Stock Market Today, Oct. 21: AT&T Beats Earnings on Strong Fiber Growth, Raises 2026 Profit Outlook

AT&T (T) fell 6.45% despite beating earnings, as investors weighed higher spending needs and rising competition from SpaceX (SPCX) direct-to-device connectivity plans.

The company posted better-than-expected earnings on record internet additions, driven by fiber growth, and raised its 2026 profit outlook. It also agreed to sell its Mexico wireless unit for $2 billion.

The market's reaction is the story. A beat, a record subscriber quarter, a guidance raise and a $2 billion asset sale usually draw buyers. Instead, sellers dominated. One interpretation: the market is pricing the cost of sustaining fiber growth and the long-term threat from satellite-based entrants more heavily than the near-term earnings upside. That reading is interpretive, not confirmed by the company.

The SpaceX angle matters for the broader group. Direct-to-device connectivity positions SPCX as a potential rival to carrier networks, which puts peers VZ and TMUS in the same conversation as T. The article does not report moves in those names, so any read-through is speculation until their shares trade.