Telecom turmoil meets satellite expansion — Comcast shine, Verizon decline
Traditional telecom companies like Verizon and AT&T are getting crushed by new satellite competition from Starlink. Meanwhile, space companies like Rocket Lab are expanding by buying satellite networks. This is a clear market shift from old-school cell towers to space-based communication.
Idea
The telecom sector is in turmoil, with AT&T citing the 'Starlink threat' and Verizon sinking 7% on its Dow exit. The legacy communication model is being disrupted by satellite networks. At the exact same time, Rocket Lab is acquiring Iridium (a satellite network) for $8 billion to expand beyond just launches. This combination captures a generational shift: money is flowing away from 5G cell towers and into low-earth orbit satellite constellations. We want to be long the space infrastructure and short the legacy telecom providers.
What happened since
| Symbol | Dir | T+1 | T+5 | T+20 |
|---|---|---|---|---|
| VZ | LONG | -0.83% ✗ | -0.64% ✗ | — |
Price change since publication · updated Jul 12
Key details
Community
News sources
- Telecom Turmoil: Comcast Rises 7% on Media Spinoff, AT&T Falls 5% on CFO Exit and Starlink Threat, Verizon Sinks 7% on Dow Exit — Yahoo Finance
- Rocket Lab buys Iridium in $8 billion deal, to expand beyond launches — CNBC
- Mike Santoli: A great first half, but some erratic behavior raises doubts about the rally's integrity — CNBC