SpaceX wants FCC approval for up to one million satellites while a new physics paper argues that constellations above a certain size generate their own runaway debris problem, and regulators may be asking entirely the wrong questions.
Rival satellite operators are raising collision risks, according to SpaceX (NASDAQ:SPCX | SPCX Price Prediction). SpaceX said Starlink came close to about 650 different third-party satellites that were maneuvering in 2026, and only about half of them shared trajectory information. At the same time, 3DTested reports SpaceX has asked the FCC to approve up to one million satellites.
A New Paper Explains Challenges Of “Satellite Constellations” On 31 July 2026, Hugh G. Lewis, a space sustainability expert and professor of astronautics, posted “Critical Sizes of Satellite Constellations” to arXiv. Weeks earlier, Lewis told Space.com that SpaceX was doing an excellent job managing orbital traffic.
Lewis also warned: “I think we’re heading towards a situation where there will be a collision involving an operational satellite… It will be in spite of all those maneuvers.”
Lewis finds that several constellations, whether planned, partly deployed or fully deployed, are above their critical size. Above that size, the debris population becomes unstable or runs away. Lewis writes that this happens for small and large constellations alike, even with mitigation that goes beyond accepted good practices, and even in a pristine, debris-free environment. A constellation above its critical size can create its own debris problem.
Lewis argues that regulators judge risk from single satellites and ignore the combined risk of a whole constellation. Lewis calls for “more stringent approaches to regulation.” The paper names no constellations, so it does not say which systems are over their critical size. Critical size is specific to each constellation, so there is no single threshold to hold SpaceX’s plan against. Finally, the paper is a preprint, and we could not confirm that it has been peer reviewed.
What SpaceX Is Proposing 3DTested reports the filing covers altitudes of 500 km to 2,000 km, in shells up to 50 km thick. 3DTested also quotes the filing calling the project “a first step towards becoming a Kardashev II-level civilization.” Reporting says the filing describes no specific debris-mitigation measures. Elon Musk promoted the plan as needed for AI power demands. KeepTrack counts 11,137 Starlink satellites still in orbit.
How a Debris Cascade Works The Register notes that NASA scientists, including Donald Kessler, proposed the cascade scenario in 1978. Crowding makes collisions more likely, and the debris from each collision causes more collisions. Some orbits could become unusable for decades. The European Space Agency describes the February 2009 collision between Kosmos 2251, a defunct Russian satellite, and Iridium 33, an active satellite in the network run by Iridium Communications (NASDAQ:IRDM). The European Space Agency, via CNN, says that crash created thousands of pieces of debris. It showed how the mechanism works, but no cascade has happened. CNN reported in January 2025 that tens of thousands of trackable pieces of space junk orbit Earth.
Critics Warn of Compounding Risk In a March Scientific American column, Phil Plait warned that multiplying satellite numbers by a factor of thousands could make the threat “apocalyptically worse.” In May, Plait told readers to watch out for of tech bros who treat the Kardashev scale as the “be-all and end-all,” calling that view “profoundly limited and limiting.” Plait, who says he supports space exploration, credits Musk with having “truly revolutionized rocketry.” He adds that Musk’s predictions tend to be “several years off the mark.”
SpaceX Points to Unshared Trajectories Teslarati reports that over six months, Starlink recorded about 164,000 close approaches in which the closest point came within four hours of another satellite’s unannounced maneuver. Aerospace Global News reports that in August, a Starlink satellite came within 134 meters of another spacecraft and had to turn its solar arrays edge-on. Aerospace Global News also reports that in October 2025, another spacecraft briefly put itself on a course within 57 meters of a Starlink satellite. SpaceX says many of the satellites that did not share data were run by Chinese organizations, though it says the problem goes beyond China and Russia. Our sources do not verify that claim. SpaceX calls keeping maneuver plans private counterproductive and offers a free data-sharing platform.
On a separate measure, Space.com reports that Starlink satellites made over 355,000 collision-avoidance maneuvers from June 1, 2025 to May 31, 2026.
Musk’s Remarks Over Time In December 2021, when Starlink was far smaller, Musk said “a couple of thousand satellites is nothing.” In November 2024, Musk replied “Exactly” to a post saying 10 times as many spacecraft would not be a challenge. In March 2026, Musk argued that space is so vast the satellites would be spread far apart. No source shows him speaking directly about a cascade.
Crowding also has other sources. IBTimes reports China has a separate plan for a 200,000-strong fleet, and AST SpaceMobile (NASDAQ:ASTS) is building its own constellation.
Single-Satellite Rules Face a Constellation Test The FCC review tests Lewis’s argument that rules built around single satellites fail to judge a whole constellation. The company asking the industry to share data is also planning to add the most satellites.
Contact [email protected] for any questions or corrections.
SummarySpaceX is rated Buy, leveraging Starlink's profitability and a strategic move into direct wireless service via major spectrum acquisitions.Starlink's $1.66B operating profit nearly covers SpaceX's losses from rockets and AI, with business/government revenue outpacing consumer growth.Securing up to 79 MHz of wireless spectrum positions SPCX to directly target the Big Three's $222B annual wireless revenue pool with minimal share needed for material impact.Capital spending remains a key risk, with AI-driven capex at 2.35x revenue, and future funding needs potentially requiring more debt or equity.Sven Piper/iStock Editorial via Getty Images
On Oct. 8, Space Exploration Technologies Corp. (SPCX) agreed to buy a nationwide set of wireless licenses from Grain Management, in a deal The Wall Street Journal pegged at about $8
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Morgan Stanley analyst Adam Jonas said that a single Space Exploration Technologies Corp. (NASDAQ:SPCX) Starship launch will be equivalent to a month’s worth of Falcon 9 rocket launches.
The ‘Biggest Test’ For Starship’s Reusable CapabilitiesOn Sunday, influencer and Tesla Inc. (NASDAQ:TSLA) investor Sawyer Merritt shared a note by Jonas via a post on the social media platform X. In the note, Jonas said that the upcoming Starship Flight Test 15 was “shaping up as SpaceX’s biggest test towards Starship reusability since the IPO.”
The analyst then said that the upcoming weeks would help “profoundly evolve investor expectations” about SpaceX’s role in “converting energy into intelligence” through robots.
Jonas said that SpaceX would reduce “launch costs by a further order of magnitude” with Starship and “significantly” increase mass to orbit, which could “create new economies and new demand for materials, devices and services on earth that currently do not exist.”
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He also pointed to Starship being able to put a lot more payload to orbit following Starlink V3 satellites deployed in orbit during the Flight Test 14. “Going forward, each Starship launch of Starlink is equivalent to min 1 month worth of Falcon 9 launches,” Jonas said, referring to Starlink capacity.
“Each Starlink V3 has 10x the downlink capacity of the v2 mini sats currently launching on Falcon 9 every ~3 days. This means Flight 15 would equate to 1-2+ months of F9 launches,” the analyst said.
Jonas had earlier issued a $300 price target for SpaceX, saying that the company’s stock looks “unusually cheap” when factoring in the multiple interlinked businesses under SpaceX. TV Host Jim Cramer also backed SpaceX last week, saying that the commercial spaceflight company’s compute renting agreements were particularly profitable.
On the other hand, CEO Elon Musk, last week, said that an “earthquake” was about to hit the U.S. telecom industry as the Federal Communications Commission (FCC) greenlit SpaceX’s acquisition of the 800 MHz frequency band for the Starlink Mobile cellular service.
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Elon Musk Touts Six-Week TimelineMusk shed light on the launch timeline of the Starship Flight Test 15 during the X Takeover event hosted by the Tesla Owners Silicon Valley. Musk, during his appearance, said that the engine glitch during the Flight Test 14 was not a big issue and that it was “pretty easy to remedy.”
Musk also said that the heat shield on the rocket was “extremely robust” and that the next “big milestone” was being able to catch the rocket, which he had said SpaceX would attempt to do in the days preceding the Flight Test 14.
“We don’t know the exact launch date, but probably about four weeks or so, four to six weeks,” Musk said as he expanded on the exact date of the Starship Flight Test 15.
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Check out more of Benzinga’s Future Of Mobility coverage by following this link.
SpaceX (NASDAQ:SPCX – Get Free Report) shares rose 1.2% during trading on Friday after Barclays upgraded the stock from an underweight rating to a strong-buy rating. The company traded as high as $166.38 and last traded at $162.57. 92,337,164 shares changed hands during mid-day trading, a decline of 10% from the average daily volume of 102,438,719 shares. The stock had previously closed at $160.57.
Several other brokerages also recently issued reports on SPCX. Susquehanna raised their target price on shares of SpaceX from $144.00 to $173.00 and gave the company a “neutral” rating in a research note on Wednesday. Mizuho initiated coverage on SpaceX in a report on Tuesday, July 7th. They set an “outperform” rating and a $200.00 price target for the company. Oppenheimer boosted their price target on SpaceX from $250.00 to $280.00 and gave the stock an “outperform” rating in a research report on Wednesday, September 2nd. Royal Bank Of Canada reissued an “outperform” rating on shares of SpaceX in a research report on Monday, September 28th. Finally, Roth Capital upgraded SpaceX to a “buy” rating in a research note on Monday, June 22nd. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating, nine have given a Hold rating and six have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $219.77.
Read Our Latest Stock Report on SpaceX
Insider Transactions at SpaceX In other SpaceX news, COO Gwynne Shotwell sold 342,170 shares of the company’s stock in a transaction on Tuesday, September 22nd. The stock was sold at an average price of $153.57, for a total value of $52,547,046.90. Following the transaction, the chief operating officer directly owned 2,472,035 shares of the company’s stock, valued at $379,630,414.95. This represents a 12.16% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Key SpaceX News Here are the key news stories impacting SpaceX this week:
Positive Sentiment: The spectrum purchase—reported at roughly $8 billion by some outlets, although the exact price was not disclosed—could give Starlink Mobile stronger coverage indoors and in dense urban areas where satellites are less effective. The deal also positions SpaceX to compete more directly with AT&T, Verizon and T-Mobile. SpaceX’s low-band spectrum deal gives Starlink Mobile a terrestrial foothold Positive Sentiment: Analyst support added to the bullish reaction. Barclays initiated coverage with a Buy rating and a $254 target, while TD Cowen reaffirmed Buy with a $200 target; other analysts highlighted the hybrid satellite-and-terrestrial network strategy. Two Reasons SpaceX Stock Is Jumping Higher Today Positive Sentiment: The FCC’s approval of up to 15,000 next-generation Starlink satellites strengthens the company’s long-term direct-to-device opportunity. Investors are also valuing SpaceX’s reported AI-computing demand and potential Nvidia chip purchases as additional growth engines. SpaceX Gets Green Light for 15,000 Starlink Satellites Neutral Sentiment: The spectrum transaction remains subject to final FCC approval, and SpaceX still must invest heavily to build a terrestrial network, integrate services and attract wireless customers. The launch of Blue Origin as a future public-company competitor may also increase attention on the space sector. SpaceX Makes Big Play to Become a Wireless Carrier Negative Sentiment: Up to approximately $51 billion of insider shares became eligible for sale, creating a potential supply overhang and volatility risk after the recent rally. SpaceX Insider Shares Unlock Negative Sentiment: Reports that SpaceX may borrow $40 billion to purchase Nvidia chips continue to raise concerns about leverage, execution and the risk of spending aggressively on an unproven AI infrastructure business despite its substantial cash holdings. SpaceX in Talks to Raise $40 Billion in Loans Institutional Investors Weigh In On SpaceX A number of institutional investors have recently modified their holdings of the business. Syntax Research Inc. acquired a new position in shares of SpaceX in the second quarter valued at about $26,000. Atwood & Palmer Inc. acquired a new stake in SpaceX in the 2nd quarter worth about $29,000. PayPay Securities Corp acquired a new stake in SpaceX in the 2nd quarter worth about $30,000. Hickory Point Bank & Trust bought a new stake in SpaceX in the 3rd quarter valued at about $30,000. Finally, Marquette Asset Management LLC bought a new stake in SpaceX in the 2nd quarter valued at about $32,000.
SpaceX Trading Up 1.2% The company has a 50-day moving average of $145.03. The firm has a market cap of $2.14 trillion and a PE ratio of -1,806.33. The company has a current ratio of 5.12, a quick ratio of 4.99 and a debt-to-equity ratio of 0.29.
SpaceX (NASDAQ:SPCX – Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The company reported ($0.09) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.26) by $0.17. The business had revenue of $7.81 billion during the quarter. SpaceX’s quarterly revenue was up 91.9% compared to the same quarter last year. On average, equities research analysts forecast that SpaceX will post 0.09 earnings per share for the current year.
About SpaceX (Get Free Report)
Space Exploration Technologies Corp. (SpaceX) is a privately held aerospace company founded in 2002 by Elon Musk. The company develops and operates launch vehicles, spacecraft and satellite systems designed to reduce the cost of access to space and support commercial, government and scientific missions.
SpaceX’s primary products and services include the Falcon 9 and Falcon Heavy launch vehicles, the Dragon spacecraft and the Starlink satellite internet network. The company also is developing Starship, a fully reusable launch and spacecraft system intended for missions to Earth orbit, the Moon and Mars.
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Ray Dalio is the founder of Bridgewater Associates, the largest hedge fund in the world, with assets under management between $100 billion and $125 billion.
Dalio is no longer the CEO, but given his success with Bridgewater, he's one of the most respected investors in the world. He’s also known for macroeconomic investing, including his focus on debt cycles, and geopolitical and market risks.
When Dalio makes a prediction, investors tend to listen, and he just made a bold statement about the AI boom.
Ray Dalio thinks the AI bubble could be burstingSpeaking at the Forbes Global CEO Conference in Singapore this past week, Dalio commented on the massive amount of debt being taken on to fund AI growth, including data centers.
The billionaire called the current AI situation a "classic bubble," and pointed to rising interest rates and the need for investors to convert paper gains into cash as a potential source of pressure on AI stock valuations. Dalio believed rising rates could cause the bubble to pop, adding, "We're in the part of the cycle that is before that but approaching that. I think we're close to that."
Bond yields have risen around the world due to a range of factors, including higher energy costs and inflation, resulting from the war in Iran.
