AT&T Inc. (T), Mattel, Inc. (MAT), and Hertz Global Holdings Inc. (HTZ) stocks slumped to 52-week lows last week amid challenging market conditions. T stock hit a low of $19.89 on Thursday but recovered to close up 0.49% after reports of SpaceX's direct-to-consumer mobile expansion triggered pressure on telecom stocks. MAT stock closed nearly 3% lower at $13.17 amid competitive pressures and lower consumer spending, while HTZ stock closed down more than 3.6% at $2.09 amid concerns over rising vehicle depreciation costs. Markets were closed Friday for U.S. Independence Day, capping a week of heavy selling across the three companies.
AT&T Stocks Hit $19.89 Low Amid SpaceX Mobile Threat
Shares of AT&T slumped to a fresh annual low of $19.89 on Thursday but recovered slightly, closing in the green. The telecommunications company took a hit alongside other telecom stocks last week, with T stock slumping more than 9%, its steepest weekly drop in four years, after reports suggested that SpaceX was in talks with Charter Communications (CHTR) to partner on a consumer mobile phone offering. SpaceX's Starlink, which currently has about 12 million subscribers, could pose a challenge to traditional carriers.
Following the reports, TD Cowen said that SpaceX's Starlink would likely be an effective complement for mobile coverage for dead zones with its direct-to-device service, but added that "satellites fall short" for a true mobile experience. The analyst said that it was "cautiously optimistic" that the incumbent big-three carriers, including AT&T will not budge, while also noting that the SpaceX overhang "does not have an ending date" and "looks like it will unfortunately remain an overhang on wireless stocks," as per TheFly.
"SpaceX will disrupt the $1.6T communications industry," Oppenheimer analyst Tim Horan reportedly said in a client note in June, as per a Barron's report. T stock has declined more than 16% so far this year. On Stocktwits, retail sentiment slipped to 'bullish' from 'extremely bullish' levels at the time of writing.
Mattel Stocks Fall to $13.17 on Weaker Quarterly Results
Mattel shares fell to a fresh 52-week low of $13.17 at close on Thursday, capping off three consecutive weeks in the red. The toy maker has come under pressure after weaker-than-expected quarterly results amid an already cautious consumer spending environment.
In its latest earnings report in late April, Mattel's first-quarter net sales grew 4% year over year, driven primarily by international markets, partly offset by a 3% decline in North America, reflecting weaker demand in key categories such as Barbie and Fisher-Price. While the company posted a net profit of $61 million, gross margin declined and operating loss widened to $103 million due to tariff costs, unfavorable foreign exchange, inflation, and higher advertising spending.
Mattel maintained its full-year guidance, noting 3%-6% expected sales growth, adjusted operating income of $580 million to $630 million, and adjusted earnings per share of $1.27-$1.39. MAT stock has also seen a series of price target cuts in recent weeks, with some analysts citing a more mature toy industry, "meaningful competition" from other sources, and weak sentiment. MAT stock has declined more than 33% this year, with retail sentiment dropping to 'bearish' from 'neutral' territory over 24 hours.
Hertz Stocks Drop to $2.09 as Depreciation Costs Rise
Hertz stock fell to a fresh 52-week low of $2.09 as concerns about the company's rising vehicle depreciation costs and weakness in the used-car market have triggered a sell-off. HTZ stock has clocked eight consecutive sessions of declines after recording the worst monthly decline in June.
The rental car company slashed its second-quarter earnings forecast to a range of $50 million to $80 million, citing unexpected weakness in the used car market. Last month, the company also completed a $350 million secured exchangeable notes offering, with an option to raise an additional $50 million, which it said would help boost liquidity and financial flexibility as it advances its turnaround efforts.
Following the updates, Morgan Stanley lowered the price target on the company to $3.50 from $5 and kept an 'Equal Weight' rating on the shares, citing higher depreciation per unit. On Stocktwits, retail sentiment around HTZ stock slipped to 'bullish' from 'extremely bullish' territory over the past 24 hours. The shares have declined more than 59% this year.
FAQ
What caused AT&T stocks to fall to a 52-week low last week?
AT&T stocks hit a 52-week low of $19.89 on Thursday after reports that SpaceX was in talks with Charter Communications to partner on a consumer mobile phone offering. The telecom stock slumped more than 9% for the week, its steepest weekly drop in four years, as SpaceX's Starlink service with about 12 million subscribers posed a potential challenge to traditional carriers.
Why did Mattel stocks decline to $13.17 on Thursday?
Mattel stocks fell to a 52-week low of $13.17 at close on Thursday amid competitive pressures and lower consumer spending. The toy maker reported weaker-than-expected quarterly results in late April, with first-quarter net sales growing 4% year over year but operating loss widening to $103 million due to tariff costs, unfavorable foreign exchange, inflation, and higher advertising spending. North America sales declined 3%, reflecting weaker demand in key categories such as Barbie and Fisher-Price.
What drove Hertz stocks down to $2.09 last week?
Hertz stocks dropped to a 52-week low of $2.09 amid concerns over rising vehicle depreciation costs and weakness in the used-car market. The rental car company slashed its second-quarter earnings forecast to a range of $50 million to $80 million, citing unexpected weakness in the used car market, and completed a $350 million secured exchangeable notes offering last month to boost liquidity.
