T, VZ, TMUS Stocks Are Sliding Today — Is There A SpaceX Connection?

• SpaceX is reportedly seeking spectrum better suited for urban and densely populated areas.
• The company is said to be weighing acquisitions or bidding in a government spectrum auction scheduled for next year.
• The move is seen as a step toward Starlink competing directly with established U.S. wireless providers.

Shares of AT&T (T), Verizon (VZ), and T-Mobile (TMUS) fell on Wednesday and ended the session lower following a report that Starlink operator SpaceX (SPCX) is seeking wireless spectrum for urban and densely populated areas. The report raised concerns that the Elon Musk-led company could compete directly with the major U.S. carriers.

While AT&T ended the session down around 3%, Verizon fell about 2%, and T-Mobile closed nearly 0.5% lower. 

SPCX Eyes Urban Spectrum

Elon Musk’s SpaceX has been hunting for spectrum that works well in cities and densely populated areas as it looks to fill a gap in its airwaves needed for a full-service wireless network, Semafor reported, citing people familiar with the matter.

According to the report, the company is considering acquiring competitors to obtain the spectrum or competing in a government auction scheduled for next year. The move is a sign that SpaceX's satellite internet service, Starlink, may be preparing to compete directly with major wireless carriers such as AT&T, Verizon, and T-Mobile.

Spectrum Auction In Focus

Semafor reported that AT&T, Verizon, and T-Mobile have spent about $110 billion over the past decade acquiring much of the low-band spectrum in the U.S. That low-band spectrum, known as the C spectrum, is scheduled to be auctioned next year and has both satellite and terrestrial applications.

The report said that if SpaceX competes in the auction, it could force legacy carriers to take on unsustainable levels of debt. However, it added that SpaceX's plans remain fluid and the company could ultimately decide not to move forward.

SpaceX Lands $1.6B Space Force Contract

Separately, SpaceX won a $1.6 billion order from the U.S. Space Force on Wednesday to launch 18 Falcon 9 missions through 2027 carrying Pentagon satellites for detecting and targeting airborne objects, reported Reuters.

The missions were awarded under two task orders as part of the U.S. Space Force's flagship launch procurement program, where SpaceX, United Launch Alliance, Blue Origin and other U.S. launch providers compete for mission assignments.

T, VZ, TMUS, SPCX Stocks: Sentiment Mixed

On Stocktwits, retail sentiment toward VZ, TMUS, and SPCX was ‘bullish,’ while message volume remained ‘high’ for all three stocks at the time of writing. Sentiment toward T was ‘bearish’ while message volume was ‘normal.’

The stocks have delivered mixed performances this year. VZ stock has gained 16.5% year-to-date, while T and TMUS shares have fallen 2.8% and 9.3%, respectively, during the same period. SPCX stock has declined nearly 26% since its listing in June.

Also See: CAT Stock Slides 8% — Baird Downgrades Caterpillar Over Data Center Backlash

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