Dalio also noted that wealth taxes, such as the one proposed in California, could lead wealthy investors to convert stock gains into cash.
Where is the debt bubble coming from?The four big hyperscalers, Amazon (AMZN +3.29%), Alphabet (GOOG +0.87%) (GOOGL +0.97%), Microsoft (MSFT +2.38%), and Meta Platforms (META -0.31%), are set to spend more than $700 billion on capital expenditures this year, with much of that going to AI-related investments like chips and data centers.
As the chart below shows, with the exception of Microsoft, all of these companies have added over $200 billion in debt over the last year.
AMZN Total Long Term Debt (Quarterly) data by YCharts
However, these companies are hugely profitable and have market caps in the trillions of dollars. They can afford to make such moves on their balance sheets.
The larger risk facing the market may be from the newer wave of AI companies, which includes Anthropic, OpenAI, and Space Exploration Technologies (SPCX +1.25%), or SpaceX.
Though these companies are chasing valuations in the $2-trillion range, they are not consistently profitable, meaning their borrowing comes with significantly more risk.
Anthropic has committed to $518 billion in future cloud, computing, and AI infrastructure spending, with 80% of that being non-cancellable. OpenAI, meanwhile, has $665 billion in similar spending commitments.
SpaceX is the only one of the three that is currently publicly traded, and even after raising $86 billion in its IPO, Elon Musk's space company has wasted little time in raising more cash.
SpaceX's big plansSpaceX has transformed over the last year after acquiring xAI, and the company is not currently profitable and needs funding to support its blockbuster ambitions, which include launching data centers into space and eventually colonizing Mars. It also aims to reach 10 gigawatts (GW) of computing capacity by the end of next year, which represents roughly $350 billion to $600 billion in infrastructure costs. 10 GW is also enough to power 7.5 million to 10 million homes.
Following its IPO, the company raised $25 billion in new debt and is now seeking another $40 billion, according to Financial Times. The company's debt raises are likely to continue as Morgan Stanley's Adam Jonas predicted that it would raise an average of $80 billion in debt annually through 2035. We've never seen a company that demanded that kind of financial leverage.
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Will SpaceX pop the bubble?I don't necessarily agree with Dalio's statement that we're approaching the bursting of the bubble. Growth is still strong in the chip sector and among hyperscalers, and AI adoption is clearly scaling, as evidenced by the recent success of Meta's Muse AI personal agent.
However, if the bubble does burst, I think SpaceX will be the first domino to fall. The company has unprecedented ambitions, but little ability to self-fund them. It doesn't have much debt now, but that could change considerably in the next year.
If the company remains unprofitable and interest rates continue to go up, as Dalio predicts, the pressure on SpaceX is likely to mount, and that could spell trouble for broader debt financing in the AI sector.
It feels like only yesterday, but it's actually been four months since the Space Exploration Technologies (SPCX +1.25%) IPO. Over this time, shares of Elon Musk's famous space company, which began trading at $135, have gyrated wildly, shooting up 56%, then falling 49%, only to flip again and rise 59% from their nadir of $108.
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Other space stocks have enjoyed (and suffered) similar runs.
How much should SpaceX stock cost? And how much are SpaceX's competitors worth? At 200 times forward earnings today, I'm of the opinion that SpaceX stock is overpriced. But if you want to invest in space stocks and are willing to look beyond just the most obvious choice, you just might find some better bargains.
Below, I'll suggest four slightly lower-profile space stocks worth considering -- Rocket Lab (RKLB -0.28%), Redwire (RDW -1.84%), Planet Labs (PL -0.06%), and AST SpaceMobile (ASTS -10.48%) -- and how much they might be worth five years from now.
Image source: Getty Images.
Rocket Lab in 2030 Let's begin with Rocket Lab, the company most similar to SpaceX in that it builds everything from rockets to spacecraft to satellites -- and will soon have a space communications business similar to Starlink.
At last report, Rocket Lab's two current businesses, launch services and space systems, were generating a combined $769 million per year. (It's also on track to absorb Iridium and its $884 million revenue stream mid-2027.) Rocket Lab isn't yet profitable, but analysts polled by S&P Global Market Intelligence estimate it will become profitable in 2028. My own estimates have Rocket Lab earning its first profit earlier than that -- in 2027 -- assuming its Iridium acquisition happens on schedule.
But what happens then?
It's hard to make predictions. That said, consulting giant KPMG estimates that the global space economy is currently worth $433 billion in annual revenue and is on track to hit $600 billion by 2030, with an annual growth rate of approximately 8.5%. Research from McKinsey is even more optimistic, predicting a $1.8 trillion space economy by 2035. This would suggest either a relatively constant growth rate of more than 18%, or perhaps respectable 8.5% growth through 2030, accelerating to 24.5% from 2031 through 2035.
For simplicity's sake, let's assume constant, 18% growth. Applied to $1.65 billion in annual revenue for Rocket Lab and Iridium combined, this implies that by 2030, Rocket Lab might generate $3.8 billion in annual revenue.
It's hard to guess what multiple investors would pay for a business of that size -- but I don't think guessing is necessary here. Even assuming a 10x price-to-sales ratio on the stock, which would be quite expensive, historically speaking, would value Rocket Lab at only $38 billion.
That's below Rocket Lab's market capitalization today, and implies the stock could be "dead money" for years.
Redwire in 2030 Next, we apply the same logic to Redwire, a specialist in space infrastructure that now also boasts a big terrestrial defense business. Between space and defense, Redwire generated $426 million in revenue over the past 12 months.
An 18% growth rate over the next five years could lift Redwire's sales to just under $1 billion by 2030. Whether those sales would be profitable is another story. (Most analysts polled by S&P Global Market Intelligence agree that they won't be.)
In that case, I wouldn't expect investors to pay more than 4x 2030 revenue for Redwire -- $4 billion. The good news here is that Redwire stock costs only about $2.6 billion today, leaving room for about 50% growth over the next five years.
Planet Labs in 2030 The news for investors in Planet Labs is also encouraging. Owner of one of the world's largest constellations of Earth observation satellites, Planet Labs generated $378 million in sales over the last 12 months. The company is approaching breakeven on a GAAP basis and is already generating positive free cash flow.
An 18% revenue growth rate might lift Planet to $865 million in sales by 2030. For a soon-to-be-profitable space stock, let's assume a 10 sales multiple here as well, implying an $8.6 billion market capitalization in 2030.
With Planet Labs stock valued at only $6.8 billion today, this space stock has some room to grow, too.
AST SpaceMobile in 2030 Not so for AST SpaceMobile. While the company deserves applause for being the first to prove the concept of cell-to-cell satellite communications, AST stumbled out of the gate.
Its $115 million in trailing-12-month revenue is the smallest among these five space stocks. Five years down the road, assuming 18% growth, AST would be lucky to break $260 million in annual sales -- far too little to justify its current $24.5 billion implied market capitalization.
Invest $1,000 in any of these stocks. By 2030, I'd expect Redwire and Planet Labs to earn you several hundred dollars in profit. SpaceX, Rocket Lab, and especially AST SpaceMobile, I fear, are more likely to lose you money over the next five years.
SpaceX (NASDAQ: SPCX) stock has gained nearly 22% over the past two months, rewarding investors who bought shares in August as the stock recovered from its post-IPO dip.
At press time, SpaceX was trading at $162.57, up from $133.29 on August 11. Therefore, an investor who put $1,000 into the stock at the earlier price would now hold approximately $1,220 worth of shares, representing a paper profit of about $220, or 21.97%, before fees and taxes.
SpaceX six-month stock price chart. Source: Finbold The stock’s performance reflects investor interest in SpaceX’s expanding business beyond rocket launches, particularly Starlink’s satellite internet services and its plans to enter the conventional mobile telecommunications market.
However, the two-month gain does not guarantee further upside, as the stock remains exposed to market volatility, valuation concerns, and substantial investment requirements.
One of SpaceX’s latest developments is its planned expansion into mobile telecommunications.
In this line, on October 8, the company announced an agreement to acquire an $8 billion portfolio of low-band wireless spectrum licenses from Grain Management.
The transaction is intended to expand Starlink Mobile’s capabilities and strengthen SpaceX’s position in the wireless market, subject to regulatory approval.
The move could open up a broader market by combining satellite connectivity with mobile services. However, it also adds substantial costs and puts SpaceX in more direct competition with established wireless carriers.
SpaceX expansion Starlink’s international expansion is another potential growth driver. On October 10, Reuters reported that Venezuela’s interim president, Delcy Rodríguez, had authorized Starlink to begin operating in the country under an agreement with the US company.
Further subscriber growth could strengthen SpaceX’s recurring revenue, although the financial contribution of new markets will depend on customer adoption, pricing and operating costs.
SpaceX is also investing heavily in AI infrastructure, adding another potential source of growth beyond rocket launches and satellite internet.
Reports on its second-quarter 2026 results indicated that the company generated $7.8 billion in revenue, up 92% year over year, while adjusted EBITDA reached $3.5 billion. However, SpaceX still recorded a net loss of $541 million.
The company has committed substantial capital to AI infrastructure, highlighting the scale of investment required to pursue its ambitions.
If SpaceX converts these investments into sustainable earnings, its valuation could receive further support.
However, if spending rises faster than revenue and cash flow, the stock could face renewed pressure.
SpaceX (SPCX +1.25%) went public at $135 per share on June 12, reached a record high of $211.39 four days later, but now trades at about $160. The aerospace and AI company initially attracted significant attention from growth-oriented investors. Still, concerns about its capital-intensive expansion plans, steep losses, and sky-high valuation weighed on its stock.
Image source: Getty Images.
Why haven't I bought SpaceX yet? SpaceX has plenty of irons in the fire. Its Starlink satellite internet service is growing rapidly, and its recent acquisition of T-Mobile's 800 MHz spectrum could turn it into a mobile powerhouse. Its namesake spacecraft business could expand significantly as it ramps up Starship launches, the largest rocket ever built. Its fragmented AI business (which includes X, Grok, and Cursor) could also flourish as it launches new products and services.
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However, I wouldn't touch SpaceX's stock until its AI business stabilizes. In the first half of 2026, the AI segment's operating loss widened year over year from $2.46 billion to $3.73 billion, wiping out Starlink's operating profit of $2.84 billion. It expects the AI segment's losses to widen further as it ramps up its infrastructure investments. Those capital-intensive bets might eventually pay off, but they'll cast a dark cloud over its stock if interest rates keep rising.
With a market cap of $2.2 trillion, SpaceX trades at 49 times this year's sales. I wouldn't pay that premium unless it can prove its AI business isn't just a money pit.
Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends T-Mobile US. The Motley Fool has a disclosure policy.
Famed growth investor Cathie Wood has been a longtime fan of Elon Musk and Space Exploration Technologies (SPCX +1.25%). She gained renown for spotlighting Tesla before it exploded into the trillion-dollar company it is today, and her firm, Ark Invest, sold private access to SpaceX before it went public.
For the first time since SpaceX went public in June, Wood cut her position by roughly 55,000 shares. What does that mean for retail investors?
Why Cathie Wood loves SpaceX Cathie Wood and her team have written many pages extolling SpaceX and its part in the "space economy," and they're bullish on the company's Starlink satellite broadband business. Starlink is the dominant industry player, and it's growing quickly. It's also the only SpaceX segment that's profitable.
The firm estimates that reusable rockets will create a $160 billion market opportunity, and it embraces the idea of putting data centers into space, which it says will be 25% less costly than on Earth. SpaceX's rocket-launching business is still unprofitable, but Ark envisions costs decreasing and revenue increasing over the next several years. SpaceX revenue increased 29% year over year in the second quarter.
In the second quarter, Starlink revenue increased 66% year over year, and operating income rose 79%. Subscriber count doubled to 12 million, and Starlink now has more than 11,000 satellites in space, about two-thirds of all satellites in space, and is powering broadband Internet across the world. It has signed deals with major airlines for in-flight web access, including American Airlines, Southwest Airlines, and Virgin Atlantic. It has contracts with the U.S. government for secure satellite services.
SpaceX's position in Ark Invest's ETFs Ark Invest has positions in SpaceX in four of Wood's exchange-traded funds (ETFs) and its venture fund:
On Oct. 6, Ark Invest sold 54,873 shares of SpaceX stock from the Next Generation Technology ETF, or 0.4% of its position. That's a tiny amount of what the ETF owns, and it doesn't indicate any decline in its confidence in SpaceX.
In general, when Ark Invest sells a stock like this, it's doing some reshuffling. It might need to rebalance the portfolio in response to stock movements, or it might need some cash for another opportunity.
SpaceX is one of Ark Invest's largest positions, and it's unlikely the fund manager will sell much of the stock, but I'd still keep an eye out for further sales.
A larger or repeated sale would be a different signal, particularly if it came alongside any slowdown at Starlink, which is still carrying the company’s profitability while rocket launches and the AI business lose money.
SpaceX (SPCX +1.25%) finally got Starship to orbit. On Sept. 28, on its 14th test flight, the huge rocket's upper stage reached orbit for the first time and deployed 26 next-generation Starlink V3 satellites.
Yet the growth stock closed around 2% lower that day.
I don't think the market missed anything. Reaching orbit showed Starship can deliver satellites. But both halves of the rocket ended the flight in the ocean, and the economics SpaceX has promised rest on getting them back and flying them again. That test is still ahead, and it's the one more likely to change SpaceX's numbers.
Image source: Getty Images.
Both stages ended in the oceanThe Super Heavy booster splashed down in the Gulf, where its flight termination system was triggered as a planned safety demonstration. The ship splashed down in the northern Pacific after controllers shortened its time in orbit because one of its engines had shut down early.
But a rocket used up on every launch isn't the vehicle SpaceX has been describing to investors.
Bret Johnsen, SpaceX's chief financial officer, said in August that Starship aims to quadruple payload capacity and cut launch costs tenfold compared to Falcon 9. The company's initial public offering (IPO) prospectus is just as clear about how. It says having reusable first and second stages is "critical to reducing launch costs and increasing launch cadence."
The booster half is partly proven: SpaceX has caught Super Heavy boosters with its launch tower on three past test flights and reflown two of them. It's never caught a ship.
