XSPC
Not exactly a Verizon killer
MoffettNathanson’s Julie Zhu came on Squawk Box and basically poured a little cold water on the “SpaceX is coming for telecom” hype. Her take: the company’s newly purchased nationwide spectrum portfolio is interesting, but it’s still not competitive with the Big 3 telecom offerings. In other words, this is a runway story, not a victory lap.
The good news: SpaceX is still stacking bricks
That doesn’t mean the thesis is dead. SpaceX keeps adding pieces to its satellite-and-spectrum puzzle, and the market loves a company that can turn one moonshot into three side quests. Zhu’s $142 price target signals she still sees meaningful upside — just not the kind that says, “Congrats, you’ve replaced AT&T by Tuesday.”
Why investors should care
The spectrum purchase matters because it gives SpaceX more control over a future direct-to-device strategy, especially if Starlink wants to move from “cool internet in remote places” to “actual telecom alternative.” But Zhu’s comments suggest the competitive gap is still wide, which means the story is likely to be:
- slow buildout, not instant disruption
- regulatory and infrastructure heavy lifting
- more optionality value than immediate revenue explosion
Big picture: SpaceX is still playing the long game, and telecom incumbents can exhale — at least for now.