AT&T Yields 4.7% and Trades At 8 Times Earnings. Is the SpaceX Threat Really Worth That Discount?
A Motley Fool article notes that AT&T yields 4.7% and trades at about 8 times earnings, questioning whether a potential SpaceX satellite threat justifies the discount. The piece observes that wireless customers have rarely used satellite coverage as a backup, and that becoming a wireless carrier may not directly benefit SpaceX shareholders.
Why it matters — AT&T watchers would care because the article challenges the premise that SpaceX's satellite services pose a meaningful threat to AT&T's wireless business, potentially making its current valuation discount appear overstated.