Starlink pays for the launchesI'd say cheaper launches could help Starlink more than the launch business. Notably, SpaceX books no revenue from launching its own satellites. Instead, these launch costs are added to the satellites' cost on the balance sheet and then expensed as depreciation in the connectivity segment.
And this expense keeps rising. In the second quarter of 2026, connectivity depreciation and amortization was $805 million, up 41% year over year and above the first quarter's $783 million. Still, the segment's operating income rose 79% year over year to $1.7 billion, faster than its 66% revenue growth, so its margins are widening. Every satellite launched on a reused rocket could carry a lower cost onto the books -- plus less depreciation against this profit for years to come.
How many flights does Starlink need?Each V3 satellite is designed for 1 terabit per second of downlink capacity, about a tenfold increase over a V2 satellite. SpaceX expects one Starship to eventually carry up to 60 of them, according to its IPO prospectus, so Flight 14's 26 satellites were under half a full load.
Musk has said V3 satellites won't noticeably improve service until the network has roughly 1,000 of them, which he expects around the second quarter of 2027. At 26 per flight, that's about 37 more Starship launches. Even at 60 per flight, it's at least 17. The program has made 14 flights in its entire history.
Building a new ship and booster for each of these flights might get really costly, so reuse is arguably what makes that many launches doable on that schedule.
And capacity matters because of how Starlink is growing. Subscribers doubled year over year to 12.0 million by the end of June, while average revenue per user dropped from $85 a month to $66. Put simply, Starlink is gaining customers that pay less on average, and more customers need more capacity.
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The first reflight could be months awayOn Aug. 20, Musk wrote on X that a ship catch would likely happen in a few months, with the first ship reflight late this year or early next. Flight 15 might include the first catch attempt.
Then again, Musk's dates slip. On the Aug. 4 earnings call, he said SpaceX would try to catch the ship on Flight 14.
At around $168 as I write, SpaceX has a market value over $2.2 trillion -- a valuation of more than 70 times sales, using annualized second-quarter revenue. A price like that already assumes Starship becomes the cheap, reusable rocket SpaceX describes.
Reaching orbit didn't prove that. A catch and a reflight would go a long way toward it. Until a Starship upper stage flies again, I think investors are paying for a cost advantage SpaceX hasn't shown yet.
Elon Musk says SpaceX could one day be worth vastly more than Earth's economy. Here's what that would take. By You're currently following this author! Click to unsubscribe from email alerts.
Elon Musk is known for making outlandish predictions. Chip Somodevilla/Getty Images Elon Musk is known for having planet-sized ambitions, and his latest pronouncement lives up to that billing.
"This will sound super crazy, but I see a path to SpaceX being worth orders of magnitude more than the current Earth economy," the Tesla and SpaceX CEO wrote in a Thursday post on X.
The International Monetary Fund projected in April that the total value of world output, measured at market exchange rates, would hit $126 trillion this year.
SpaceX had a $2.2 trillion market capitalization at Thursday's close, meaning the global economy is worth roughly 57 times more.
Musk's vision of SpaceX becoming at least two orders of magnitude — 100 times — more valuable suggests it will one day have a market cap in excess of $12 quadrillion.
All else being equal, SpaceX's stock price would have to rise 5,500-fold to achieve that valuation, meaning $1,000 invested today would skyrocket in value to $5.5 million.
This will sound super crazy, but I see a path to SpaceX being worth orders of magnitude more than the current Earth economy
— Elon Musk (@elonmusk) October 8, 2026 Musk elaborated on his statement in a Friday post.
"'Seeing a path' is not a statement of extreme confidence that we will achieve that outcome," he wrote. "Just means that I believe there is such a path and the probability of achieving it is not zero."
SpaceX's revenue amounted to $7.8 billion in the second quarter, up 92% from the same period last year. The maker of rockets, spacecraft, and satellites recorded a $541 million net loss, down from $1 billion 12 months earlier.
Musk told Wall Street analysts in August that SpaceX was internally projecting $1 trillion of revenue in 2030, and there was a "non-zero chance" it could reach that milestone in 2029.
But even if the company hits that mark, then grows revenue 100-fold from there to $100 trillion, that would still be less than 1% of the minimum company valuation Musk envisions.
"I guess his idea is that SpaceX will open up new colonies or human civilizations beyond the Earth, and thus tap into minerals, energy, and growth beyond what we are capable of with the finite resources we have available to us here," Russ Mould, AJ Bell's investment director, told Business Insider by email.
Yet there are likely to be "considerable risks and obstacles" when it comes to operating in space or on other planets, he continued, "not to mention considerable expense."
Those challenges mean that an investor using a discounted cash flow to value SpaceX today should apply an "extremely high" discount rate to those potential cash flows, Mould said, so the "theoretical value of SpaceX equity may not be as high as some might think."
Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, echoed Mould's point about SpaceX likely having to spend huge sums to travel to other planets and capitalize on their resources.
"What he doesn't say is how much it will cost to get there!" she told Business Insider by email.
Other analysts took a more measured view.
"Musk is a believer and a stargazer!" Neil Wilson, investor strategist at Saxo UK, told Business Insider by email, adding that SpaceX stock could be seen as a "bet on the future of mankind."
He's "obviously overegging it," Wilson continued, before noting that "even a tiny fraction of that amount makes SpaceX incredibly valuable."
However, Wilson added that SpaceX is "massively exposed to AI bubble risk and relies on the debt financing bandwagon to keep rolling."
He recommended investors treat the X post as a "bit of classic Musk hype and theatre," and instead "focus on what's going on under the hood."
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Theron Mohamed You're currently following this author! Click to unsubscribe from email alerts.
Theron Mohamed is a London-based correspondent on the International team at Business Insider. His coverage spans finance, investing, wealth, markets, and the economy.Theron joined BI in 2019 as a reporter at Markets Insider and rose to the rank of correspondent before moving to the Trending team then the broader International team. He previously covered tech, media, and telecom stocks for Investors Chronicle magazine and had a brief stint on the Financial Times' Data team. He interned at the Wall Street Journal in New York where he primarily wrote for Heard on the Street.Theron has freelanced for The Independent, The Telegraph, WIRED, and several smaller publications. He holds an undergraduate degree in geography from the London School of Economics, and a master's degree in journalism from Columbia University.Theron often covers Warren Buffett, Michael Burry, and other elite investors. He also writes about the world's wealthiest people and shares financial advice from all manner of rich and successful people.Email Theron at [email protected] and follow him on X @theron_mohamed.
Finance Elon Musk SpaceX More GDP Billionaires Stocks Investing
As SpaceX struggles to launch Starlink in India, Elon Musk has stepped up his attack on billionaire Mukesh Ambani, mockingly calling him the country’s “prime minister” to suggest he wields outsized control over its government and accusing him of blocking the satellite internet service from competing.
On Friday, Musk continued his criticism of the famed Reliance Industries’ chairperson in a post on X, arguing that Starlink could bring internet access to areas that remain unconnected, giving children more opportunities to learn, and helping small businesses reach customers worldwide.
“Naturally, you would prefer to maintain your monopolistic exploitation of the great people of India, but would you nonetheless consider allowing Starlink to compete?” Musk wrote.
Reliance Jio, Reliance Industries’ telecom arm, did not immediately respond to a request for comment.
Musk’s latest comments follow his accusations earlier this week that unnamed “oligarchs” were blocking Starlink’s launch in India to protect their business interests. India’s Ministry of Communications rejected the allegations, saying the country’s regulatory framework for satellite communications is “fair and non-discriminatory.” Musk then went further on Thursday, questioning Ambani’s influence in a separate post on X. “Is Ambani the real boss of India?” he asked.
SpaceX has spent years trying to launch Starlink in India. Last year, it even struck distribution agreements with Ambani’s Reliance Jio and Bharti Airtel, India’s second-largest telecom operator, to offer the service once it received the necessary approvals. However, Starlink has not yet received the go-ahead from New Delhi to begin commercial operations, despite securing key regulatory clearances.
In its Thursday statement, the Indian communication ministry said Starlink and two other licensed satellite operators are undergoing security assessments that must be completed before they can receive satellite spectrum. The ministry said all three are at “broadly the same regulatory stage,” rejecting Musk’s suggestion that Starlink was being singled out.
Jio and Airtel are also seeking to launch their satellite internet services in India. Jio has a joint venture with Luxembourg-based SES, while Airtel is a major shareholder in Eutelsat OneWeb, which is striving to offer satellite connectivity in the country.
India, the world’s most populous country with over a billion internet users, is a major market for Musk. But expanding there also means dealing with powerful business figures such as Ambani, whose Reliance conglomerate owns India’s largest telecom operator and works with Prime Minister Narendra Modi’s government on major projects.
Alongside Starlink’s delayed launch, Musk has also faced challenges expanding Tesla in India. The electric carmaker launched in the country last year after years of anticipation but registered just 699 vehicles in its first 12 months of deliveries, according to data cited by Electrek. Steep import duties pushed the Model Y’s launch price in India to nearly twice its U.S. price. Tesla lowered its prices earlier this year, but its cars remain considerably more expensive in India than in the U.S.
Before Musk’s latest attack, Starlink and Ambani’s Reliance Jio clashed over how to allocate satellite spectrum in India. Musk’s company wanted the spectrum to be assigned through an administrative process, while Jio pushed for an auction. Ultimately, New Delhi went ahead with Starlink and decided to allocate the spectrum administratively.
Starlink’s launch in India remains in limbo. India’s telecom minister Jyotiraditya Scindia on Friday pushed back against Musk’s allegations, saying the country “does not allow a monopoly in any sector.”
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Jagmeet covers startups, tech policy-related updates, and all other major tech-centric developments from India for TechCrunch. He previously worked as a principal correspondent at NDTV.
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Venezuela's interim President Delcy Rodriguez has authorized Starlink, the satellite internet service operated by Elon Musk's SpaceX , to operate in the Latin American country.
When investors think of Space Exploration Technologies (SPCX +1.25%), better known as SpaceX, they likely think first of its Falcon and Starship rockets, which can launch their payloads and then land back on Earth to be reused. While that technology is incredible and game-changing, it's not what actually is driving most of the company's business.
Instead, SpaceX has a secret weapon that's hiding in plain sight, and if investors understand what it could do for the stock, it would change their perspective on it overnight.
Image source: The Motley Fool.
Is SpaceX really just another AI company? SpaceX operates in three segments: space, AI, and connectivity. Space is what it's known for, but that part of the business really isn't doing a lot for the company. In the second quarter, the revenue split looked like this:
SegmentQ2 RevenueSpace$962 millionConnectivity$4.29 billionAI$2.56 billion Data source: SpaceX.
So, while space may be what investors are focusing on, it's far from the largest segment. It's also growing the slowest.
Another area investors may focus on is connectivity, which is primarily the Starlink satellite broadband service. Starlink is an incredible technology that's rapidly gaining adoption; however, there is a limit to how many customers actually need satellite internet service. So while this segment is growing pretty quickly right now, it will eventually plateau.
That leaves AI, which I view as SpaceX's true secret weapon. Prior to going public, Elon Musk-led SpaceX acquired another Musk-led company: xAI, which also owned X, formerly known as Twitter. While I'm not concerned about the social media platform, I am more excited about Grok, the large language model that's associated with it.
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Grok has become one of the most popular large language models (LLMs) to deploy and is among the best at maintaining up-to-date information, as it sources data from X for real-time updates, something other AI models don't do. Several companies are clearly finding value in these AI models, as SpaceX's AI division revenue has exploded over the past year. In Q2, it grew at an impressive 213% year-over-year pace. I wouldn't be surprised to see the AI segment's growth rate accelerate over the next few quarters, turning it into SpaceX's largest division by revenue.
SpaceX management appears to be thinking along the same lines, as it spent $15.8 billion on capital expenditures for its AI division during Q2. For reference, the other two divisions had $2.5 billion in combined capex.
This will lead to strong long-term growth as long as its technology maintains its position near the top of the LLM market. But does that make SpaceX an investable stock?
SpaceX has a lot of growth priced in SpaceX stock is far from cheap. It has a $2.1 trillion market cap and is expected to generate nearly $50 billion in revenue this year. While that may sound like a lot, the reality is that companies of similar size outclass it. Taiwan Semiconductor Manufacturing has a market cap of $2.4 trillion and generated over $40 billion in its most recent quarter. Meta Platforms is a bit smaller than SpaceX by market cap and generated over $60 billion in its most recent quarter. And both of those companies are already highly profitable, while SpaceX is not.
There's clearly a size mismatch here, and SpaceX's business will need to do a ton of growing just to justify its current market cap. Next year, Wall Street analysts estimate SpaceX will generate $113 billion in revenue. While that's closer to the levels its market-cap peers are booking, it would still have a long climb ahead of it to reach parity with them.
So, I'd estimate that there are at least three years of revenue growth baked into SpaceX's stock price right now. That could make the stock dead money for the time being. As a result, I think investors should look to other stocks, especially in the AI realm. SpaceX may be able to turn itself into a viable and profitable business, but its stock is so pricey today that it may not provide the returns investors want in the next few years.
SpaceX announced on Friday an agreement to purchase a nationwide spectrum portfolio. Madison Rezaei, Bernstein Communications Infrastructure senior analyst, joins 'The Exchange' to discuss how that announcement is impacting telecom stocks.
Space Exploration Technologies (SPCX +1.25%) just went public in June, and after several months of volatility, the stock is up by about 20% from its IPO price and 8% from its opening price on its first day of trading. Yet although it's currently less than $162 per share, some investors are speculating about a potential stock split.
Companies can split their stocks at any time, so such an event is possible, even if it's unlikely at current levels. Nonetheless, one scenario could make SpaceX management consider implementing one sooner rather than later.
Image source: The Motley Fool.
The SpaceX stock-split scenario I do not personally think a SpaceX stock split will occur anytime soon. I base this call on its price-to-sales (P/S) ratio of 103, a premium level that makes the space stock a risky buy. Nonetheless, speculation has emerged about a scenario that could prove me wrong: a merger with Tesla.
Indeed, SpaceX could go a long way toward reducing its sales valuation premium without Tesla. Analysts forecast that the space company will book revenue of $45 billion for 2026. At the current market cap of around $2.2 trillion, that gives it a forward P/S ratio of 49.
