An $8 Billion Reason Why SpaceX Stock Is Up Today

SpaceX (SPCX) shares are extending gains on Friday as investors welcome an $8 billion spectrum deal that could significantly expand the giant’s ambitions in the wireless communications market. SPCX has agreed to acquire Grain Management’s nationwide portfolio of low-band (800 MHz) wireless spectrum licenses. 

While the deal has yet to receive regulatory approval, SpaceX stock opened about 4% higher today.

Significance of the Spectrum Deal for SpaceX Stock

The acquisition addresses a major technical limitation for satellite-based mobile connectivity. 

Low-band signals travel farther and penetrate buildings more effectively than higher-frequency signals, positioning Starlink Mobile to deliver more reliable service indoors and across areas with limited cellular coverage. 

Combined with Starlink’s existing 2 GHz spectrum and next-gen satellites, the additional licenses could help SpaceX compete more directly with established telecom operators like AT&T (T) and Verizon (VZ).

SPCX shares rallied as investors found solace in the prospect of a new growth market, even though building a nationwide network will require substantial investment and regulatory approvals.

Are SPCX Shares Worth Owning Heading into 2027?

SpaceX shares are worth owning because the giant has several growth engines beyond its wireless ambitions. 

Its launch business benefits from reusable rocket technology and demand for commercial, federal, and national-security missions, while Starlink generates recurring sales from satellite broadband subscriptions and enterprise customers.

Crucially, the momentum was evident in SPCX’s latest reported quarter, featuring a 92% year-on-year increase in revenue to $7.8 billion while the firm’s adjusted EBITDA roughly tripled to $3.5 billion. 

SpaceX ended the quarter with $47.5 billion in backlog and $100 billion in cash, cash equivalents, and marketable securities, reinforcing that it has considerable resources to pursue new opportunities across connectivity, space infrastructure, and artificial intelligence (AI).  

That said, its price-to-sales (P/S) ratio of over 100x should give value-conscious investors a pause.

SpaceX Remains Buy-Rated Among Wall Street Firms

Wall Street analysts recommend long-term investors look beyond valuation concerns. 

According to Barchart, the consensus rating on SpaceX sits at “Moderate Buy,” with the mean price target of about $224 indicating potential upside of about 40% over the next 12 months. 

On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.