Verizon Drops 7%, AT&T Hits 52-Week Low as Starlink Threat Rattles Telecom

Telecom stocks came under heavy pressure this week, with Verizon falling about 7% and AT&T touching a 52-week low as investors weighed growing competition from SpaceX's Starlink and converging cable rivals. AT&T closed near $21.43 on Tuesday and is down roughly 20% over the past year.

Analyst sentiment has soured. Bernstein cut price targets across the sector citing Starlink's competitive threat, Barclays lowered its AT&T target to $24 from $26, and Wells Fargo initiated coverage of AT&T at Underweight. CNBC's Jim Cramer added to the gloom, saying he doesn't want to own either AT&T or Verizon.

The next test comes quickly: AT&T reports second-quarter earnings on July 22, where investors will look for subscriber trends and any response to the satellite broadband threat. In recent spectrum Auction 113, Verizon spent $3.2 billion on 82 licenses while AT&T added 13 licenses for $133 million.