If one combines that with Tesla's sales, the forecast 2026 revenue rises to $152 billion. At a combined $3.7 trillion market cap, that would be a forward P/S ratio of 24.
At their current market caps, a combined SpaceX and Tesla would be priced at around $282 per share. Raising the P/S ratio to 107 for this hypothetical combined company would presumably lead to a stock price of around $1,260 per share, placing it into stock-split territory.
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Valuations are key to the stock split scenario The conditions under which a stock split would be warranted rest on SpaceX maintaining its triple-digit P/S ratio.
The average P/S ratio for the S&P 500 (^GSPC +0.59%) is 3.9, so that remains a significant premium. Nonetheless, P/S ratios in the neighborhood of 24 are common for higher-growth stocks on the cutting edge of tech, but if that takes the price to only $282 per share, a stock split is unlikely.
Moreover, SpaceX would have to buck a historical trend set by Nvidia. For now, Nvidia holds the market cap record, with a peak value above $5.7 trillion.
However, despite its phenomenal success over the last four years, Nvidia's P/S ratio peaked at 45 in mid-2023. Even with its continued successes, its P/S ratio has dropped to 19, and its high market cap was a likely factor in that multiple compression.
If SpaceX falls to 19 times sales, the stock price would fall further without significant additional revenue growth. Thus, even though the SpaceX stock-split watch could be closer than one might think from a certain point of view, investors should not look for such a move anytime soon.
SpaceX Corp (NASDAQ:SPCX) is buying 14 MHz of 800 MHz spectrum from Grain Management, giving Starlink Mobile the low-band coverage layer UBS says it needs to build a terrestrial network reaching dense urban areas and building interiors that its satellites cannot.
The analysts view low-band spectrum as key because of its superior coverage characteristics.
Together with its pending EchoStar purchases, the deal would give Starlink about 77 MHz of spectrum on average across the top 100 U.S. markets, including 14 MHz of low-band. UBS called that substantial for an early-stage wireless company, though well below the 300 MHz to 350 MHz each major carrier holds, and it sees no obstacles to regulatory approval because the airwaves work with existing handsets.
The FCC has approved Starlink Mobile’s Gen2 constellation of 15,000 direct-to-device satellites in the 2 GHz band, which UBS expects to deliver more than 100 times the current system’s bandwidth, with launches starting in the second half of 2027 once the EchoStar spectrum becomes available.
On the industry impact, UBS said the AT&T, Verizon and T-Mobile share decline of 7% to 8% looks overdone. It noted that it will take time for SpaceX to scale its wireless ambitions and that the impact on near-term industry fundamentals is limited.
For SpaceX, UBS sees an incremental positive as the company scales its high-margin connectivity business.
Space Exploration Technologies Corp (SPCX +0.20%) recently announced plans to acquire a low-band spectrum portfolio that will better enable it to broadcast the internet through walls and other solid structures.
SpaceX is acquiring the portfolio from the communications infrastructure company Grain Management for reportedly $8 billion. The deal requires regulatory approval from the U.S. Federal Communications Commission.
In a statement, SpaceX said the acquired portfolio contains up to 14 megahertz of paired spectrum in the 800 MHz band.
"This is the last critical piece of the spectrum puzzle needed for SpaceX to provide complete phone coverage in America," SpaceX Founder Elon Musk wrote on X.
Here's why this is great news for SpaceX investors and bad news for traditional telecom investors.
Image source: The White House.
Starlink is now more of a threatSpaceX's low-Earth-orbit satellite internet network, Starlink, has made waves, particularly in rural areas, where it has an edge over the big three telecom players, Verizon, AT&T, and T-Mobile.
Because rural areas have less internet infrastructure, such as cell towers and fiber, Starlink's satellite coverage is often superior. It can also provide service in dead zones where the carriers have no signal.
Starlink was available in over 200 countries and had garnered over 12 million subscribers as of June 30.
But SpaceX still needs spectrum to transmit signals. Prior to this deal, the company had purchased mid-band spectrum for wireless transmission and high-band spectrum for data transmission.
The low-band spectrum is well-suited for carrying signals over long distances and through walls and other solid structures, which could improve indoor performance for Starlink Mobile once SpaceX builds out a ground network.
This could eventually make SpaceX more competitive in the mobile market, which is why shares of Verizon, AT&T, and T-Mobile were all getting hit hard on news of the deal.
The traditional telecom players make most of their money from wireless and mobile service plans, so just the threat of a new competitor will spook investors.
Now, this doesn't mean SpaceX will be able to compete overnight, because it still takes time to build out a ground network for mobile service, including installing antennas on towers and rooftops, equipment to connect them, and other issues, such as ensuring all phones are compatible.
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"We do not expect SpaceX to materially impact operating results of the big-3 Telcos until at least 2029," Citigroup analyst Michael Rollins wrote in a research note, according to Barrons. "Whether the aspirations are to be in the device-to-device or device-to-cell market is still up for debate, but as we have said before: It sounds bad, and we can't disprove it, so the negative narrative is expected to rule the day."
A shifting industryFrom a financial perspective, Starlink is currently the best-performing business at SpaceX, so the potential to offer enhanced mobile service is great news for investors.
While all the hype surrounding SpaceX involves artificial intelligence, Starlink is the most proven business, and Musk said on SpaceX's last earnings call that he thinks Starlink at some point "will deliver a majority of the world's Internet."
Meanwhile, investors view the traditional carriers as operating in mature, slow-growing businesses, and all have significant debt. The potential emergence of Starlink as a key mobile competitor is the last thing these companies need.
It may force them to cut prices to defend their market position. Again, it's still hard to know SpaceX's exact plan or how long it will take them to build out their ground network, but investors are in the business of predicting the future, so they have to try to look ahead.
FCC Chairman Brendan Carr joins 'Squawk on the Street' to discuss SpaceX's deal to acquire a nationwide spectrum portfolio, Disney's battle over free speech protections, and more.
SpaceX SPCX is experiencing a rebound of approximately 3% after announcing its acquisition of Grain Management’s nationwide 800 MHz spectrum portfolio. This move enhances Starlink Mobile's potential to become a significant player in the U.S. wireless market. The recovery comes after a sharp decline linked to broader weaknesses in the AI sector and ongoing concerns about capital spending. The spectrum deal is exerting pressure on established carriers while benefiting tower operators.
SPCX will acquire 100% of Grain’s portfolio, which includes up to 14 MHz of paired low-band spectrum, pending FCC approval and standard closing conditions. While official financial terms were not disclosed, reports estimate the transaction's value at around $8 billion. The newly acquired spectrum will help close coverage gaps in Starlink’s planned hybrid satellite-and-terrestrial network. Its low-band frequencies will enhance coverage and penetration through buildings, complementing the capacity from Starlink’s 2 GHz mid-band spectrum. Reliable indoor service will require terrestrial infrastructure in addition to satellites. This acquisition will add spectrum costs and terrestrial deployment requirements to SPCX’s investment strategy. Although SPCX has $100 billion in liquidity as of the last quarter, the costs associated with the acquisition, network development, and customer acquisition may delay significant mobile revenue. Therefore, deployment economics and returns will be crucial, potentially outweighing subscriber growth. Major carriers such as AT&T T, Verizon VZ, and T-Mobile TMUS are seeing significant declines in their stock prices as the agreement positions a new nationwide competitor. This introduces potential challenges in subscriber retention, pricing, and promotional spending, although competition may develop gradually, and existing Starlink partnerships could coexist with the new competition. However, owning the spectrum does not guarantee a commercially viable network. On the other hand, American Tower AMT, Crown Castle CCI, and SBA Communications SBAC are experiencing gains, as Starlink’s terrestrial plans could create a new substantial tenant. Leasing existing sites could speed up deployment and generate additional rental income with attractive margins, although the benefits will depend on actual leasing commitments and the scale of deployment.The acquisition significantly enhances Starlink's ability to compete beyond just supplemental satellite coverage by integrating extensive geographic reach with terrestrial services, where indoor access and capacity are critical. This creates contrasting implications across the telecom landscape: established carriers may face a new competitor, while tower owners could provide the necessary infrastructure to support this challenge. For SPCX, the potential for a larger recurring revenue market is promising, but successful execution will hinge on regulatory approvals, compatible devices, network deployment, pricing strategies, and customer acquisition efforts. Although tower leasing could expedite deployment, it will also introduce recurring costs that must be managed within the mobile service economics.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
Shares of American Tower (AMT +8.01%) are standing tall today. As of 11:35 a.m. ET, the wireless infrastructure giant was up 8.6% on another company's news.
Image source: Getty Images.
Why a spectrum deal lifts tower stocksThe catalyst here is Space Exploration Technologies (SPCX +1.17%) agreeing to spend $8 billion on a high-quality radio spectrum portfolio.
Private equity firm Grain Management's nationwide patchwork of spectrum licenses in the 800-MHz range sets SpaceX up to create a terrestrial cellphone network. Wireless infrastructure players like American Tower surged on the news, while U.S. and European cell network leaders fell.
The ink is still drying on the Grain portfolio deal, so it's a bit early to speculate how SpaceX plans to implement the phone network. However, it's almost impossible to start a nationwide network in America without American Tower's services.
Furthermore, 800-MHz signals are top-notch communications network material, with long range and good building penetration. American Tower has a ton of existing infrastructure in this category, making it easy to add another tenant.
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Towers win no matter who builds the networkAfter a weak summer, American Tower's shares are now back to prices last seen in early June.
At the same time, the trailing dividend yield is up to 3.9%, recently reaching an all-time high of 4.4%. Today's price jump pushed the yield down, but American Tower keeps funneling cash flows into its payouts. With or without significant SpaceX lease contracts, American Tower remains an effective income stock for long-term investors.
And the rumor mill is probably on the right track today, so the company should benefit from increased competition and another deep-pocketed customer in the domestic cell service market.
Anders Bylund has positions in American Tower. The Motley Fool has positions in and recommends American Tower. The Motley Fool has a disclosure policy.
Space Exploration Technologies Corp. (SPCX - Free Report) has inked a definitive agreement to acquire Grain Management's nationwide 800 MHz spectrum portfolio in a concerted effort to augment its position in the U.S. wireless communications market. The transaction represents a significant step toward expanding SpaceX's Starlink Mobile business beyond satellite-based connectivity into an integrated satellite and terrestrial wireless network.
The acquisition includes up to 14 megahertz of paired low-band spectrum, which is particularly valuable for its wide-area coverage and ability to penetrate buildings and other physical obstacles. The transaction, subject to Federal Communications Commission (“FCC”) approval and customary closing conditions, should help SpaceX address critical coverage limitations, improve network reliability and strengthen its competitive position against established wireless operators.
The Transaction RationaleThe buyout is important because low-band spectrum provides superior propagation characteristics compared with higher-frequency bands. While SpaceX's existing satellite infrastructure can deliver connectivity across remote and underserved regions, maintaining reliable connections inside buildings and densely populated areas remains challenging.
The newly acquired 800 MHz spectrum should help address these limitations by enabling Starlink Mobile to establish a terrestrial coverage layer alongside its satellite constellation. This hybrid approach could improve indoor connectivity, reduce service interruptions and provide customers with a more consistent wireless experience.
Moreover, the spectrum complements SpaceX's previously announced acquisition of wireless spectrum assets from EchoStar, including 2 GHz frequencies. While the 2 GHz spectrum supports higher-capacity satellite-to-device communications, the 800 MHz frequencies can provide broader terrestrial coverage and better penetration through physical obstacles. The combination should strengthen SpaceX's ability to deliver an integrated wireless offering, potentially expanding its addressable market beyond satellite broadband subscribers to mainstream mobile users.
Starlink Expansion to Unlock Growth OpportunitiesThe acquisition supports SpaceX's broader ambition to establish Starlink Mobile as a major U.S. wireless operator. The company recently received FCC authorization to deploy an additional 15,000 next-generation satellites, providing substantial scope to expand its direct-to-device capabilities.
The integrated network is likely to attract enterprise customers requiring reliable connectivity across geographically dispersed operations, including transportation, logistics and critical infrastructure. Over time, broader service availability and improved network performance could support subscriber additions, higher service adoption and incremental monetization opportunities.
Growing adoption of Starlink services increases the share of recurring subscription revenue in SpaceX’s overall business mix, reducing its dependence on the comparatively project-driven launch business. Improved revenue visibility could support stronger margins and more predictable cash flows over the long run.
Secular Trend of High Global Connectivity Lends SupportDemand for data transmission continues to grow as cloud computing, AI, autonomous systems and connected devices proliferate worldwide. Satellite communications could become an increasingly important component of this infrastructure, particularly in areas where terrestrial broadband remains inadequate. Starlink's global network gives SpaceX exposure to this secular trend.
The company plans to deploy AI compute satellites as early as 2028, effectively creating space-based data centers capable of delivering large-scale computing capacity. This initiative leverages SpaceX's leadership in satellite deployment while addressing the growing demand for AI computing resources. Alongside its satellite ambitions, SpaceX continues to expand its Colossus data center platform, strengthening its position in AI infrastructure. The buyout of Anysphere – a startup firm behind the rapidly growing AI coding assistant Cursor – gives SpaceX exposure to a high-growth software business while strengthening its AI capabilities. It adds a widely adopted developer platform that could complement the company's growing technology portfolio.
Estimate Revision TrendThe Zacks Consensus Estimate for SpaceX’s 2026 earnings has increased a stellar 350% in the past 60 days to 9 cents per share. The same for 2027 earnings has improved 17.4% to $1.96. The positive estimate revision depicts bullish sentiment about the stock’s growth potential.
Image Source: Zacks Investment Research
Price PerformanceSpaceX has declined 0.2% since its IPO against the industry’s growth of 145.8% over the past month. It has lagged AT&T Inc. (T - Free Report) , but outperformed Verizon Communications Inc. (VZ - Free Report) over this period. While Verizon declined 3.6%, AT&T is up 5.5%.
