Communication Services — Oct 5 – Oct 9, 2026 (Wk 41): AT&T and Alphabet Slip; Scotiabank Cuts Telco Targets Amid SpaceX Disruption Risk

TL;DR — Major communication services stocks AT&T and Alphabet experienced declines this week, with AT&T's shares falling significantly in pre-market trading. Analysts also adjusted price targets for several telecom companies, citing potential disruption from a SpaceX spectrum deal, which could reshape competition in the sector.

What moved

• AT&T (T) shares fell 7.2% in pre-market trading, contributing to broader market volatility. This movement reflects a notable shift for one of the sector's largest players, impacting overall sentiment. [GuruFocus]
• Alphabet (GOOGL) shares experienced a decline as the broader 'AI trade' cooled. As a major technology and communication services company, its performance can influence investor perception of the sector's growth drivers. [Kalkine Media]
• Walt Disney (DIS) and Netflix (NFLX) saw their shares edge higher, with Skydance Media also climbing after an initial selloff. This suggests some positive sentiment returning to streaming and content providers within the communication services sector. [24/7 Wall St.] [The Globe and Mail]
• Scotiabank cut price targets for major telecom stocks like Verizon (VZ), T-Mobile US (TMUS), and AT&T (T). This indicates a revised outlook from analysts on the valuation and future prospects of these companies. [TradingView]

The why behind the week

• Analyst price target cuts for major telecom companies (VZ, TMUS, T) were attributed to a perceived higher risk of disruption from a SpaceX spectrum deal. This highlights how new entrants and technological advancements, particularly in satellite communications, can introduce competitive pressures and reshape the traditional telecom landscape. [TradingView]
• The cooling of the 'AI trade' appears to have contributed to the slipping performance of companies like Alphabet (GOOGL) and raised questions about the stability of T-Mobile US (TMUS). This suggests that investor focus may be shifting away from AI-driven growth narratives, potentially impacting valuations for companies that have benefited from this trend. [Kalkine Media] [Kalkine Media]
• The sector is navigating changing conditions, as highlighted by discussions around TELUS (T) and BCE (BCE) in Canada. This implies that established communication companies are adapting to evolving market dynamics, technological shifts, and consumer demands to maintain their positions. [Kalkine Media] [Kalkine Media] [Kalkine Media]
• The median price-to-model-value for 136 stocks in the Communication Services sector is 0.82x. This indicates that, on average, stocks in this sector are trading below their computed model values, which can reflect various factors including market sentiment, growth expectations, or perceived risks. [SAVNG data]

📄 Filings that matter (8-Ks, straight from EDGAR)

• $ELWT — changed auditors [SEC filing] 2026-10-08
• $PSKY — officer/director departure or appointment [SEC filing] 2026-10-06
• $SIDU — officer/director departure or appointment [SEC filing] 2026-10-06
• $STRZ — officer/director departure or appointment [SEC filing] 2026-10-06
• $WBD — entered a material agreement; terminated a material agreement; completed an acquisition or disposition [SEC filing] 2026-10-06
• $PSKY — entered a material agreement; terminated a material agreement; completed an acquisition or disposition [SEC filing] 2026-10-06
• $AMC — entered a material agreement; terminated a material agreement; took on a new debt obligation [SEC filing] 2026-10-06
• $EVC — entered a material agreement [SEC filing] 2026-10-06

The macro backdrop

Every sector swims in this tide — judge the week’s moves against it.

