recovering from a 36-year low in August. Goldman Sachs estimates a $24-a-barrel risk premium in crude oil prices due to the Middle East conflict. However, if Europe releases half the diesel it has announced from reserves, fair value prices could fall by about $11 a barrel.
Markets are discounting a 22% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets settled mixed on Tuesday. The Euro Stoxx 50 closed down -0.55%. China's Shanghai Composite recovered from a 2.5-month low and closed up +0.10%. Japan's Nikkei-225 Stock Average fell to a 1.5-week low and closed down -1.82%.
Interest Rates
December 10-year T-notes (ZNZ6) closed up by +5.5 ticks on Tuesday. The 10-year T-note yield fell -2.5 bp to 5.213%. Dec T-notes rose to a 1-week high on Tuesday, and the 10-year T-note yield fell to a 1-week low of 5.171%. Lower inflation expectations supported gains in T-notes on Tuesday after the 10-year breakeven inflation rate fell to a 1-week low of 2.336%. Dovish Fed comments also supported T-note prices on Tuesday when Fed Governor Christopher Waller said the recent surge in long-term bond yields is doing some of the Fed’s work to tighten monetary policy, suggesting he favors holding policy steady at the FOMC meeting later this month. Also, New York Fed President John Williams said that after the Fed hikes rates one more time this year, he believes the Fed’s rate-hike cycle is done.
T-note gains were limited Tuesday after Chicago Fed President Austan Goolsbee said inflation remains too high. Also, Tuesday’s report showing Sep existing home sales unexpectedly increased weighed on T-notes.
European government bond yields were mixed on Tuesday. The 10-year German bund yield fell to a 1-week low of 3.426% and finished down -0.8 bp to 3.469%. The 10-year UK gilt yield rose +0.7 bp to 5.447%.
Markets are discounting a 12% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Chipmakers and AI-infrastructure stocks retreated for a second session on Tuesday, weighing on the overall market. Applied Materials (AMAT) closed down more than -6% to lead losers in the S&P 500 and Nasdaq 100 after failing to give a detailed outlook at an investor day conference. Also, Micron Technology (MU) and KLA Corp (KLAC) closed down more than -3%, and Lam Research (LRCX) closed down more than -2%. In addition, ASML Holding NV (ASML) and Western Digital (WDC) closed down more than -1%.
Pharmaceutical stocks sold off on Tuesday. Vertex Pharmaceuticals (VRTX) closed down more than -4%, and Merck & Co (MRK), Ionis Pharmaceuticals (IONS), Jazz Pharmaceuticals Plc (JAZZ), and Untragenyx Pharmaceutical (RARE) closed down more than -2%. Also, Gilead Sciences (GILD), Amgen (AMGN), Eli Lilly (LLY), Alnylam Pharmaceuticals (ALNY), and Regeneron Pharmaceuticals (REGN) closed down more than -1%.
Energy producers and service providers rallied on Tuesday as WTI crude prices rose. Valero Energy (VLO) closed up more than +4%, and Marathon Petroleum (MPC) and Phillips 66 (PSX) closed up more than +3%. Also, APA Corp (APA), ConocoPhillips (COP), and Devon Energy (DVN) closed up more than +2%, and Chevron (CVX), Diamondback Energy (FANG), and ExxonMobil Holdings (XOM) closed up more than +1%.
Telecom operators moved higher on Tuesday. Charter Communications (CHTR) closed up more than +4%, and T-Mobile US (TMUS), Comcast (CMCSA), Verizon Communications (VZ), and AT&T (T) closed up more than +1%.
Syndax Pharmaceuticals (SNDX) closed down more than -16% after saying its MAXPIRe Phase 2 trial of its axatilimab to treat idiopathic pulmonary fibrosis failed to meet its primary endpoint.
AST SpaceMobile (ASTS) closed down more than -8% after Piper Sandler downgraded the stock to neutral from overweight.
SentinelOne (S) closed down more than -6% after announcing that it intends to offer $1.25 billion in convertible senior notes due in 2031 via private placement.
Johnson & Johnson (JNJ) closed down more than -5% to lead losers in the Dow Jones Industrials after forecasting full-year sales of $101.00 billion to $101.40 billion, the midpoint below the consensus of $101.24 billion.
Domino’s Pizza (DPZ) closed down more than -5% after reporting Q3 total domestic store comparable sales growth of +0.30%, below the consensus of +0.72%.
Meta Platforms (META) closed up more than +2% to lead gainers in the Nasdaq 100, adding to Monday’s +3% gain, after releasing a new artificial intelligence model called Muse Wonder, which the company claims has “frontier capabilities.”
Ollie’s Bargain Outlet Holdings (OLLI) closed up more than +2% after its Board of Directors approved a $500 million stock buyback plan.
Amer Sports (AS) closed up more than +2% after Jefferies initiated coverage on the stock with a buy recommendation and a price target of $42.
Earnings Reports (10/14/2026)
Bank of America Corp (BAC), Blackrock Inc (BLK), Fastenal Co (FAST), Morgan Stanley (MS), Progressive Corp/The (PGR), State Street Corp (STT).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

