Gogo continues plunge; AT&T suggests it'll price aggressively

|About: Gogo (GOGO)|By:, SA News Editor

Gogo (GOGO -29.1%) has crashed to levels last seen in September as the Street mulls AT&T's plans to launch a rival in-flight Wi-Fi service. No downgrades have come in, but JPMorgan has used the occasion to lower its PT to $23 from $28. The firm upgraded Gogo to Overweight less than two weeks ago.

Remarks from AT&T execs pointing to aggressive pricing aren't helping Gogo's cause. Strategy chief John Stankey: "We think there’s an unmet need ... we think there’s an opportunity to get more people using the service at a more affordable price." Stankey also says AT&T will (with a partner's help) complement its air-to-ground service with satellite service when a plane is over water.

William Blair is defending Gogo: The firm thinks regulatory approval for AT&T's network could take time, particularly since Gogo has all of the spectrum licenses granted to this point for air-to-ground in-flight Internet.