SPCX Stock Price Performance Since IPO
Image Source: Zacks Investment Research
End NoteSpaceX is steadily transforming from a pure-play aerospace company into a diversified AI infrastructure leader. By combining expanded satellite capacity with terrestrial spectrum, the company could deliver differentiated connectivity across urban, suburban and rural markets. This architecture may reduce dependence on traditional wireless partners while creating opportunities for direct customer relationships and additional recurring subscription revenues.
SpaceX currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With healthy growth dynamics and a favorable Zacks Rank, SpaceX appears primed for further stock price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock now.
Elon Musk’s SpaceX is moving to get into the cell phone business — scooping up billions of dollars’ worth of cellular spectrum licenses and putting traditional telecom giants on the defensive.
Musk’s company reached an $8 billion deal for the licenses this week, laying the groundwork for a terrestrial network that would fill in gaps in coverage by SpaceX’s satellite service Starlink.
Putting the spectrum to use requires Federal Communications Commission approval — a step the body’s chair seemed enthusiastic about.
Starlink Mobile is poised to join a small group of cell providers in the US. REUTERS “President Trump is unleashing a new Golden Age of connectivity in America,” FCC Chairman Brendan Carr wrote on X on Thursday night, commenting on an article about Musk’s latest venture.
Asked about the deal Friday on CNBC, he said the commission is going to “sit back and watch” Musk’s next steps.
Telecom giants were less enthusiastic — shares in AT&T, T-Mobile and Verizon were all down Friday morning.
SpaceX said once it gets FCC approval, the company will deploy a “flexible architecture combining our satellite-to-mobile constellation in space.”
The idea is to use both traditional, on-the-ground cell towers and SpaceX’s vast array of satellites for a new cell super service.
Starlink Earlier this week, the FCC approved SpaceX’s effort to send up to 15,000 satellites for cellular service, the Wall Street Journal noted.
Details on pricing and availability for Starlink Mobile remain a long way off. The company did not answer a request for comment.
While the announcement spooked some investors, Verizon voiced confidence in the face of a potential major new competitor.
This undated handout image shows Starlink Mobile’s next-generation V2 satellites, which are designed to deliver 5G speeds from space. Starlink “A company can have billions of dollars of spectrum, but if they do not have the network to use it, it’s just empty airwaves,” a Verizon spokesperson told the Post.
The spectrum announcement helped bump SpaceX shares to a level investors haven’t seen since July, trading around $163, or up 1.6%, on Friday.
AT&T did not respond to a request for comment. T-Mobile, a company that already has an internet relationship with Starlink, denied to comment.
President Donald Trump purchased up to $5 million in SpaceX (NASDAQ: SPCX) bonds just two days before signing a major order to accelerate the U.S. commercial space industry.
According to a disclosure released on October 8, Trump bought $1-5 million worth of senior unsecured SpaceX bonds on August 18, two days before signing a memorandum to usher in a “golden age” of American space transportation.
More precisely, the initiative seeks to expand launch and reentry activity on U.S. soil to more than 1,000 operations annually by 2030, partly by speeding up permitting procedures and environmental reviews. The securities themselves mature in July 2031 and carry an interest rate of 5.35%.
This is how much Trump is up on SpaceX stock SpaceX stock was trading at $160 at the press time, October 9, having gained nearly 12% since Trump made his purchase.
SpaceX stock price one-month chart. Source: Finbold Elon Musk’s space company, naturally, stands to benefit from the policies intended to reduce regulatory barriers for commercial space operators, so the timing behind Trump’s bond move has renewed concerns about potential conflicts of interest.
However, the White House has maintained in the past that Trump does not personally direct his investment decisions, with his stock and bond portfolio independently managed by third-party financial institutions through discretionary accounts.
The SpaceX transaction was also just one of more than 500 trades the president made in August, according to the same disclosures. Other notable moves included up to $25 million in Meta (NASDAQ: META) and up to $6 million in Microsoft (NASDAQ: MSFT) stock.
Overall, while the filings indeed do not pove that Trump’s bond purchase influenced the administration’s space policy, the timing has nonetheless intensified scrutiny of how the president’s portfolio is managed while his administration makes decisions that could affect companies in which he invests.
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Item 1 of 3 Major General Michael Traut, Commander of German Space Command, in an interview with Reuters during Space Summit 2026 at the Changi Aviation Summit at Sands Expo and Convention Centre in Singapore February 2, 2026. REUTERS/Caroline Chia/File Photo
[1/3]Major General Michael Traut, Commander of German Space Command, in an interview with Reuters during Space Summit 2026 at the Changi Aviation Summit at Sands Expo and Convention Centre in Singapore... Purchase Licensing Rights, opens new tab Read more
SummaryCompaniesRussian satellite activity raises concerns for Starlink, German space commander tells ReutersMoscow's ability to coordinate multiple spacecraft could be used to target satellites, commander saysConcerns highlight militaries' growing reliance on commercial satellite networksPARIS, Oct 9 (Reuters) - The shadowing of a Western satellite supporting Ukraine by a cluster of Russian military satellites earlier this year demonstrates capabilities that could threaten commercial constellations such as Elon Musk's Starlink, Germany’s space commander told Reuters.
In May, Russia manoeuvred four military satellites, known as Cosmos 2610 through 2613, close to a commercial radar-imaging satellite, according to the US Space Force. Finland's ICEYE, which supplies data to the US and its allies, confirmed to Reuters that it was one of their satellites.
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Major General Michael Traut, head of German space command, described the Russian spacecraft as “chasing” the ICEYE satellite, which provides battlefield intelligence imagery.
"Russia is demonstrating ways, which, if employed directly towards a mega constellation like Starlink, could have an impact on their lifetime" and on the quality of service for all users, not just Ukraine, General Traut told Reuters. He said satellite capabilities could be disrupted even without a direct attack.
That “concerns me quite a lot,” he said.
His fears underscore Western militaries' growing reliance on commercial satellite networks, raising questions about who should protect them. Traut's comments also come as European officials accuse Russia of escalating sabotage efforts across the region aimed at undermining support for Ukraine, including recent drone and arson attacks and a plot to disable undersea cables.
Russia’s interference in Western space systems has significantly increased since its 2022 full-scale invasion of Ukraine, according to Western military officials. They say that includes ground-based jamming and on-orbit trailing, opens new tab aimed at gathering intelligence and testing the West's tolerance.
Russia’s defence ministry did not respond to Reuters' questions about its satellite activity. Moscow has repeatedly warned that commercial Western satellites helping Ukraine could become legitimate targets for retaliation. It has denied conducting sabotage operations in NATO countries.
SpaceX, which operates Starlink, didn’t respond to a comment request.
RUSSIAN 'GREY-ZONE' TACTICSGeneral Traut said an overt attack on a Starlink satellite would mark a major escalation but Moscow could employ "grey-zone" tactics. He outlined a hypothetical scenario in which a Russian satellite drifted into a Starlink orbital path before breaking apart, forcing satellites to make fuel-consuming avoidance manoeuvres that could shorten their operational lives.
Two other Western officials told Reuters the Russian activity raised concerns for Starlink, the world's largest satellite constellation.
Russia hasn’t disclosed the capabilities of the group of Cosmos satellites.
The move into "close proximity" with ICEYE may have been intended to conduct surveillance, prepare for future interference or signal capability, said Belinda Marchand, chief scientist at US space intelligence firm Slingshot Aerospace.
ICEYE Chief Executive Rafal Modrzewski told Reuters the company later moved its satellite, prompting further Russian manoeuvres. The episode showed how satellites can increasingly be manoeuvred close to one another "either to observe or potentially do harm," he said. The episode emphasizes the need to monitor activity in orbit, Modrzewski said, and raises about the need for protection.
As part of a major spending plan to bolster its own space capabilities, Germany is developing inspector satellites and considering orbital weapons that could disrupt hostile space activity without destroying the target, Traut said.
Germany's armed forces have also awarded ICEYE and a German company a contract to build dozens of satellites, particularly to support NATO's eastern flank.
Cassell Bryan-Low and John Irish reporting in Paris; additional reporting by Sarah McFarlane in London; Editing by Joe Brock and Toby Chopra
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Though SpaceX (NASDAQ: SPCX) executed its initial public offering (IPO) at a record valuation of $1.77 trillion, it nonetheless managed to grow even larger to over $2.1 trillion by press time on October 9, 2026.
Indeed, investors who managed to fill their orders during the IPO itself would have acquired SPCX stock at $135 per share. Thus, with SpaceX equity trading at press time in the Friday pre-market at $166.69, a $1,000 early investment would have grown to $1,234.74 for a $234.74 profit.
Similarly, thanks to the early October rally, SPCX stands above its day-one open and close.
Investing $1,000 in Elon Musk’s newer public company on the morning of June 12 would have meant paying roughly $150 per share, meaning one would have seen their position appreciate 11.13% to $1,111.27.
Buying on the evening of the same day would have meant paying $160.95, leading to a 3.57% – $35.67 – increase in the value of the position to $1,035.67.
SpaceX stock price performance. Source: Google What’s next for SpaceX stock investors? Still, the recent success does not necessarily indicate that investors who purchased SpaceX stock at its IPO are guaranteed to remain in the green long-term.
So far, SPCX shares have proved exceptionally volatile as they soared to $225.64 mere days after hitting the market and then fell to $104.83 in less than two months for a $120.81 difference between the extremes.
More recent trading has also been following a similar pattern. After ending September at $150.86, SpaceX equity rallied to $171.92 by October 6, then fell to $160.57 at the latest close and then rose another 3.81% to $166.69 by press time in the Friday pre-market.
The SpaceX stock price long-term forecast The long-term picture is likewise unclear. On the one hand, there has been a strong bias toward bullishness for SPCX stock, with the average Wall Street price target estimating a rise to $216.21.
Elon Musk’s own recent remarks also demonstrate an astronomical degree of optimism, with the world’s first trillionaire making an X post in which he claimed he sees ‘a path to SpaceX being worth orders of magnitude more than the current Earth economy.’
This will sound super crazy, but I see a path to SpaceX being worth orders of magnitude more than the current Earth economy
— Elon Musk (@elonmusk) October 8, 2026 While the parallel is imperfect, the world’s GDP is estimated at roughly $126 trillion, meaning the forecast – for the indeterminate future – indicates SPCX could hit a market capitalization in the tens of quadrillions and the share price, assuming no splits, would approach $1 million.
Meanwhile, SpaceX has also not been bereft of bearish assessments. As impressive as the firm’s rocket technology is, the gap between the firm’s valuation and revenue remains vast, and some reputable companies – such as Morningstar – have set a crash to $70 per share as their base case for the equity.
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Buyers are stepping in Friday morning after Thursday closed lower, according to Kevin Green. A report that OpenAI will have $20 billion less in annualized revenue than previously reported sparked Thursday's selloff, though another news outlet is pushing back on that Friday.
Space Exploration Technologies Corp (NASDAQ:SPCX) sees its next major growth opportunity in monthly phone bills.
With Starlink moving toward a nationwide mobile network, the Elon Musk-led rocket and satellite company is positioning itself to challenge the carriers that connect millions of Americans.
Musk made his ambitious prediction in an Oct. 8 post on X.
SpaceX has already agreed to acquire Grain Management‘s nationwide portfolio of low-band wireless spectrum licenses, advancing its push to compete with Verizon Communications Inc. (NYSE:VZ), AT&T Inc. (NYSE:T) and T-Mobile Us Inc (NASDAQ:TMUS).
The agreement covers spectrum in the 800 MHz band and remains subject to approval by the Federal Communications Commission. SpaceX’s official announcement says the licenses will complement Starlink Mobile’s existing satellite capabilities with terrestrial connectivity.
The technical distinction matters. Low-band signals can travel farther and penetrate obstacles like walls more effectively than higher-frequency signals. SpaceX says combining these frequencies with its satellite network could deliver indoor and outdoor connectivity, addressing a persistent limitation of satellite-to-phone services.
The FCC has also authorized SpaceX to deploy 15,000 next-generation Starlink satellites optimized for mobile connectivity. Together, the spectrum acquisition and satellite expansion move the company closer to offering a more comprehensive mobile service.
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The Phone Bill Is the PrizeStarlink has built a substantial satellite broadband business, but competing for mainstream wireless subscribers opens a different market. Rather than serving primarily as an alternative where terrestrial coverage is weak, SpaceX could eventually compete for customers who already pay established carriers every month.
That creates a new challenge for telecom investors. If Starlink Mobile offers competitive pricing and reliable coverage, traditional carriers could face pressure on subscriber growth, pricing power or both. The risk is particularly relevant in a mature market where attracting customers from competitors can be difficult and expensive.
Still, spectrum licenses and satellites do not automatically produce a successful nationwide network. SpaceX must demonstrate sufficient capacity, reliable service and attractive pricing while navigating regulatory requirements. Established carriers also have extensive terrestrial infrastructure and existing customer relationships.
What Investors Should WatchInvestors should watch for regulatory approval, launch timelines, pricing announcements and evidence of customer adoption. Musk’s ambition may extend beyond Earth, but the next test is decidedly terrestrial: whether SpaceX can persuade consumers to switch networks — or pay less to stay connected.
SpaceX just locked up a nationwide low-band spectrum portfolio that AST SpaceMobile had been chasing, and the fallout for direct-to-device satellite stocks raises questions about who controls the airwaves needed to connect ordinary phones from orbit.
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AST SpaceMobile (NASDAQ:ASTS) shares are falling after a larger rival secured low-band frequencies the company had pursued. SpaceX (NASDAQ:SPCX | SPCX Price Prediction) agreed to acquire a nationwide portfolio of low-band spectrum from a privately held owner, a move that tightens competition for satellite links to ordinary phones. Losing that option removes one potential path for AST SpaceMobile to expand its low-band capacity.
AST SpaceMobile stock is at $53.67, down 6% this morning. Meanwhile, Rocket Lab (NASDAQ:RKLB) stock is at $67.52, down 1%, a much less severe drawdown when compared to AST SpaceMobile shares. Planet Labs (NYSE:PL) stock trades at $16.81, down 2%.
The Procure Space ETF (NASDAQ:UFO) is up 0.18% to $42.08. A space fund ticking higher while AST SpaceMobile stock falls quickly marks the selling as an ASTS repricing rather than a move across all space names. That difference points back to the specific spectrum exposure AST SpaceMobile carries as a direct-to-device operator.
