Can AT&T's Extended Tie-Ups for Connected Car Accelerate Growth?

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Can AT&T's Extended Tie-Ups for Connected Car Accelerate Growth?

AT&T Inc. T is expanding its Connected Car platform through a collaboration with LiveOne, Inc. LVO and Cisco Systems, Inc. CSCO to enhance in-vehicle entertainment services. The partnership enables automakers to offer premium entertainment experiences while reducing the complexity of managing connectivity and billing services.

Per the arrangement, LiveOne’s Slacker Radio will be available in select AT&T-connected vehicles, providing drivers and passengers with access to personalized stations, curated playlists and live audio programming. These additions broaden AT&T’s entertainment ecosystem and enhance the digital experience available to vehicle users.

The company will utilize Cisco’s Subscriber Identity Module (SIM) management platform and multi-party billing capabilities to support both connectivity and content services through a single embedded SIM. This simplifies operations for automakers, improves scalability and strengthens the efficiency of AT&T’s Connected Car platform.

In addition, AT&T and Rivian are working together to bring 5G connectivity to the Rivian R2, supporting advanced vehicle capabilities and the overall driving experience. With these initiatives, the company continues to invest in automotive technologies, positioning itself to benefit from the growing demand for smarter transportation solutions.

How Are Competitors Performing in the Automotive Industry?

AT&T faces stiff competition from Verizon Communications, Inc. VZ and T-Mobile, US, Inc. TMUS. Verizon is strengthening its presence in the automotive industry through connected vehicle and 5G technologies. The company is investing in platforms that improve vehicle connectivity, safety and real-time communication. Verizon is working with automakers and transportation partners to support the development of next-generation connected and autonomous vehicles.

T-Mobile’s 5G network helps automakers offer better connectivity and digital services in vehicles. The company supports features such as over-the-air software updates, real-time navigation and advanced infotainment experiences. T-Mobile provides IoT connectivity solutions that help manufacturers monitor and manage their automotive fleets more efficiently.

T’s Price Performance, Valuation & Estimates

AT&T shares have lost 18.9% over the past year compared with the industry’s decline of 19.1%.

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From a valuation standpoint, AT&T trades at a forward price-to-sales ratio of 1.2, below the industry tally of 1.61.

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Image Source: Zacks Investment Research

Earnings estimates for 2026 have increased 0.4% to $2.30 over the past 60 days, while the same for 2027 have remained static at $2.52.

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AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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AT&T Inc. (T): Free Stock Analysis Report
 
Verizon Communications Inc. (VZ): Free Stock Analysis Report
 
Cisco Systems, Inc. (CSCO): Free Stock Analysis Report
 
T-Mobile US, Inc. (TMUS): Free Stock Analysis Report
 
LiveOne, Inc. (LVO): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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