Stocks Finish Lower Ahead of Wednesday’s CPI Report

AT&T Inc. T is scheduled to report third-quarter 2026 earnings on Oct. 21, before the opening bell. The Zacks Consensus Estimate for revenues and earnings is pegged at $31.68 billion and 61 cents per share, respectively. The earnings estimate for AT&T for 2026 has decreased 0.43% to $2.33 per share over the past 60 days, while the same for 2027 has decreased 1.17% to $2.54 per share.
Image Source: Zacks Investment Research
Earnings Surprise History
The communications service provider delivered a trailing four-quarter earnings surprise of 6.26%, on average.
Earnings Whispers
Our proven model predicts a likely earnings beat for AT&T for the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is exactly the case here. AT&T currently has an ESP of +3.77% and a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Factors Shaping the Upcoming Results
During the quarter, AT&T introduced AT&T Video Intelligence with EdgeVis Cloud, a managed cloud deployment option that expands its existing IoT Video Intelligence platform. The offering combines optimized video streaming, secure transmission, analytics and alerting with an AT&T-managed cloud backend. It is designed to simplify deployment and reduce infrastructure requirements for enterprise, mid-market, large SMB and public-sector customers. Potential applications include construction sites, transportation corridors, utility operations, logistics yards, retail locations, smart-city pilots and emergency response sites.
In the quarter under review, AT&T announced that Ericsson will provide 600 MHz dual-band radios to support deployment of spectrum acquired from EchoStar. AT&T said the new spectrum and radios will improve network capacity, coverage, reliability and performance, including in indoor and rural locations. The company is more than 60% through its wireless network modernization program. In upgraded areas, customers can see up to 2X higher average speeds, a 10% reduction in dropped and blocked calls, and up to a 70% reduction in slower data speeds.
AT&T and Corning also inked a multi-year agreement worth more than $3 billion, under which Corning will supply the fiber-optic cables. The materials will enable AT&T to expand its high-speed internet network across the United States.
However, AT&T continues to face intense competition in the U.S. telecom market from Verizon Communications, Inc. VZ and T-Mobile, US, Inc. TMUS. This could impact subscriber growth and impact revenue.
Over the past year, AT&T has declined 13.3% against the industry’s growth of 122.7%, outperforming its peers like T-Mobile but underperforming Verizon. T-Mobile has declined 34%, while Verizon has improved 4.8% during this period.
Key Valuation Metric
From a valuation standpoint, AT&T appears to be trading relatively cheaper than the industry and below its mean. Going by the price/earnings ratio, the company shares currently trade at 8.89 forward earnings, lower than 36.25 for the industry and the stock’s mean of 10.74.
Image Source: Zacks Investment Research
Investment Considerations
T continues to benefit from its fiber-led growth strategy and efforts to increase customer adoption of bundled connectivity services. AT&T had expanded its fiber footprint to 38.6 million locations by the end of the second quarter and aims to exceed 40 million locations by year-end 2026. Continued fiber deployment and the integration of Lumen’s acquired mass-market fiber customer base could support broadband growth. This may also encourage more households to purchase wireless and Internet services together. Its bundled offerings is improving customer retention and strengthen long-term revenue visibility.
However, intense competition in the U.S. wireless market remains a challenge for AT&T. Although wireless service revenues increased 3.3% year over year in the second quarter, promotional discounts partially offset the benefits of pricing actions. Persistent competition from major telecom operators could require continued spending on customer acquisition and retention, limiting revenue gains per subscriber.
End Note
AT&T continues to invest in fiber and fixed wireless to expand advanced Internet reach and deepen household convergence with wireless. Focus on 5G network upgradation worldwide will likely bring long term benefits. Strategy of bundled product offerings by combining wireless and broadband is driving retention. However, However, aggressive competition in wireless services, declining legacy revenues and substantial capital requirements remain key challenges. AT&T’s balance sheet remains leveraged while investment, spectrum needs and shareholder returns compete for cash. With a Zacks Rank #3 (Hold), AT&T presents a balanced outlook ahead of its third-quarter earnings report, making execution on its fiber-led growth strategy and cash flow targets important factors for investors to monitor.
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Does T Stock Deserve a Spot in Your Portfolio Ahead of Q3 Earnings?