SpaceX Claims Spectrum AST SpaceMobile Wanted Grain Management, the privately held spectrum owner, stated that SpaceX would acquire its entire nationwide low-band spectrum portfolio. Completing the deal still requires regulatory approval, and its terms were left undisclosed. AST SpaceMobile had pursued those same frequencies, so the agreement closes off a potential source of additional low-band spectrum while leaving the company’s existing commercial carrier arrangements unchanged.
The mid-band side of AST SpaceMobile’s spectrum plan carries more weight now, since the company already has deals in place there. Through definitive agreements with Ligado Networks, a privately held satellite communications firm, AST SpaceMobile holds long-term access to lower mid-band spectrum in the U.S. and Canada. Telecom analyst Roger Entner of Recon Analytics noted after the announcement that Ligado is next, a view that puts AST SpaceMobile’s agreements with the firm in focus.
Launch and Imaging Names Stay Clear of the Spectrum Race AST SpaceMobile sells satellite service to standard phones through carriers that keep the customer relationship, and low-band frequencies carry signals far and through buildings, which suits direct satellite links to phones indoors.
Rocket Lab sells launch services and spacecraft hardware, and Planet Labs operates an Earth imaging constellation. Neither relies on direct-to-device spectrum. The bull case for Rocket Lab is clear: its launch and hardware business sits outside the spectrum fight, and the bear case is that SpaceX remains a far larger launch rival. For Planet Labs, the bull case is an imaging business insulated from spectrum disputes, while the bear case is that its quiet move signals little near-term enthusiasm.
On the bearish side for AST SpaceMobile, a well-funded rival has taken spectrum the company wanted and could compete directly for the phone users AST SpaceMobile reaches through its carrier partners.
Optimists could argue the same threat gives carriers reason to strengthen ties with AST SpaceMobile, a partner that extends coverage without taking their customers.
What to Watch Next Regulatory approval is the next checkpoint for the Grain Management transaction. Shareholders can watch for whether regulators sign off and whether the parties disclose the terms.
Ligado is the second open question after Entner’s comment. Any change to AST SpaceMobile’s Ligado agreements could matter more to its spectrum plan than the low-band portfolio that went to SpaceX.
Contact [email protected] for any questions or corrections.
SpaceX is acquiring a crucial swath of spectrum from Grain Management. The new spectrum allows SpaceX to beam cell service to devices indoors from its Starlink network of satellites and will be combined with a terrestrial network to connect devices everywhere.
Galvin Gaustad & Stein LLC bought a new stake in SpaceX (NASDAQ:SPCX – Free Report) during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm bought 16,843 shares of the company’s stock, valued at approximately $2,541,000.
Other institutional investors have also modified their holdings of the company. Grove Bank & Trust purchased a new stake in shares of SpaceX during the third quarter worth approximately $344,000. Wisconsin Wealth Advisors LLC purchased a new position in SpaceX in the 3rd quarter valued at $929,000. Sapient Capital LLC acquired a new position in SpaceX in the 3rd quarter valued at $3,541,000. Atwood & Palmer Inc. raised its position in SpaceX by 239.5% during the 3rd quarter. Atwood & Palmer Inc. now owns 567 shares of the company’s stock worth $86,000 after buying an additional 400 shares during the last quarter. Finally, Artemis Investment Management LLP purchased a new position in SpaceX during the 3rd quarter worth $19,385,000.
SpaceX News Roundup Here are the key news stories impacting SpaceX this week:
Positive Sentiment: SpaceX agreed to acquire nationwide 800 MHz low-band spectrum licenses from Grain Management, giving Starlink a path to expand into indoor cellular coverage and compete more directly with AT&T, Verizon and T-Mobile. The deal remains subject to final FCC approval. SpaceX Acquires Nationwide Spectrum Licenses Positive Sentiment: The FCC approved SpaceX’s next-generation Starlink Mobile constellation of up to 15,000 satellites and waived a ground-carrier leasing requirement, strengthening the company’s direct-to-device strategy. FCC Approval for 15,000 Starlink Satellites Positive Sentiment: American Airlines plans to install Starlink internet on more than 1,000 aircraft, adding a substantial commercial customer and supporting recurring connectivity revenue. American Airlines to Add Starlink Neutral Sentiment: Elon Musk said he sees a path for SpaceX to reach a valuation in the “tens of trillions,” a bullish long-term forecast but one that offers no near-term financial guidance. Musk’s SpaceX Valuation Prediction Negative Sentiment: Reports that SpaceX may raise approximately $40 billion in loans and bonds to purchase Nvidia AI chips intensified concerns about leverage, capital allocation and the risk of spending heavily before AI-compute demand and returns are proven. Credit-default swap costs reportedly reached record levels. Apollo and Banks Discuss SpaceX Financing Negative Sentiment: Up to 328.4 million shares are scheduled to become eligible for sale on October 9, creating a potential increase in trading supply and selling pressure. SpaceX Share Unlock Negative Sentiment: Starlink’s India launch remains stalled amid a public dispute with local telecom interests and regulators, delaying access to a major potential market. Starlink India Launch Dispute Analyst Upgrades and Downgrades Several analysts have recently weighed in on SPCX shares. UBS Group reaffirmed a “buy” rating on shares of SpaceX in a report on Tuesday, September 29th. William Blair reissued an “outperform” rating on shares of SpaceX in a report on Friday, September 11th. New Street Research raised SpaceX to a “strong-buy” rating in a report on Thursday, June 11th. Mizuho started coverage on SpaceX in a research report on Tuesday, July 7th. They set an “outperform” rating and a $200.00 target price on the stock. Finally, Cfra started coverage on SpaceX in a research note on Friday, June 12th. They set a “sell” rating and a $115.00 target price for the company. Three analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating, nine have issued a Hold rating and six have issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $219.77. Check Out Our Latest Research Report on SpaceX
Insider Buying and Selling In related news, COO Gwynne Shotwell sold 342,170 shares of the stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $153.57, for a total value of $52,547,046.90. Following the sale, the chief operating officer directly owned 2,472,035 shares of the company’s stock, valued at approximately $379,630,414.95. This represents a 12.16% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
SpaceX Stock Performance Shares of SPCX stock opened at $160.57 on Friday. The business’s fifty day moving average price is $143.95. The company has a debt-to-equity ratio of 0.29, a quick ratio of 4.99 and a current ratio of 5.12. The firm has a market capitalization of $2.12 trillion and a PE ratio of -1,784.11. SpaceX has a 1 year low of $104.83 and a 1 year high of $225.64.
SpaceX (NASDAQ:SPCX – Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported ($0.09) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.26) by $0.17. The firm had revenue of $7.81 billion during the quarter. SpaceX’s revenue was up 91.9% on a year-over-year basis. As a group, equities research analysts predict that SpaceX will post 0.09 earnings per share for the current year.
About SpaceX (Free Report)
Space Exploration Technologies Corp. (SpaceX) is a privately held aerospace company founded in 2002 by Elon Musk. The company develops and operates launch vehicles, spacecraft and satellite systems designed to reduce the cost of access to space and support commercial, government and scientific missions.
SpaceX’s primary products and services include the Falcon 9 and Falcon Heavy launch vehicles, the Dragon spacecraft and the Starlink satellite internet network. The company also is developing Starship, a fully reusable launch and spacecraft system intended for missions to Earth orbit, the Moon and Mars.
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The SpaceX logo in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesT-Mobile, Verizon lead losses among S&P 500 stocks early onEurope's telecoms sector falls to lowest level since JanuaryOct 9 (Reuters) - US and European telecom stocks tumbled on Friday after SpaceX's acquisition of low-band spectrum heightened concerns over growing competition from satellite-based mobile services.
T-Mobile US (TMUS.O), opens new tab, Verizon (VZ.N), opens new tab and AT&T (T.N), opens new tab fell between 5.5% and 7.4% in premarket trading, while the STOXX Europe 600 Telecommunications index (.SXKP), opens new tab dropped over 2% to its lowest level since January 30.
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Deutsche Telekom (DTEGn.DE), opens new tab, Europe's largest telecom operator by market value, fell 6.5%, while Britain's Vodafone (VOD.L), opens new tab dropped 4.1%, France's Orange (ORAN.PA), opens new tab lost 2.3% and Spain's Telefonica (TEF.MC), opens new tab slipped 3.9%.
The slide came after reports that SpaceX had agreed to acquire private-equity firm Grain Management's nationwide 800 MHz spectrum portfolio in a deal valued at about $8 billion, bolstering the company's ambitions in satellite-to-cellular connectivity.
"We believe the Grain transaction is a clear sign that SpaceX is going to be a more aggressive acquirer of spectrum," Morgan Stanley analysts said in a note, adding that any threat to established carriers is likely to materialize gradually, starting in rural markets.
Low-band spectrum can travel longer distances and penetrate buildings and other obstacles more effectively than higher-frequency airwaves, enabling SpaceX's Starlink Mobile push.
While the companies did not share financial terms of the deal, the Wall Street Journal reported, citing sources, that it is worth $8 billion.
SpaceX shares rose 4% after announcing the acquisition, which remains subject to regulatory approval.
TOWERS BUCK SELLOFFTelecom tower operators bucked the sector-wide selloff, as investors bet SpaceX's wireless ambitions could ultimately drive demand for additional terrestrial infrastructure.
American Tower (AMT.N), opens new tab, Crown Castle (CCI.N), opens new tab and SBA Communications (SBAC.O), opens new tab advanced between 6.7% and 8.3%.
Morgan Stanley said the transaction was "incrementally constructive" for tower operators, noting that even a satellite-centric network could require deployments of towers, rooftops and small cells, while broader urban competition would require substantially more terrestrial infrastructure and spectrum.
Updates prices throughout, adds graphics
Reporting by Rashika Singh and Shashwat Chauhan in Bengaluru; Editing by Mrigank Dhaniwala
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Nearly four months ago, on June 12, Elon Musk's Space Exploration Technologies (SPCX -4.20%), better known as SpaceX, rewrote Wall Street's history books. The $85.7 billion raised from its initial public offering (IPO), including the underwriters' overallotment, and its $1.77 trillion valuation, both blew away the former record holders.
But SpaceX is also rewriting history in other, less desirable ways. Its unconventional share lockup period, coupled with a historically low float, has created a perfect storm for fleecing retail investors.
Image source: Getty Images.
SpaceX's accelerated lockup schedule can weigh on retail investorsNormally, when a private company goes public, it prevents its insiders -- high-ranking executives, board members, and early investors, all of whom may possess non-public information -- from selling shares for the first 180 calendar days. This ensures that insiders can't take advantage of retail investor hype after a company debuts.
Musk's SpaceX ignored convention and outlined a staggered and accelerated share-unlock period for some of its insiders in its mile-long prospectus. Although CEO Elon Musk, who holds a majority of SpaceX's outstanding shares, can't sell any of his shares for 366 calendar days, a long list of early-release-eligible insiders can.
Great look at the SpaceX shares unlock schedule as well as the potential passive buying schedule from @JSeyff @FrancisSharoon Depending on the early post-IPO returns, this could really play with and disperse the returns of "passive" funds (which is why there's arguably no such… pic.twitter.com/KOuEkJlngF
— Eric Balchunas (@EricBalchunas) May 28, 2026 Beginning two calendar days after the company's first quarterly report as a public company on Aug. 4, 20% of early-release-eligible insider shares, about 911.5 million, became available for sale. This event has been followed by several time-based share-unlock events on calendar days 70 (Aug. 20), 90 (Sept. 9), and 105 (Sept. 24), with additional insider unlocks occurring on calendar days 120, 135, and 180.
Today, Oct. 9, marks calendar day 120. Approximately 319 million early-release-eligible insider shares can be sold, starting today, totaling nearly $51 billion in market value. While this doesn't guarantee they'll be sold, early investors haven't had any avenues to cash in their chips for years, if not a full decade... until now.
Image source: Getty Images.
A historically low float is making things worseBut it's not just SpaceX's unconventional share-unlock period that threatens to fleece retail investors. The company's low float (i.e., tradable shares) has also played a role.
When a company goes public, it traditionally sells between 10% and 25% of its outstanding shares (OS). In the days leading up to its record-setting IPO, Space Exploration Technologies priced roughly 555.6 million shares at $135 each. While this might sound like a lot of shares, it represented less than 5% of the company's OS.
What made this low-float situation so unique was that several committees overseeing major indexes -- the Nasdaq-100, Russell 1000, and Russell 3000 -- rewrote their inclusion rules to grant SpaceX fast-track entry. This meant that passive funds scooped up a substantial number of shares shortly after SpaceX's debut, buoying its share price.
Today's Change
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With each new early-release-eligible share-unlock period, SpaceX's float leaps higher, putting additional downside pressure on the company's shares and retail investors.
What we're effectively witnessing is one of the greatest wealth transfers in history -- except it's from retail investors to insiders and not the other way around.
Item 1 of 2 Logo of German telecommunication giant Deutsche Telekom is displayed in Munich, Germany, February 4, 2026. REUTERS/Michaela Stache/File Photo
[1/2]Logo of German telecommunication giant Deutsche Telekom is displayed in Munich, Germany, February 4, 2026. REUTERS/Michaela Stache/File Photo Purchase Licensing Rights, opens new tab
Oct 9 (Reuters) - Shares of Deutsche Telekom (DTEGn.DE), opens new tab were on track for their worst trading day in more than three years on Friday, after SpaceX (SPCX.O), opens new tab on Thursday announced an agreement to buy a nationwide low-band spectrum license portfolio, enabling Starlink Mobile to become a major telecom operator in the US.
The German telecommunications group owns a 54% stake in T-Mobile US (TMUS.O), opens new tab, which could be facing stiffer competition in the United States.
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Deutsche Telekom shares, which have lost around a quarter of their value since a February high, were down 7% at 0919 GMT, at the bottom of Europe's benchmark STOXX 600 index (.STOXX), opens new tab.
"We view the news as ... an ongoing risk for the telecoms and cable stocks," Citi analysts wrote in a note to investors, adding that the risk of SpaceX emerging as a facilities-based competitor has likely contributed to these stocks' recent poor performance.