📅 On the calendar — and why it matters here

• Fri Oct 9 — FOMC (Fed rate decision / minutes). the single biggest scheduled market mover — a rate surprise in either direction repriced everything, hardest on rate-sensitive names (growth, REITs, utilities, homebuilders). Watch for a surprise vs expectations — that gap, not the number itself, is what moves markets.
• Wed Oct 14 — CPI (inflation). a hot print pushes rate-cut odds out (pressuring long-duration assets); a soft print does the reverse — one of the highest-impact releases. Watch for a surprise vs expectations — that gap, not the number itself, is what moves markets.
• Thu Oct 15 — Retail sales. the consumer's pulse — matters most to consumer/retail names. Watch for a surprise vs expectations — that gap, not the number itself, is what moves markets.
• Thu Oct 15 — PPI (wholesale inflation). wholesale inflation — an early tell on where CPI heads next. Watch for a surprise vs expectations — that gap, not the number itself, is what moves markets.

What to watch next

• The 10-year Treasury yield is at 5.28%. Higher interest rates can increase the cost of capital for communication services companies, particularly those with significant debt or requiring substantial investment in infrastructure, potentially impacting their profitability and expansion plans. [macro data]
• The VIX, a measure of market volatility, is at 15.12. A VIX reading in this range suggests moderate market uncertainty. For communication services stocks, this can translate to fluctuating investor sentiment and potentially more pronounced price movements, as seen with AT&T's pre-market fall. [macro data]
• The high-yield credit spread is 3.09%. This spread reflects the additional yield investors demand for holding riskier corporate debt. A wider spread can indicate tighter credit conditions, making it more expensive for some communication services companies, especially those with lower credit ratings, to borrow money for operations or expansion. [macro data]
• The Shiller CAPE ratio is 41.62. This high valuation metric for the broader market suggests that overall equity prices are elevated relative to historical earnings. While not specific to communication services, a high CAPE can imply a greater sensitivity to market corrections, which could affect all sectors, including communication services. [macro data]

This week’s headlines (sources)

• AT&T (T) Shares Fall 7.2% in Pre-Market Amid Market Volatility — GuruFocus, Oct 9
• VZ, TMUS, T Stock Price Targets Cut By Scotiabank – Analyst Sees Higher Risk Of Disruption From SpaceX Spectrum Deal — TradingView, Oct 9
• Is T-Mobile US (NASDAQ:TMUS) a Steady Pick as the AI Trade Cools? — Kalkine Media, Oct 9
• Can Streaming and Sports Keep Walt Disney (NYSE:DIS) in the Lead? — Kalkine Media, Oct 9
• Why Is Alphabet (NASDAQ:GOOGL) Slipping as the AI Trade Cools Again? — Kalkine Media, Oct 9
• Can TELUS (TSX:T) Navigate Changing Telecom Sector Conditions? — Kalkine Media, Oct 8
• NRG Energy (NRG) Sees a More Significant Dip Than Broader Market: Some Facts to Know — Yahoo Finance Australia, Oct 8
• How Is BCE Strengthening TSX Communication Stocks? — Kalkine Media, Oct 8
• How Is TELUS Reshaping TSX Communication Stocks? — Kalkine Media, Oct 8
• Rogers Communications Inc. (RCI-B.TO) Stock Price, News, Quote & History — Yahoo! Finance Canada, Oct 8
• How Could BCE (TSX:BCE) Shape TSX Communication Stocks Now? — Kalkine Media, Oct 8
• Skydance Climbs 5% as Buyers Return After Its Debut Selloff; Netflix and Walt Disney Edge Higher — 24/7 Wall St., Oct 8
• Trump Makes 517 Trades in August: Buys Meta and SpaceX Bonds, Sells AMD and Nvidia — TradingKey, Oct 8
• Analysts Offer Insights on Communication Services Companies: AT&T (T) and Netflix (NFLX) — The Globe and Mail, Oct 8
• What Is Drawing Fresh Attention To Chartwell Retirement Residences (TSX:CSH.UN)? — Yahoo Finance Australia, Oct 8
• Why Are Communication Stocks Entering a New Era? — Kalkine Media, Oct 7

Every claim above cites its source — headlines link to the original outlet; [SAVNG data] marks our own EDGAR-computed figures. Where our sources don’t explain a move, we say so rather than guess. All weekly roundups →