SpaceX Just Picked Qualcomm for Its Own 5G Network. I Still See the Stock as a Hold.
Tens of thousands of cell sites start going up in 2027. How much of that belongs in the stock price now?
SpaceX (SPCX -3.81%) has chosen Qualcomm (QCOM +5.33%) to provide ground infrastructure for its planned nationwide 5G network for Starlink Mobile. The deal was announced on Wednesday, with the rollout expected to begin in 2027. Both companies did not disclose the financial terms of the agreement. SpaceX's stock price dropped by nearly 3% on the day, trading near $136, a significant decline from its all-time high of $201.80.
While the partnership accelerates Starlink Mobile's timeline, the stock does not appear to be significantly affected at this time. SpaceX has spent over $19.6 billion on airwave licenses and will continue to invest around $35 billion to $40 billion in capital spending for AI computing capacity and ground network infrastructure. Despite the deal, SpaceX stock remains a hold for the reporter, who expects it to trade around 13 times sales in 2027.
Written by urgent.news from Motley Fool's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