Stéphane Beyazian, analyst at ODDO BHF, expects SpaceX to be a "big contender" at the US Federal Communications Commission's 2027 spectrum auction, a bidding sale of 160 megahertz of mid-band spectrum in the Upper C-Band.
However, he said Elon Musk's company did not pose an imminent threat to Deutsche Telekom's business.
"Without a roaming agreement with a partner, it will take years before Starlink can build and sell a good quality product," Beyazian told Reuters.
Reporting by Danny Callaghan in Gdansk, editing by Milla Nissi-Prussak
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Gradient Investments LLC purchased a new position in SpaceX (NASDAQ:SPCX – Free Report) in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor purchased 63,267 shares of the company’s stock, valued at approximately $9,545,000.
A number of other institutional investors and hedge funds have also bought and sold shares of SPCX. SC US Ttgp LTD. purchased a new position in shares of SpaceX in the second quarter valued at about $20,933,621,000. Darsana Capital Partners LP purchased a new stake in shares of SpaceX during the second quarter worth about $17,335,783,000. K5 Global Advisor LLC bought a new stake in SpaceX during the 2nd quarter valued at approximately $6,587,531,000. State Street Corp purchased a new position in SpaceX in the 2nd quarter worth approximately $1,858,329,000. Finally, Dragoneer Investment Group LLC purchased a new stake in SpaceX during the 2nd quarter valued at approximately $1,366,880,000.
Analysts Set New Price Targets Several equities analysts have recently commented on the stock. Seaport Research Partners downgraded shares of SpaceX from a “buy” rating to a “neutral” rating in a report on Friday, August 7th. Wells Fargo & Company cut their target price on shares of SpaceX from $215.00 to $212.00 and set an “overweight” rating for the company in a research note on Tuesday, September 8th. Wedbush started coverage on shares of SpaceX in a report on Tuesday, June 30th. They issued an “outperform” rating and a $190.00 price target on the stock. Cantor Fitzgerald reissued an “overweight” rating and set a $246.00 price objective on shares of SpaceX in a report on Wednesday, August 5th. Finally, UBS Group restated a “buy” rating on shares of SpaceX in a research report on Tuesday, September 29th. Three research analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating, nine have issued a Hold rating and six have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $219.77.
Get Our Latest Research Report on SPCX Insider Activity at SpaceX In other news, COO Gwynne Shotwell sold 342,170 shares of the business’s stock in a transaction dated Tuesday, September 22nd. The shares were sold at an average price of $153.57, for a total value of $52,547,046.90. Following the sale, the chief operating officer directly owned 2,472,035 shares in the company, valued at $379,630,414.95. The trade was a 12.16% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
SpaceX Stock Performance NASDAQ SPCX opened at $160.57 on Friday. The firm’s 50 day moving average price is $143.95. SpaceX has a one year low of $104.83 and a one year high of $225.64. The company has a quick ratio of 4.99, a current ratio of 5.12 and a debt-to-equity ratio of 0.29. The company has a market cap of $2.12 trillion and a P/E ratio of -1,784.11.
SpaceX (NASDAQ:SPCX – Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The company reported ($0.09) earnings per share for the quarter, topping the consensus estimate of ($0.26) by $0.17. The business had revenue of $7.81 billion during the quarter. The company’s revenue was up 91.9% on a year-over-year basis. As a group, equities analysts predict that SpaceX will post 0.09 EPS for the current fiscal year.
SpaceX News Roundup Here are the key news stories impacting SpaceX this week:
Positive Sentiment: SpaceX agreed to acquire nationwide 800 MHz low-band spectrum licenses from Grain Management, giving Starlink a path to expand into indoor cellular coverage and compete more directly with AT&T, Verizon and T-Mobile. The deal remains subject to final FCC approval. SpaceX Acquires Nationwide Spectrum Licenses Positive Sentiment: The FCC approved SpaceX’s next-generation Starlink Mobile constellation of up to 15,000 satellites and waived a ground-carrier leasing requirement, strengthening the company’s direct-to-device strategy. FCC Approval for 15,000 Starlink Satellites Positive Sentiment: American Airlines plans to install Starlink internet on more than 1,000 aircraft, adding a substantial commercial customer and supporting recurring connectivity revenue. American Airlines to Add Starlink Neutral Sentiment: Elon Musk said he sees a path for SpaceX to reach a valuation in the “tens of trillions,” a bullish long-term forecast but one that offers no near-term financial guidance. Musk’s SpaceX Valuation Prediction Negative Sentiment: Reports that SpaceX may raise approximately $40 billion in loans and bonds to purchase Nvidia AI chips intensified concerns about leverage, capital allocation and the risk of spending heavily before AI-compute demand and returns are proven. Credit-default swap costs reportedly reached record levels. Apollo and Banks Discuss SpaceX Financing Negative Sentiment: Up to 328.4 million shares are scheduled to become eligible for sale on October 9, creating a potential increase in trading supply and selling pressure. SpaceX Share Unlock Negative Sentiment: Starlink’s India launch remains stalled amid a public dispute with local telecom interests and regulators, delaying access to a major potential market. Starlink India Launch Dispute About SpaceX (Free Report)
Space Exploration Technologies Corp. (SpaceX) is a privately held aerospace company founded in 2002 by Elon Musk. The company develops and operates launch vehicles, spacecraft and satellite systems designed to reduce the cost of access to space and support commercial, government and scientific missions.
SpaceX’s primary products and services include the Falcon 9 and Falcon Heavy launch vehicles, the Dragon spacecraft and the Starlink satellite internet network. The company also is developing Starship, a fully reusable launch and spacecraft system intended for missions to Earth orbit, the Moon and Mars.
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An $8 billion spectrum deal is raising the stakes for AT&T, Verizon and T-Mobile as SpaceX expands its wireless ambitions. Summary
SpaceX agreed to buy a nationwide low-band spectrum portfolio for $8 billion.
Space Exploration Technologies Corp. (SPCX, Financials), the space and communications business behind Starlink, sent shockwaves across the telecom sector after a $8 billion spectrum transaction prompted new doubts about its aspirations in wireless communications.
The article said SpaceX had agreed to buy a countrywide portfolio of low-band spectrum from Grain Management. The news sparked a selloff of all major telecom stocks, including AT&T, Verizon and T-Mobile US.
The response is essential since spectrum is one of the most precious resources in wireless communications. The addition of statewide low-band frequencies might provide greater options for SpaceX as it pushes Starlink beyond satellite broadband and into direct connectivity offerings.
That puts another variable into the competitive mix for established carriers.
AT&T, Verizon and T-Mobile have invested substantially to build up terrestrial cellular networks and acquire spectrum. SpaceX currently has a vast satellite infrastructure footprint, meaning extra spectrum might increase its capacity to link products and consumers without depending on traditional cell towers.
It's too early to tell which telecom stock the research was bullish on, as the attached report breaks short before covering the companies' individual quant evaluations.
The market reaction, however, is a stronger signal that investors are taking SpaceX's wireless plans seriously.
The next catalyst will be news about how SpaceX expects to utilize the spectrum it bought and whether the deal affects its connections with existing telecom partners.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
In spite of the fact that Space Exploration Technologies Corp. (NASDAQ: SPCX) stock rebounded in the pre-market session on October 9, 2026, amid rumors of a possible $40 billion debt financing plan to scale up its artificial intelligence (AI) data centers, Barclays PLC (LSE: BARC) expects a bull run to a new all-time high (ATH) over the next 12 months
Barclays initiated an ‘Overweight’ rating for SpaceX stock, according to a note sent to clients on October 8 that Finbold analyzed on Friday. The bank set its 12-month SPCX price target at $254.
With SpaceX’s price trading at $167.2 at the time of writing, the multinational bank indicates a likely 51.91% upside over the next 12 months.
This bullish outlook is based on the idea that the United States is in the “early innings of a modern-day industrial revolution.” As such, Barclays signaled a strong bullish thesis for the U.S. aerospace and defense sector.
SpaceX stock price prediction 2026 At the time of reporting, 34 Wall Street analysts surveyed by TipRanks over the past 30 days had set a 12-month SpaceX stock price target of $215.72.
SpaceX stock price prediction 2026. Source: TipRanks The highest SpaceX stock price prediction is $450 from analyst Andrew Beale of Arete Research. On the other hand, the lowest SPCX stock price forecast is $75, issued by Glenn Thum of Phillip Securities.
SPCX stock price today After closing three consecutive days in a selloff, SPCX stock price today signaled a potential reversal. At press time, SpaceX stock traded at $167.20, up from yesterday’s closing price of $160.57.
SPCX stock price today. Source: TradingView Consequently, this company has a market capitalization of roughly $2.1 trillion.
As SPCX stock price approaches a major resistance level around $171.66, Barclays is confident of a potential rally to a new ATH over the next 12 months.
Featured image via Shutterstock
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Nové finanční výkazy ukazují, že Donald Trump zůstává mimořádně aktivním investorem. V srpnu nakoupil mimo jiné akcie Mety za desítky milionů dolarů a výrazně navýšil expozici vůči SpaceX, což vyvolává otázky ohledně překryvu mezi jeho investicemi a kroky administrativy.
Americký prezident Donald Trump v srpnu provedl přes 500 nákupů cenných papírů. Mimo jiné investoval 25 milionů dolarů (544 milionů Kč) do akcií technologické společnosti Meta Platforms a až pět milionů dolarů do nákupu dluhopisů vesmírné společnosti SpaceX. Podle webu CNBC to vyplývá z Trumpových finančních výkazů. Web si všímá, že dluhopisy SpaceX nakoupil šéf Bílého domu pouhé dva dny předtím, než podepsal rozsáhlý dokument o rozšíření komerční vesmírné dopravy ve Spojených státech, z něhož bude firma těžit.
Celkem Trump podle 18stránkového dokumentu provedl 517 nákupů a prodejů. Dokument uvádí hodnotu jednotlivých položek v určitém rozpětí, podle analýzy CNBC činily nákupy nejméně 44,2 milionu dolarů a prodeje nejméně 30,1 milionu dolarů.
Prezident byl na trzích i nadále velmi aktivní, ale tempo přece jen zvolnil. V červnu a v červenci ještě uskutečnil každý měsíc přes 1000 obchodů.
Dokument odhaluje značnou novou investici do společnosti SpaceX miliardáře Elona Muska. V menším rozsahu prezident zainvestoval do tohoto významného dodavatele Pentagonu, který zajišťuje starty pro NASA, už dříve nákupem jejích akcií za nižší desítky tisíc dolarů.
Ale 18. srpna nakoupily Trumpovy účty nezajištěné dluhopisy SpaceX s přednostním právem v hodnotě mezi jedním a pěti miliony dolarů. Dluhopisy mají úrokovou sazbu 5,35 procenta a jsou splatné v červenci 2031.
O dva dny později podepsal prezident dokument týkající se národní politiky v oblasti kosmické dopravy. Spojené státy by podle něj měly do roku 2030 podporovat více než 1000 startů a návratů do atmosféry ročně. Federálním agenturám se ukládá, aby usnadňovaly komerční přístup k vládním odpalovacím zařízením a podporovaly soukromé investice a partnerství veřejného a soukromého sektoru v oblasti kosmické infrastruktury.
Překryvy mezi Trumpovým portfoliem a kroky jeho administrativy se netýkají jen SpaceX, všímá si CNBC. Trump dnes na vědeckém summitu v Bílém domě ocenil několik manažerů a zakladatelů technologických firem, jejichž společnosti se objevily mezi jeho nejnovějšími akvizicemi, včetně Muska, generálního ředitele Nvidie Jensena Huanga, generálního ředitele Microsoftu Satyi Nadelly, generálního ředitele Dell Technologies Michaela Della, generální ředitelky AMD Lisy Su a spoluzakladatele Googlu Sergeye Brina.
Bílý dům dnes uvedl, že Trump obchody sám neřídí. Mluvčí Davis Ingle řekl, že portfolio je nezávisle spravováno prostřednictvím zvláštních účtů a počítačových modelů, přičemž Trump ani jeho rodina nemají možnost jejich investiční rozhodnutí ovlivňovat.
SpaceX founder Elon Musk on Thursday took a shot at Indian billionaire Mukesh Ambani, a day after he accused certain "oligarchs" of stalling the launch of his company's Starlink internet service in the country.
Musk said Starlink was not being allowed to launch in India despite having spent "five years complying with every single law and requirement" of the government.
"Is Ambani the real boss of India?" Musk questioned in a post, having blamed a day earlier "oligarchs" in the country for maintaining a "monopolistic chokehold on the Indian people."
Ambani's Jio is the largest telecom and internet service operator in India and, along with the other major operator, Airtel, controls about 80% of the market.
Musk's comment against Ambani caused a political stir in India, eliciting a response from India's leader of opposition, Rahul Gandhi, who has consistently alleged that the government is being influenced by powerful businessmen in India.
"Wait till you meet the other one," Gandhi said in a veiled reference to India's wealthiest businessman Gautam Adani, who has been a key target of the politician. "This is indeed troubling," Musk said in response to Gandhi.
Reliance Industries, Ambani's flagship company, did not respond to CNBC's request for comment.
Frozen approvalsIn March last year, Starlink signed pacts with Ambani's Jio Platforms and India's second-largest telecom company Airtel to explore cross-selling the products and services of the U.S. company in India.
Following the interim deals, Musk's satellite internet business in July last year got a license to launch its services in India.
But Starlink could not launch. Bloomberg reported earlier this year that New Delhi had frozen approvals for Starlink over concerns that its terminals could be used despite the service not being licensed.
Meanwhile, Akash Ambani, the son of Mukesh and managing director of Jio Platforms, told shareholders in June that his company was planning to roll out low-orbit satellite communications in the country.
Jio is looking to set up set up a satellite network of around 1,600 LEO satellites and 23 ground stations to expand connectivity across India, according to local media reports. Starlink, on the other hand, has 11,000 satellites in orbit that provide service to people in over 170 countries and territories.
Akash Ambani on Thursday told Moneycontrol, a platform owned by the Reliance Group, that the company believes "India needs its own indigenous stack of technologies."