Key Points
AST is getting ready to launch three more BlueBird satellites, but it’s still far from its near-term target of 45 to 60 satellites.
It needs to reach at least 45 satellites to start generating commercial revenue.
AST SpaceMobile (NASDAQ: ASTS), a developer of low Earth orbit (LEO) satellites, has successfully launched 13 of its BlueBird satellites to date. These satellites, which are much bigger than SpaceX's (NASDAQ: SPCX) Starlink satellites, help telecom giants like AT&T (NYSE: T) and Verizon (NYSE: VZ) expand their cellular networks to remote areas that their terrestrial towers can't reach. AST is already working with over 60 carriers to reach more than 3 billion wireless subscribers worldwide, so it clearly has plenty of room to grow.
However, AST doesn't generate any recurring commercial revenue yet. Instead, it generates all of its revenue from government contracts and prepayments from its telecom partners.
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For AST SpaceMobile to deliver stable cellular connections and generate recurring commercial revenue, it must expand its constellation to at least 45 satellites. It had planned to reach that milestone by late 2026. But in mid-July, it pushed back that target to early 2027.
AST just delivered its next three BlueBird satellites (14, 15, and 16) to Cape Canaveral, but it's unclear when it will launch them. It's also continuing the production of its future satellites through BlueBird 50. Should you invest in AST before its commercial business finally blasts off?
What could happen to AST SpaceMobile over the next few years?
From 2025 to 2028, analysts expect AST SpaceMobile's revenue to surge from $71 million to $1.73 billion as it begins providing direct-to-cell services to AT&T and Verizon. They also expect its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to turn positive in 2027 and soar nearly 17 times to $1.25 billion in 2028. That growth should be driven by the gradual expansion of its constellation toward its long-term goal of 248 satellites.
With an enterprise value of $17.2 billion, AST's stock trades at 15 times its projected 2028 adjusted EBITDA. That valuation looks reasonable relative to its growth potential, but three unpredictable headwinds are driving away the bulls and compressing its valuations.
First, Starlink's recent acquisition of T-Mobile's (NASDAQ: TMUS) 800 MHz spectrum will position it as a major competitor for AT&T and Verizon in the wireless market. To keep up, AT&T and Verizon will likely need to ramp up their spending on AST's satellite services. However, AST could struggle to expand its constellation fast enough to meet that demand.
Second, AST is completely dependent on third-party launch partners -- including SpaceX and Blue Origin -- to carry its satellites into orbit. Therefore, AST has much less control over its own launch schedule than SpaceX, which launches its Starlink satellites with its own rockets.
Lastly, AST will continue to issue more debt and shares to support its capital-intensive expansion. It ended its latest quarter with $2.96 billion in long-term debt, and its share count has increased by 479% since it closed its SPAC merger on April 6, 2021. If the Fed continues to raise its benchmark rates, its borrowing costs and interest payments could skyrocket.
Is it the right time to buy AST SpaceMobile's stock?
AST SpaceMobile has plenty of growth potential, but it will struggle to attract new investors as long as interest rates are rising. SpaceX also stands out as a more diverse and vertically integrated player in the space logistics, satellite internet services, and AI markets.
That's why AST's stock has declined more than 40% over the past 12 months, and why it could sink even lower before it's considered a bargain. AST might deserve a closer look if it successfully expands its constellation to 45 satellites next year. Still, investors should assess how much that expansion increases its debt and dilutes existing shares before pulling the trigger.
Should you buy stock in AST SpaceMobile right now?
Before you buy stock in AST SpaceMobile, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AST SpaceMobile wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
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Leo Sun has positions in Verizon Communications. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy.

