SpaceX spectrum deal sends US, European telecom stocks lower
Shares of major wireless carriers fell after SpaceX announced a spectrum deal tied to its Starlink service.
What happened
SpaceX announced a spectrum deal on Thursday as it seeks to expand further into the telecom market through its Starlink service.1
US and European telecom stocks slid following the announcement.2
Shares of Verizon, AT&T and T-Mobile all fell, with Verizon posting its worst trading day since 2002.13
Wall Street is assessing SpaceX as a growing competitive threat to the major wireless operators, though commentary cited by MarketWatch notes SpaceX still has a ways to go before it can seriously challenge them.3
Key points
What the coverage leaves out
- None of the outlets reviewed detailed the specific terms of the SpaceX spectrum deal.
- None of the outlets reviewed reported a response from Verizon, AT&T, T-Mobile or European carriers.
- None of the outlets reviewed specified which European telecom stocks were affected or by how much.
Why it matters
The stock moves reflect investor reaction to SpaceX's expansion into telecom territory via Starlink, which market participants are weighing as a potential long-term competitive threat to established wireless carriers.3
Sources (3)
Every outlet we drew on, grouped by where it is based. Read the originals for the full reporting.
North America
Southeast Asia
- 2CNASGState-controlled
US, European telecom stocks slide as SpaceX spectrum deal rattles sector