Old telecom crumbles while space-tech booms — long Rocket Lab as satellites eat the world
Traditional telecom companies like Verizon and AT&T are sinking under the threat of satellite internet. AsRocket Lab buys Iridium to dominate space communications, the combination of falling oil prices (lowering launch costs) and rising space-tech M&A signals a sector rotation from old-world telecom to new-world satellite networks.
Idea
This trade connects the massive drop in traditional telecom stocks with the $8 billion buyout of Iridium by Rocket Lab. As Verizon and AT&T face existential threats from satellite networks, capital is rapidly rotating into the space-economy. The simultaneous drop in oil prices (easing geopolitical risk premiums and energy costs for logistics) further de-risks the operational outlook for industrial space companies.