AST SpaceMobile Shipped 3 More BlueBird Satellites to Cape Canaveral. Here's How Many It Needs in Orbit Before Revenue Shows Up.

Key Points
AST generates all of its revenue from defense contracts and commercial prepayments rather than continuous commercial contracts.
That could change next year when its constellation grows to 45 satellites.
AST SpaceMobile (NASDAQ: ASTS) is a tough stock to value. The developer of low Earth orbit (LEO) satellites has a market cap of $15.3 billion, which is 90.5 times its expected 2026 revenue. It had more than $3.7 billion in total liquidity at the end of June, but it doesn't generate any revenue from its commercial contracts.
So how should investors value AST SpaceMobile?
AST SpaceMobile's BlueBird satellites provide broadband cellular connections for government and commercial customers. It's successfully launched 13 of those satellites so far.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
AST SpaceMobile currently generates all of its revenue from government and defense contracts, as well as prepayments from AT&T, Verizon, and other telecom companies, rather than from its commercial satellite operations.
But next year, AST plans to expand its constellation to 45 satellites, enabling it to provide continuous direct-to-cell broadband coverage for its telecom customers. It's already working with over 60 carriers to reach more than 3 billion wireless subscribers, and it plans to eventually expand its constellation to more than 248 satellites to convert its backlog -- which reached $1.3 billion in its latest quarter -- into actual revenue.
If AST achieves those goals, analysts expect its revenue to surge more than tenfold from $169 million in 2026 to $1.73 billion in 2028. So, rather than valuing AST based on its near-term revenue, investors should value it for the future growth of its satellite constellation.
Should you buy stock in AST SpaceMobile right now?
Before you buy stock in AST SpaceMobile, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AST SpaceMobile wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,123!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,408,822!*
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Leo Sun has positions in Verizon Communications. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.

AST SpaceMobile Has $3.7 Billion in Liquidity and No Commercial Revenue. Here's How to Value That.

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in AT&T Inc (Symbol: T), where a total volume of 234,259 contracts has been traded thus far today, a contract volume which is representative of approximately 23.4 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 61.4% of T's average daily trading volume over the past month, of 38.1 million shares. Especially high volume was seen for the $23 strike call option expiring October 09, 2026, with 13,720 contracts trading so far today, representing approximately 1.4 million underlying shares of T. Below is a chart showing T's trailing twelve month trading history, with the $23 strike highlighted in orange:
Penske Automotive Group Inc (Symbol: PAG) saw options trading volume of 2,741 contracts, representing approximately 274,100 underlying shares or approximately 60.7% of PAG's average daily trading volume over the past month, of 451,830 shares. Particularly high volume was seen for the $150 strike put option expiring November 20, 2026, with 2,578 contracts trading so far today, representing approximately 257,800 underlying shares of PAG. Below is a chart showing PAG's trailing twelve month trading history, with the $150 strike highlighted in orange:
And RUM Group Inc (Symbol: RUM) options are showing a volume of 36,711 contracts thus far today. That number of contracts represents approximately 3.7 million underlying shares, working out to a sizeable 59% of RUM's average daily trading volume over the past month, of 6.2 million shares. Especially high volume was seen for the $8 strike call option expiring October 16, 2026, with 11,674 contracts trading so far today, representing approximately 1.2 million underlying shares of RUM. Below is a chart showing RUM's trailing twelve month trading history, with the $8 strike highlighted in orange:
For the various different available expirations for T options, PAG options, or RUM options, visit StockOptionsChannel.com.
Further T Research:

