Citi says SpaceX wireless push pressures US carriers, while tower operators may gain
Citi sees 29%-32% valuation risk for Verizon, T-Mobile and AT&T as SpaceX eyes a US wireless entry, while tower operators could benefit from leases.
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what happened
Shares of Verizon, T-Mobile and AT&T came under pressure on Friday after Citi warned that SpaceX's plans to enter the American mobile market could weigh further on the valuations of established carriers. According to a note reported by TheFly, the bank sees a 29%-32% valuation risk for the three companies, implying 4%-16% downside from current levels after their pullbacks in 2026. The information comes from Stocktwits.
Bloomberg reported on Thursday, citing people familiar with the matter, that SpaceX wants access to at least 80,000 cell sites nationwide and is in talks with major infrastructure providers. Such agreements could be worth billions of dollars and would help the company build a fourth national wireless network. SpaceX has also pursued low-band spectrum and received FCC approval for 15,000 more satellites that would deliver mobile signals directly to phones.
Tower operators moved in the opposite direction. Crown Castle shares jumped more than 10% to a four-month high, while SBA Communications and American Tower gained about 4% and 6%, respectively. Crown Castle CEO Chris Hillabrant said, "You can assume that we're talking to all parties," without naming any customers. T-Mobile and AT&T each fell more than 5%.
why it matters
For investors, the story shifts competitive expectations: incumbent carriers may have to contend with a new rival that would own its network, while tower owners could gain a fresh stream of leasing revenue. Citi's view comes from a single brokerage note, so market reaction may change as details of any SpaceX deals emerge.
market impact
US telecom stocks: valuation risk from SpaceX weighs on VZ, TMUS and T; tower companies gain support
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instruments
sources
- VZ, TMUS, T Stocks Face Valuation Pressure From SpaceX Wireless Push But Tower Operators Stand To Gain, Says Citi — Stocktwits, 23 October 2026 at 16:29 UTC
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