Satellite communication is not the only space where Musk's business plans in India have failed to take off. Tesla, which was launched last year in the South Asian country, has received an underwhelming response, with the company reportedly selling just a little over 1,000 cars since launch.
The SpaceX logo in this illustration taken June 11, 2026. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab
SummaryCompaniesFCC approves Starlink Mobile Gen2 application for 15,000 satellitesLow-band airwaves improve range and indoor penetration through walls and tree coverT-Mobile, Verizon and AT&T shares each down nearly 7% after hoursOct 8 (Reuters) - SpaceX (SPCX.O), opens new tab struck a deal on Thursday to acquire a nationwide low-band spectrum portfolio, positioning Elon Musk's satellite venture to mount a direct, orbital challenge to legacy wireless giants across the United States.
While Starlink Mobile's existing global 2 GHz mid-band spectrum will provide high-bandwidth capacity, the new spectrum will enable its signal to pass through obstacles. Financial terms of the agreement were not disclosed.
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Low-band frequencies are prized for their ability to travel longer distances and penetrate dense structures such as walls and tree cover, addressing a major technical hurdle previously faced by satellite-based mobile networks.
By pairing nationwide low-band airwaves with high-frequency space capacity, SpaceX is positioning Starlink Mobile to bypass conventional cell towers entirely and challenge the wireless oligopoly on both broad coverage and in-building reliability.
The deal also raises the stakes for legacy carriers, transforming satellite direct-to-device connectivity from a supplementary safety feature for remote dead zones into a full-scale commercial rival capable of unseating terrestrial cellular networks.
Shares of T-Mobile US (TMUS.O), opens new tab, Verizon (VZ.N), opens new tab and AT&T (T.N), opens new tab fell nearly 7% in extended trading.
"The incumbent wireless carriers have been vocal in expressing skepticism that SpaceX's network will be able to match the quality of their networks," William Blair analysts said.
"We expect SpaceX to offer a very compelling Starlink broadband and Starlink Mobile bundle. The company may also include Grok in the package."
The transaction, which involves acquiring 100% of private-equity firm Grain Management's nationwide 800 MHz spectrum portfolio, remains subject to regulatory approval by the Federal Communications Commission. Grain had acquired the airwaves from T-Mobile earlier this year.
Crucially, most existing, unmodified mobile handsets already support the 800 MHz frequency band, eliminating the need for consumers to purchase proprietary satellite phones.
The Federal Communications Commission also approved Starlink Mobile's Gen2 constellation application this week, authorizing SpaceX to launch 15,000 satellites that are optimized for 2 GHz spectrum globally.
The new orbital fleet will operate in very low Earth orbit, delivering expanded bandwidth and low-latency connections to standard handsets.
Updates shares, adds analyst comments in paragraphs 6-8
Reporting by Akash Sriram in Bengaluru; Editing by Shilpi Majumdar
Our Standards: The Thomson Reuters Trust Principles., opens new tab
SpaceX is quietly renting computing power to the very companies trying to outcompete its own AI chatbot, and the landlord strategy is pulling in billions. The question is whether Google and Anthropic will keep paying rent or build their own…
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SpaceX (NASDAQ:SPCX | SPCX Price Prediction) runs two AI stories in opposite directions. Its Grok chatbot trails the leaders. A Momentic Marketing report published August 18, 2026, built on May 2026 Similarweb data, ranked Grok fifth of seven major assistants by worldwide web visits, behind ChatGPT, Gemini, Claude and DeepSeek, and found it lost worldwide share over the past quarter. SpaceX rents computing power to Grok’s rivals. Gwynne Shotwell said on the August 4 earnings call:
“We’re rapidly expanding our compute capacity to meet our own needs as Grok expands, as well as those for other leading companies such as Google and Anthropic.”
Shares traded at $164.47 this morning, down 1.87% on the day and up 11.17% over the past month.
What SpaceX Actually Sells in AI The AI unit bundles cloud compute, Grok development and the X platform. It brought in $2.56 billion in Q2, up 247% from a year earlier. AI Solutions & Infrastructure generated $2.194 billion, while advertising declined to $367 million. Starlink’s Connectivity unit led at $4.29 billion. Launch services brought in $962 million.
Cloud Services Agreements total $14.1 billion in signed sales, with the first phase contributing $1.6 billion of incremental AI infrastructure revenue in the quarter.
Landlords Collect Rent Whoever Wins A landlord collects rent regardless of which tenant wins. Elon Musk suggested Grok will occupy only a minority of SpaceX’s compute:
“I would expect maybe 10% of our compute to be used for grok training, something like that.”
Management claimed a less than one-year payback on new capital deployments for compute. The AI segment’s adjusted EBITDA turned positive for the first time at $1.1 billion.
SpaceX joins Oracle (NYSE:ORCL) and CoreWeave (NASDAQ:CRWV) as GPU landlords. Much of Oracle’s backlog is attributable to OpenAI. CoreWeave’s revenue has historically come mostly from Microsoft (NASDAQ:MSFT) and OpenAI, Hyperframe Research noted.
Capital Costs and Concentration Could Break the Model Q2 capex hit $18.37 billion, with $15.83 billion for AI computing power. Management said the next two quarters to be very similar to the current quarter from a CapEx level perspective. The AI unit posted a $1.3 billion operating loss, and the company lost $541 million overall.
The tenant list is concentrated. Alphabet (NASDAQ:GOOGL) runs its own data centers. If Google and Anthropic build sufficient capacity, they stop leasing. Musk said SpaceX expects a very small percentage of its chip supplier’s GPUs next year. The stock trades at a forward P/E of 200, leaving little room for disappointment.
Next Quarterly Report Will Test the Landlord Thesis Management signed an additional $6.7 billion of cloud services revenue over six months starting in October. The next quarterly report should push AI Solutions & Infrastructure revenue above $2.194 billion, Cloud Services Agreements above $14.1 billion, and capacity above 1.4 GW on track for over 2 gigawatts by year-end. If all three occur, the landlord thesis holds. If infrastructure revenue stalls while AI capex stays near $15.8 billion quarterly, it breaks.
Contact [email protected] for any questions or corrections.
SpaceX announced an agreement on Thursday to purchase a nationwide spectrum portfolio as it to pushes its Starlink service deeper into the U.S. telecommunications market. Shares of AT&T, Verizon and T-Mobile tumbled in extended trading.
The deal involves the acquisition of spectrum portfolio from Grain Management, which specializes in digital infrastructure, and is subject to approval by the Federal Communications Commission. SpaceX said in a statement that it's a "license portfolio of up to 14 megahertz of paired spectrum in the 800 MHz band."
"This prime low-band spectrum addresses one of the key remaining technical gaps that will pave the way for Starlink Mobile to become a major mobile carrier in the US," SpaceX said.
In a post on X, SpaceX CEO Elon Musk called it a "very big deal."
This is breaking news. Please refresh for updates.
SpaceX SPCX stock fell 2.5% Thursday as investors looked ahead to another major lockup expiration that could increase the supply of shares available for trading.
Up to 328.4 million shares are scheduled to become eligible for sale on October 9, giving existing shareholders the option to cash out.
The stock’s decline broadly tracked the wider market, with investors also monitoring elevated Treasury yields and oil prices.
The S&P 500 fell 0.4%, while the Nasdaq Composite declined 0.6%. The Dow Jones Industrial Average dropped 201 points, or 0.4%.
The October 9 release is the latest in a series of staggered SpaceX lockup expirations following the company’s June IPO.
Rather than using a single 180-day expiration, SpaceX structured its offering around multiple dates at which different groups of shareholders can become eligible to sell.
That structure has limited the amount of stock entering the market at any one time, but it has also created a recurring source of uncertainty for investors.
The upcoming release does not mean that all eligible shareholders will sell.
However, the prospect of additional supply can weigh on the stock as investors assess whether early shareholders will take profits following SpaceX’s gains since its August low.
The October 9 unlock also comes as investors assess whether SpaceX’s rapid expansion into artificial intelligence computing can justify its valuation.
Erste Group analyst Stephan Lingnau initiated coverage of SpaceX with a Hold rating but did not assign a price target.
Lingnau said SpaceX’s “high EV/EBIT multiple” already reflects strong expectations for its AI business.
He expects SpaceX to reach a $100 billion annualized revenue run rate by the end of 2026, with cloud agreements involving AI companies such as Anthropic and Alphabet driving a significant portion of the growth.
Lingnau expects AI to become SpaceX’s largest revenue contributor as early as this year.
He also expects the highly profitable Starlink business to offset losses from the company’s aerospace and AI operations.
The analyst said SpaceX’s valuation assumes its AI business will “reach breakeven in the near term,” followed by a “significant increase in the operating margin.”
Other analysts remain more optimistic.
Earlier this week, Morgan Stanley analyst Adam Jonas reiterated his Buy rating and $300 price target.
Jonas said SpaceX looks “cheap and getting cheaper” relative to its growth prospects.
He also said investor interest in the company remains relatively quiet but argued that its growth potential makes the stock attractive.
In his view, concerns surrounding Grok and Starlink Mobile are already reflected in the valuation.
Goldman Sachs analyst Eric Sheridan also raised his SpaceX price target to $230 from $220 while maintaining a Buy rating.
Sheridan said the higher target reflects greater confidence in SpaceX’s AI business.
He increased his forecasts for AI capacity and revenue and expects margins to improve as the business scales.
Separately, President Donald Trump disclosed an investment of $1 million to $5 million in SpaceX senior unsecured notes, according to a newly released financial disclosure.
The notes carry a 5.35% interest rate and mature in July 2031.
The disclosure showed that Trump made the SpaceX debt investment two days before signing a policy memorandum aimed at expanding US commercial space transportation.
Trump’s disclosure also showed more than 500 securities transactions during August, including an investment of as much as $25 million in Meta stock.
The SpaceX investment is in the company’s debt rather than its equity, meaning it does not directly increase his ownership stake in the publicly traded stock.
SpaceX is also facing uncertainty around Starlink’s planned expansion into India, a potentially significant market for the satellite internet business.
Elon Musk has accused influential Indian telecommunications interests of obstructing Starlink’s entry to protect their existing market positions.
Indian government officials have rejected those accusations and said the approval process treats competing providers fairly.
Starlink has secured an initial license, but additional security clearances and spectrum allocation are still required before commercial operations can begin.
Further delays could postpone revenue opportunities in a market with a large population of consumers lacking reliable broadband access.
A SpaceX capsule carrying four astronauts returned from space and splashed down off the coast of California, capping the crew's mission to the International Space Station. The crew, part of a mission called Crew-12, had been living and working on the ISS since February, after launching to space in the same SpaceX Dragon spacecraft that brought them home.
Elon Musk has questioned the influence of Indian billionaire Mukesh Ambani as SpaceX struggles to launch its Starlink satellite internet service in the country. Musk’s comments, which were posted on X, escalate a dispute over regulatory delays after the Indian government rejected his claims that powerful business interests were blocking its entry.
Musk accused on Wednesday unnamed “oligarchs” of blocking Starlink’s launch in India to maintain what he called their “monopolistic chokehold” on the country, without identifying them or providing evidence for his claim. He called the alleged blocking a “crime against the people of India” and argued that Starlink could bring affordable, high-speed internet to people who lack internet access.
Hours later, India’s Ministry of Communications pushed back, saying its regulatory framework for satellite communications is “fair and non-discriminatory.” The ministry said in a statement that Starlink and two other licensed satellite operators are all at “broadly the same regulatory stage.” It added that all three companies are undergoing security assessments that must be completed before they can seek spectrum, the radio frequencies that satellites use to send signals.
Musk went further on Thursday, questioning the influence of Reliance Industries chairperson Mukesh Ambani.
”Is Ambani the real boss of India?” he wrote on X, after claiming that Starlink had spent years complying with Indian regulations and questioning why it still lacked a license.
Starlink has spent more than five years trying to enter India, a market with more than a billion internet subscribers. But it has yet to begin commercial services despite securing key regulatory approvals and partnering with telecom giants Reliance Jio and Bharti Airtel last year. SpaceX has also set up a local team as it prepares for a launch, appointing former Payoneer executive Prabhakar Jayakumar to lead its India operations in December.
Musk’s comments came hours after Lauren Dreyer, Starlink’s vice president of business operations, appeared at India Mobile Congress, a telecom industry conference in New Delhi and reiterated the company’s commitment to the market.
“We stand ready to serve India,” Dreyer said, adding that Starlink wants to help realize Prime Minister Narendra Modi’s goal of achieving universal connectivity across the country.
Starlink said it already has more than 20 gateway sites (the ground stations that link its satellites to the internet) and hundreds of antennas on the ground in India, and has adapted its operations to meet the country’s regulatory, security, and data-sovereignty requirements. Moreover, SpaceX has positioned its satellite network as a complement to — rather than a replacement for — India’s terrestrial telecom networks.
SpaceX first attempted to launch Starlink in India in 2021. The company, however, had to refund preorders for its equipment in early 2022 after the Indian government called it out for “booking/rendering the satellite internet service” before getting the necessary licenses.
Starlink has also previously clashed with India’s largest telecom operators over how satellite spectrum should be allocated. Starlink pushed for spectrum to be assigned administratively, while Reliance Jio argued that it should be auctioned — a position that could have made Starlink’s entry more expensive. India ultimately sided with Starlink’s preferred approach, deciding to allocate satellite spectrum administratively rather than through an auction.
Jio and Airtel, India’s two biggest telcom operators, are also pursuing their own satellite internet services, even as they have agreed to distribute Starlink in India. Jio is working with satellite operator SES on satellite broadband, while Airtel is a major backer of Eutelsat OneWeb, another licensed satellite operator in India.
While the timing of Starlink’s India launch remains unclear, the company this week launched Starlink Mobile, which connects ordinary phones to satellites, in neighboring Bangladesh.
Starlink, India’s Ministry of Communications, Reliance Jio, and Bharti Airtel did not immediately respond to requests for comment.
Update: This article was originally published at 11:14 p.m. PDT and has since been updated to include Musk’s comments questioning Reliance Industries chairperson Mukesh Ambani’s influence in India.
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Jagmeet covers startups, tech policy-related updates, and all other major tech-centric developments from India for TechCrunch. He previously worked as a principal correspondent at NDTV.
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