Notable Friday Option Activity: T, PAG, RUM

The S&P 500 Index ($SPX) (SPY) is up by +0.26% today, the Dow Jones Industrial Average ($DOWI) (DIA) is up by +0.21%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.31%. December E-mini S&P futures (ESZ26) are up +0.20%, and December E-mini Nasdaq futures (NQZ26) are up +0.16%.
Stock indexes are moving higher today, supported by lower crude oil prices. WTI crude oil is down nearly -1% today as Middle East tensions eased after President Trump said the US would not attack Iran before the midterm elections.
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Also, concerns about slowing demand for AI-infrastructure stocks eased today after people familiar with the matter said OpenAI is expecting to reach or exceed $70 billion in annualized revenue by the end of the year, refuting a report from the Financial Times on Thursday that said OpenAI is on track to generate annualized revenue of roughly $50 billion based on its current performance.
Earnings optimism is a bullish factor for stock prices. According to data compiled by Bloomberg Intelligence, Q3 S&P 500 profits are expected to climb by +25% from a year earlier, up from a July estimate of 22%. Q3 earnings season begins next week when US money center banks report.
Nov WTI crude oil prices (CLX26) are down nearly -1% today after President Trump said the US would not attack Iran ahead of next month’s midterm elections, citing “productive discussions” with Iran. Losses in crude may be limited today as signs point to lower US crude output and threats to refining capacity. Roughly 1.28 million bpd of crude output, or 63% of US Gulf crude production, has been shut in, and Hurricane Isaias is expected to make landfall along the Gulf Coast later today or tomorrow, threatening 500,000 bpd of refining capacity. Also, due to Iranian attacks on shipping in the Strait of Hormuz, the cost to ship oil out of the Middle East is soaring, with freight rates from the Middle East to China jumping to $1.4 million a day, the most on record.
Markets are discounting a 19% chance of a +25 bp Fed rate hike at the next FOMC meeting on October 27-28.
Overseas stock markets are mixed today. The Euro Stoxx 50 is up +1.18%. China's Shanghai Composite recovered from a 2.5-month low and closed up +0.05%. Japan's Nikkei-225 Stock Average closed down -0.02%.
Interest Rates
December 10-year T-notes (ZNZ6) are down by -7 ticks today. The 10-year T-note yield is up +3.0 bp to 5.257%. T-notes are under pressure today from stronger stocks, which curbs safe-haven demand for government debt. T-note losses are limited today, with WTI crude oil prices down nearly -1%, easing inflation expectations.
European government bond yields are moving lower today. The 10-year German bund yield is down -2.6 bp to 3.469%. The 10-year UK gilt yield is down -5.2 bp to 5.429%.
Italy's Aug industrial production fell -1.3% m/m, weaker than expectations of no change and the biggest decline in a year.
Markets are discounting a 11% chance of a +25 bp ECB rate hike at the ECB’s next meeting on October 29.
US Stock Movers
Optical-equipment makers are rallying today after Lumentum Holdings said its components are “completely sold out” through 2029 on high demand from tech companies clamoring for faster AI data centers. Applied Optoelectronics (AAOI) is up more than +9%, and Coherent (COHR) is up more than +8%. Also, Lumentum Holdings (LITE) is up more than +6% to lead gainers in the Nasdaq 100, and Fabrinet (FN) is up more than +3%.
Tower companies are gaining today after SpaceX said it had agreed to acquire a nationwide low-band spectrum license portfolio in a deal analysts say is a positive catalyst for the sector. Crown Castle (CCI) is up more than +11%, and American Tower (AMT) and SBA Communications (SBAC) are up more than -7%.
Humana (HUM) is up more than +14% to lead gainers in the S&P 500 and health insurance stocks higher after data from the Centers for Medicare and Medicaid Services showed improved ratings for the company’s Medicare Advantage contract, allowing it to earn bonus payments. Also, UnitedHealth Group (UNH) is up more than +3% to lead gainers in the Dow Jones Industrials, and Elevance Health (ELV) and Centene (CNC) are up more than +2%. In addition, Molina Healthcare (MOH), and the Cigna Group (CI) are up more than +1%.
Telecom stocks are retreating today after SpaceX said it had agreed to acquire a nationwide low-band spectrum license portfolio, which will increase competition from satellite operators. T-Mobile US (TMUS) is down more than -9% to lead losers in the S&P 500 and Nasdaq 100. Also, AT&T (T) is down more than -7%, and Verizon Communications (VZ) is down more than -6%. In addition, Charter Communications (CHTR) is down more than -3%, and Comcast (CMCSA) is down more than -1%.
Delta Air Lines (DAL) is down more than -3% to lead airline stocks lower after cutting its full-year adjusted EPS forecast to $5.10 to $5.60 from a previous estimate of $6.50 to $7.50, the midpoint below the consensus of $5.44. Also, American Airlines Group (AAL), United Airlines Holdings (UAL), and Alaska Air Group (ALK) are down more than -2%, and Southwest Airlines (LUV) is down more than -1%.
Fastly (FSLY) is up more than +6% after Oppenheimer upgraded the stock to outperform from perform, with a price target of $35.
Cboe Global Markets (CBOE) is up more than +3% after Morgan Stanley double-upgraded the stock to overweight from underweight, with a price target of $358.
Apple (AAPL) is down more than -2% to lead losers in the Dow Jones Industrials after cutting component orders for the iPhone 18 Pro and iPhone 18 Pro Max following weaker-than-expected demand. Skyworks Solutions (SWKS), a supplier of Apple, also dropped -6% on the news.
Earnings Reports (10/9/2026)
Delta Air Lines Inc (DAL), Hingham Institution For Savings (HIFS), Nurix Therapeutics Inc (NRIX).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart

