Stock Market Today, July 22: AT&T Beats Earnings on Strong Wireless Subscriber Growth

AT&T (NYSE:T), a nationwide wireless and broadband carrier, closed at $23.04, up 3.50%. Earnings and subscriber growth data beat estimates, even as revenue missed expectations.
Trading volume reached 177.6 million shares, coming in about triple its three-month average of 57.9 million shares.

How the markets moved today

The S&P 500 (SNPINDEX:^GSPC) fell 0.13% to 7,499, while the Nasdaq Composite (NASDAQINDEX:^IXIC) declined 0.57% to 25,691. Among U.S. wireless telecommunications services peers, Verizon Communications (NYSE:VZ) rose 1.16% to $44.29, while T-Mobile US (NASDAQ:TMUS) was little changed, edging down 0.09% to $190.94.

What this means for investors

Investors cheered AT&T’s results despite a slight revenue miss. More important was strong subscriber growth, especially as investors eyed the upcoming initial quarterly report from Space Exploration Technologies (NASDAQ:SPCX).

SpaceX’s Starlink service could be a big disruptor for the existing wireless market, but today’s results indicate AT&T isn’t seeing it yet. Investors should continue to watch how space-based broadband develops, though. SpaceX isn’t the only player in the game. AST SpaceMobile (NASDAQ:ASTS) is also building a satellite network to provide broadband directly to smartphones anywhere on Earth.

For now, the focus was on AT&T's continued growth. The company gained 432,000 postpaid phone net subscribers during the quarter, surpassing Wall Street's expectations of 338,500 additions.

With competition coming from satellite-based solutions, though, AT&T investors should closely follow what SpaceX says about its existing Starlink business when it reports earnings on Aug. 4.

Howard Smith 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.