AT&T shares ended the abbreviated trading week at $22.01 on Thursday, slipping 1.92% and approaching their 52-week low. The stock hit an intraday low of $21.99, matching the bottom of its yearly range, with volume exceeding 94 million shares. This decline came despite a broader market rally, as the S&P 500 rose 1.08% and the Nasdaq jumped 1.91% on the same day.
U.S. markets were closed Friday for Juneteenth, pushing the next trading session to Monday. The timing adds weight to Thursday's move, as investors now face a longer gap before the next opportunity to react. AT&T's underperformance against the broader indices underscores lingering concerns around regulatory and competitive headwinds.
California's Copper-Wire Challenge
A key overhang for the company is the ongoing dispute with California regulators. The California Public Utilities Commission has urged a U.S. court and the Federal Communications Commission to reject AT&T's request to halt copper-wire phone service for new customers. The conflict centers on "carrier of last resort" rules, which mandate basic service availability. AT&T argues it spends roughly $1 billion annually to maintain the legacy copper network, which now serves only 3% of homes in its California footprint.
This regulatory pushback directly impacts AT&T's strategic narrative, which emphasizes fiber, 5G, and cash returns. Delays in retiring copper could lock up capital and management focus in a segment the company aims to wind down, while regulators stress that vulnerable customers still rely on copper as a backup.
CFO Transition and Competitive Landscape
AT&T announced a leadership change this week, with CFO Pascal Desroches planning to retire at the end of 2026. Jennifer Biry, a company veteran and former WarnerMedia CFO, will take over at the start of 2027. The transition is significant for shareholders, as the new finance chief will navigate trade-offs between debt reduction, dividend sustainability, and network investment.
Competition remains fierce. Verizon recently unveiled simpler plans, cut activation and upgrade fees, and launched a new loyalty program, intensifying pressure in the crowded U.S. wireless market. AT&T is betting on convergence—bundling wireless and broadband—and a massive fiber rollout. Speaking at a Mizuho event, Desroches described fiber as AT&T's primary broadband play, noting that customers using both fiber and wireless exhibit lower churn rates.
Upcoming Earnings and Key Metrics
AT&T's next major financial report is scheduled for July 22, before the NYSE opens, with an earnings call at 8:30 a.m. ET. The company has guided for second-quarter free cash flow between $4.0 billion and $4.5 billion, along with stronger year-over-year growth in wireless service revenue and adjusted EBITDA.
However, risks remain. Delays in copper retirement could push out cost savings, while aggressive discounting by Verizon and T-Mobile may squeeze margins. If subscriber numbers fall short of expectations, even at the current low share price, buyers may hesitate to return.
As AT&T heads into Monday trading at $22, the key question is whether investors view this level as a bargain or a warning sign. The broader market showed strength after Thursday's rally, but AT&T still faces a thicket of uncertainties.
