Reports of SpaceX seeking thousands of cell sites for a fourth U.S. wireless carrier slam telecom stocks; AT&T and T-Mobile sink ~8%
What happened
Reports on Friday said SpaceX is pursuing thousands of U.S. cell sites to establish a fourth national wireless carrier. The news hammered incumbent carriers in Friday trading: AT&T and T-Mobile each sank nearly 8%, while Verizon shed 1.2%, dragging down the broader communication services sector. Conversely, U.S. cell-tower operators rallied hard on the prospect of a well-funded new tenant — Crown Castle jumped 9% and American Tower gained 4%. SpaceX shares rose about 1.9% on the session.
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Start your free 14-day trialWho’s affected
- AT&T (T) and T-Mobile (TMUS), each down nearly 8% — exposed to direct competitive entry on pricing and subscriber share. Verizon (VZ), down 1.2% — less hard-hit but same overhang. Crown Castle (CCI) up 9% and American Tower (AMT) up 4% — exposed to tower-lease demand from a major new tenant. Communication services sector broadly weighed down.