SpaceX is in talks with cellular-infrastructure providers as part of a project to build America's fourth nationwide wireless carrier. Shares of T-Mobile, Verizon and AT&T are falling on the prospect. Bank of America Securities raised its price target on SpaceX stock.
SpaceX is in talks with cellular-infrastructure providers as part of an ambitious project to create America's fourth nationwide wireless carrier. That would mean competition for T-Mobile, Verizon and AT&T, and shares of all three are falling, MarketWatch reports.
Investing.com, citing Bloomberg, says the talks include Crown Castle and aim to secure access to a minimum of 80,000 cell sites across the United States. Analysts say that scale is consistent with building a full fourth national wireless network. The report also sent shares of tower operators surging, according to Investing.com.
However, SpaceX stock itself rose 2.0% in pre-open trading, Investing.com says. Bank of America Securities raised its price target on SPCX from $235 to $275 on October 22 and kept a Buy rating. JPMorgan reiterated its Overweight stance, saying the cell-site talks make the long-term opportunity for Starlink Mobile more credible, even as it acknowledged that building a competitive ground network would require substantial capital.
SpaceX also confirmed during its October 20 earnings call that it is exploring a potential merger with Tesla.
Sources: MarketWatch (snippet-based), Investing.com
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