Verizon posts worst day since 2002 as SpaceX U.S. network plans whack cell provider stocks
SpaceX’s purchase of up to 14 MHz of spectrum could expand Starlink Mobile and intensify competition with major U.S. carriers, analysts said.
- On Friday, telecommunications stocks fell after SpaceX announced an agreement to purchase a nationwide spectrum portfolio from Grain Management to expand Starlink internet into mobile service.
- SpaceX described the acquisition as a "license portfolio of up to 14 megahertz of paired spectrum in the 800 MHz band," which Elon Musk called a "very big deal."
- Verizon fell roughly 7% on Friday, pacing its worst day since 2002, while T-Mobile shares dropped 12% and SpaceX stock climbed around 1%.
- FCC Chair Brendan Carr stated that competition in the spectrum market is "really good news for the American consumers," noting the agency expects over $100 billion of spectrum into the market.
- While SpaceX may take some market share, Verizon remains the largest provider in America, trading at under 9 times forward earnings in the $350 billion mobile phone market.
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Verizon (NYSE: VZ) Tumbles As SpaceX Seizes Low-Band Spectrum And Scotiabank Trims Price Target
Verizon Communications (NYSE: VZ) closed at $41.65 on Friday, sliding more than 10% as a landmark spectrum acquisition by SpaceX rattled investors across the global telecom sector. Trading volume in Verizon surged to 88.6 million shares, representing roughly 286% above the stock’s three-month average of 22.9 million shares, underscoring the severity of market reaction. SpaceX […]
Why Verizon Stock Just Crashed
Key PointsSpaceX just signed a deal to buy Grain Management's satellite spectrum.SpaceX says it aims to "become a major mobile carrier in the US."10 stocks we like better than Verizon Communications › Elon Musk's Space Exploration Technologies (NASDAQ:SPCX) announced a major deal to buy spectrum for satellite communications services yesterday. SpaceX investors seem pleased with the news, and its stock is up 1.3%. But Verizon (NYSE:VZ) investors …
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