$AT & T(T.US) fell by more than five percentage points. Oppenheimer downgraded its rating from Outperform to In-Line, citing that SpaceX's direct-to-cell satellite retail mobile service poses a structural threat to its broadband and mobile user base. The institution also lowered its fiber-to-the-home target from 60 million households to about 50 million households. This is compounded by its recent removal from the Russell Top 50 Index, which triggered passive fund selling, creating a dual pressure scenario.

For high-dividend defensive telecom stocks like this, once the narrative shifts from stable cash flow to being structurally bypassed, the valuation anchor needs to be re-evaluated. Is this round of direct-to-cell satellite threats from SpaceX just another "crying wolf" analyst narrative, or will it truly shake the moat of telecom operators within two to three years?

It looks more like the former being overpriced—the capacity and pricing structure of direct-to-cell satellites cannot replace mainstream broadband in the short term. However, the stock's reaction this time indicates the market has already started pricing this tail risk into the discount rate.