AT&T Stock Rallies After Strong Q2 Earnings Amid Sector Volatility
Since the start of July, AT&T (T) has experienced a significant stock rally following concerns over SpaceX's public listing disrupting the telecom sector. While AT&T initially dropped more than 12% in June due to these fears, it rebounded with an 18% gain as SpaceX shares fell by nearly one-third during the same period. In its recent Q2 earnings report, AT&T delivered solid results: revenue rose over 2%, and diluted per-share earnings increased from $0.62 to $0.66 year-over-year. The company also added a strong number of new customers in both advanced connectivity internet (646,000 net adds) and postpaid phone services (432,000 net adds), signaling continued growth. With its stock now near pre-June levels and trading at 10 times estimated future earnings, AT&T appears attractively valued. Its high dividend yield of 4.6% further enhances appeal for long-term investors.
Topics: market_reaction stock_performance telecom