Stock Market Today, Oct. 9: Verizon Slides on SpaceX Spectrum Deal and Scotiabank Target Cut

SpaceX announced plans to acquire up to 14 MHz of 800 MHz spectrum from Grain Management, valued at $8 billion, to expand its Starlink Mobile service. This move caused shares of Verizon, AT&T, and T-Mobile US to drop significantly. T-Mobile US CTO John Saw criticized the deal, citing technical and financial challenges. The spectrum was previously owned by T-Mobile US and EchoStar.

Verizon (VZ), AT&T, and T-Mobile stocks fell ~10% after SpaceX agreed to buy 800 MHz spectrum licenses, raising competition concerns. SpaceX aims to expand Starlink Mobile, while FCC Chair Carr sees this as positive for innovation. Verizon, AT&T, and T-Mobile shares dropped to $41, $22, and below $150, respectively, nearing support levels. SpaceX's earlier EchoStar deals support its direct-to-cell strategy, but services using the new spectrum await FCC approval.

FCC approved SpaceX to launch 15,000 Starlink Mobile satellites, enabling direct phone connectivity with 100x current bandwidth. SpaceX can compete directly with Verizon and AT&T, targeting rural and roaming customers first. Launches begin in late 2027, with full network by 2035. SpaceX owns spectrum from EchoStar, avoiding carrier leasing rules.

SpaceX's acquisition of Grain Management's 800 MHz spectrum has raised concerns about competition for Verizon (VZ), T-Mobile (TMUS), and AT&T (T). Analysts suggest potential pricing pressure and retention risks. Scotiabank lowered price targets for all three carriers, citing long-term disruption risks. Shares of all three companies fell on Friday.

SpaceX announced plans to become a major U.S. mobile carrier, leading to a 10-14% drop in shares of AT&T, Verizon, and T-Mobile, wiping out over $50 billion in market value. The FCC approved SpaceX's launch of 15,000 new satellites. SpaceX's Starlink, valued at $2.2 trillion, has 12 million subscribers and is the only profitable part of SpaceX's business.

SpaceX agreed to acquire 800 MHz spectrum from Grain Management, aiming to launch Starlink Mobile. Verizon, AT&T, and T-Mobile shares fell 10-13% on competition concerns. SpaceX shares rose 1%. The deal requires FCC approval. FCC Chair Carr welcomed the competition. SpaceX plans to build a terrestrial mobile network, with earlier acquisitions supporting direct-to-cell service. Starlink has 12 million subscribers.