AT&T (T) Plunges 1.45% as Pricing Hikes, Data Breaches, Trust Initiatives Spur Concerns

Shares of AT&T (T) fell to their lowest level since April 2025 on October 10, with an intraday decline of 1.49%, marking a 1.45% drop over two trading days. The selloff reflects investor concerns over a combination of pricing strategies, cybersecurity challenges, and customer trust initiatives that have weighed on the telecom giant’s market performance.

Recent developments highlight tensions between AT&T’s financial growth and customer dissatisfaction. While the company reported a 69% year-over-year increase in net income to $4.4 billion for Q4 2024, driven by gains in wireless and broadband services, aggressive price hikes have sparked backlash. Monthly fees for retired unlimited wireless plans rose by $10–$20 in August 2024, and fiber/internet plans were increased by $5 in November. These adjustments, paired with the elimination of autopay and paperless billing discounts starting April 2025, have raised fears of customer attrition and eroded consumer confidence.

Compounding these pressures are repeated data breaches affecting over 100 million customers. A $177 million class-action settlement finalized in 2025 addresses incidents dating back to 2019, with sensitive information including Social Security numbers and call records exposed. The company attributes some leaks to repackaged data from prior breaches but faces ongoing reputational damage. Legal costs and regulatory scrutiny could strain short-term profitability, even as AT&T denies wrongdoing in the settlement.

Efforts to rebuild trust, such as the “AT&T Guarantee” launched in January 2025, introduce new financial risks. The program offers bill credits for service outages, tying revenue to reliability. This follows a February 2024 outage that disrupted connectivity for 12 hours, intensifying customer frustrations. Meanwhile, competitive pressures from rivals like T-Mobile, which leverages aggressive promotions, threaten to accelerate customer migration. Rising industry-wide cybersecurity expectations further challenge AT&T’s position in a sector where data protection is increasingly critical.

Investor sentiment remains cautious as the company navigates these headwinds. While strong earnings and market expansion efforts provide some support, pricing strategies, data security lapses, and regulatory uncertainties pose significant risks. AT&T’s ability to retain customers and execute trust-building initiatives effectively will likely determine its long-term stock trajectory in a competitive and security-conscious market.