Stocks Push Higher as Crude Oil Prices Ease

Key Points
IonQ's reliability and partnership with Nvidia may make it a good investment.
D-Wave's success at finding real-world applications for quantum technology could make it a compelling choice.
Quantum computing has gained increasing attention in recent years. Amid the technology's potential for exponentially faster computing, companies like Alphabet, IBM, and Nvidia have taken an interest in it.
Additionally, many smaller, pure-play quantum computing stocks have emerged, and two of the more prominent ones are IonQ (NYSE: IONQ) and D-Wave Quantum (NASDAQ: QBTS).
Missed AI’s "Act 1"? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn't buy Nvidia in 2005. But according to our analysts, we’re only at the end of "Act 1"—the R&D phase. "Act 2" is the global rollout. Continue »
Although these stocks carry significant risks, their smaller sizes also offer greater potential for higher returns should they succeed. Thus, it is worth asking which of these stocks might be the better stock to buy.
The case for IonQ
One limitation of quantum computing is that the technology is often error-prone. This means any company that can minimize that problem has a better chance of success, and IonQ may have the solution with its trapped-ion quantum system.
Last year, IonQ demonstrated 2-qubit gate fidelities of 99.99%. This technology unlocked more complex applications that could now be performed with minimal error rates. While that does not make it faster than its big-tech counterparts, it performs tasks with industry-leading precision.
Furthermore, the company, often called the "Nvidia of quantum," has formed a partnership with that company. Under the terms of the agreement, Nvidia will install the IonQ Superion 256 system at the Nvidia Accelerated Quantum Research Center. This will tie IonQ into Nvidia's ecosystem, which could give it a competitive advantage.
Unfortunately, such gains may not yet provide sufficient support for its financials. Its $145 million in revenue in the first half of 2026 was well above the $28 million in the same period a year ago, indicating it is growing faster than Nvidia. However, high operating expenses led to a $1.06 billion operating loss in the first two quarters of 2026, well above the $210 million loss from the same time frame last year.
Moreover, IonQ stock is down by more than one-third over the last year. Despite that decline, it still has a price-to-sales (P/S) ratio of around 65, an indication that the company's fundamentals have little bearing on the stock price. Such a valuation makes it extremely difficult to forecast IonQ's near-term direction at this time.
Why investors might consider D-Wave Quantum
Nonetheless, investors might also find challenges amid the potential in D-Wave Quantum. In an industry where some have predicted commercial viability is years away, Leap's quantum cloud service already runs customer applications.
Additionally, it has become a leader in optimization, as its quantum annealing technology helps find solutions while analyzing millions of variables. For example, AT&T cut a one-hour task down to less than 15 seconds using this application.
Thus, it is likely not surprising that companies use its technology to retrain AI models, generate molecular structures, and lower energy consumption.
However, much like with IonQ, D-Wave Quantum is far from profitability. In the first half of 2026, revenue of $5.9 million fell 67% year over year, though a large system sale in early 2025 skewed these results. Also, high operating expenses led to a $66 million loss for the same period.
Amid that financial performance, the stock dropped by almost 40% over the last year. Furthermore, at a P/S ratio of approximately 475, the stock's valuation factors in several years of anticipated revenue gains, making the stock a risky buy at this time.
Should investors buy IonQ or D-Wave Quantum?
As conditions stand now, both stocks face deep uncertainty in the foreseeable future, and risk-averse investors should probably avoid both of them. Nonetheless, if choosing one, I recommend IonQ.
Although D-Wave's success at applying the technology now is noteworthy, one cannot deny IonQ's built-in credibility that comes with its Nvidia partnership.
Moreover, while both are too expensive, it is less risky to pay around 65 times sales than it is to buy at a P/S ratio of around 475. Thus, amid significant uncertainty, IonQ looks like the safer buy that offers a higher probability of success.
Should you buy stock in IonQ right now?
Before you buy stock in IonQ, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $375,240!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,403,292!*
Now, it’s worth noting Stock Advisor’s total average return is 932% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 1, 2026.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, International Business Machines, IonQ, and Nvidia. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Better Quantum Computing Stock: IonQ vs. D-Wave

