Uh-oh, is Musk’s SpaceX stirring things up again? It has apparently spooked America’s three major telecom giants, wiping out more than $36 billion in market value.
Just recently, SpaceX reached an agreement with Grain Management to acquire its nationwide 800 MHz low-band spectrum, with plans to enter the U.S. mobile carrier market! It’s similar to China Mobile and China Telecom—looks like Musk will be getting into the mobile phone business too.
As a result, in the previous trading session, the three major carriers lost a combined $36 billion to $39 billion in market value! T-Mobile plunged 13.2% at the close, hitting a nearly 33-month low, while AT&T and Verizon each fell around 9% to 10%.
Objectively speaking, though, even if SPCX grew its telecom business to the same scale as Verizon, Verizon’s market cap is only around $100 billion. That would still be a limited boost compared with SPCX’s $2.2 trillion market cap.
So there’s no doubt SPCX is a good company, but the market has also assigned it a very high premium, valuing it at as much as $2.2 trillion—which seems a bit too high. Also, Xiao Qin wants to remind everyone that SPCX shares will be unlocked in October, November, and December, so there may be some selling pressure. Let’s keep a close eye on it~
Just recently, SpaceX reached an agreement with Grain Management to acquire its nationwide 800 MHz low-band spectrum, with plans to enter the U.S. mobile carrier market! It’s similar to China Mobile and China Telecom—looks like Musk will be getting into the mobile phone business too.
As a result, in the previous trading session, the three major carriers lost a combined $36 billion to $39 billion in market value! T-Mobile plunged 13.2% at the close, hitting a nearly 33-month low, while AT&T and Verizon each fell around 9% to 10%.
Objectively speaking, though, even if SPCX grew its telecom business to the same scale as Verizon, Verizon’s market cap is only around $100 billion. That would still be a limited boost compared with SPCX’s $2.2 trillion market cap.
So there’s no doubt SPCX is a good company, but the market has also assigned it a very high premium, valuing it at as much as $2.2 trillion—which seems a bit too high. Also, Xiao Qin wants to remind everyone that SPCX shares will be unlocked in October, November, and December, so there may be some selling pressure. Let’s keep a close eye on it~