SpaceX Stock Tumbles From $225.64 to $160 as Mobile Service Plans Loom
SPCX•SpaceX shares slid from their $225.64 IPO peak to $160, erasing over $600 billion in value at about 106 times sales despite 33% revenue growth. President Gwynne Shotwell disclosed plans to launch a Starlink mobile service and possibly build a terrestrial wireless network, heightening competitive pressure.
1. Stock Performance Decline
SpaceX stock has plunged from its $225.64 IPO high to $160, wiping out over $600 billion in market capitalization. The shares trade at roughly 106 times trailing sales despite 33% year-over-year revenue growth, fueling debate over its stretched valuation.
2. Plans for Starlink Mobile Service
President Gwynne Shotwell revealed the company intends to launch a Starlink-branded retail mobile service for U.S. consumers and may construct its own terrestrial wireless network. This move marks Starlink’s first step beyond satellite broadband into the mobile connectivity market.
3. Competitive Implications
The terrestrial network ambition intensifies pressure on major carriers with more than 109 million subscribers; AT&T hit a 52-week low and both T-Mobile and Verizon saw share declines. Investors are weighing the impact of satellite entrants challenging established wireless operators.