The NASDAQ 100 After Hours Indicator is up 60.57 to 30,469.07. The total After hours volume is currently 230,327,767 shares traded.
The following are the most active stocks for the after hours session:
NVIDIA Corporation (NVDA) is +0.31 at $228.69, with 12,851,930 shares traded. As reported by Zacks, the current mean recommendation for NVDA is in the "buy range".
Exelon Corporation (EXC) is unchanged at $40.40, with 6,232,092 shares traded., following a 52-week high recorded in today's regular session.
AT&T Inc. (T) is +0.049 at $24.45, with 6,083,108 shares traded. As reported by Zacks, the current mean recommendation for T is in the "buy range".
Warner Bros. Discovery, Inc. (WBD) is -0.01 at $30.94, with 5,211,459 shares traded. WBD's current last sale is 99.81% of the target price of $31.
Apple Inc. (AAPL) is +0.24 at $333.26, with 4,646,189 shares traded. AAPL's current last sale is 99.48% of the target price of $335.
Amazon.com, Inc. (AMZN) is +0.3 at $249.45, with 4,144,296 shares traded. As reported by Zacks, the current mean recommendation for AMZN is in the "buy range".
Alphabet Inc. (GOOGL) is +4.9201 at $349.00, with 4,095,616 shares traded. As reported by Zacks, the current mean recommendation for GOOGL is in the "buy range".
AH Realty Trust, Inc. (AHRT) is +0.01 at $6.11, with 3,019,629 shares traded. AHRT's current last sale is 81.47% of the target price of $7.5.
Bank of America Corporation (BAC) is +0.0555 at $54.49, with 2,985,949 shares traded. As reported by Zacks, the current mean recommendation for BAC is in the "buy range".
Dow Inc. (DOW) is -0.2346 at $27.31, with 2,679,169 shares traded. DOW's current last sale is 78.02% of the target price of $35.
Ford Motor Company (F) is -0.008 at $12.05, with 2,666,766 shares traded. F's current last sale is 80.35% of the target price of $15.
PG&E Corp (PCG) is -0.03 at $12.22, with 2,562,596 shares traded., following a 52-week high recorded in today's regular session.

AT&T Inc.

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