News & Updates
The latest news and updates from companies in the WLTH portfolio.
VZ, T, TMUS: SpaceX Starlink's Rise Tests Telecom Giants, But This Analyst Sees Opportunity Ahead
Morningstar sees limited impact of SpaceX's Starlink expansion on telecom companies. * Morningstar's Michael Hodel said Starlink has become a profitable satellite internet service, with EchoStar's deal supporting SpaceX's wireless expansion plans. * Hodel expects Starlink to complement rather than replace traditional networks. * He also highlighted Comcast, Disney, and Omnicom as attractive opportunities in the communications sector. Analysts believe SpaceX's (SPCX) Starlink satellite network is unlikely to dramatically reshape the broadband and wireless landscape, despite investor concerns surrounding the space technology firm's public debut and its potential impact on traditional communications providers. Add Asianet Newsable as a Preferred Source Starlink's Expansion Faces Market Limits Michael Hodel, Sector director, Communication Services, Morningstar, said in a note that SpaceX's satellite internet service has quickly attracted customers worldwide and emerged as a profitable part of the company's broader operations. The company is also pursuing direct-to-phone connectivity through spectrum acquisitions, raising concerns among traditional telecom providers. EchoStar (ECHO) has sold its nationwide AWS-3 wireless spectrum licenses to SpaceX for $2.6 billion in stock, strengthening the latter's plans for Starlink's satellite-based mobile services. According to Hodel, Starlink has built a considerable customer base in the U.S., but much of its adoption has come from rural communities that previously relied on slower internet options or older satellite services. The analyst expects improvements in satellite capacity over time, but believes technical limitations will prevent Starlink from replacing high-performing terrestrial networks in most populated areas. Wireless Disruption Concerns May Be Overstated Starlink's ambitions to connect directly with mobile devices have pressured shares of major telecom companies, including AT&T Inc. (T), Verizon Communications (VZ), and T-Mobile US (TMUS). However, Hodel argues satellite coverage works best in remote locations and cannot fully satisfy consumers who expect reliable service everywhere they travel. He added that building a nationwide wireless network would be difficult for SpaceX because it would need large amounts of spectrum and billions of dollars in infrastructure spending. Major carriers like AT&T, Verizon, and T-Mobile also have little interest in sharing their networks with a new competitor. Comcast, Disney And Omnicom Stand Out Amid Sector Pressure Despite industry uncertainty, Morningstar identified several companies as attractive opportunities in the communications sector. Comcast (CMCSA) remains a favored broadband play as the company evaluates options following its media separation plans. Walt Disney (DIS) is viewed positively because of streaming improvements, content strength, and growth opportunities beyond conventional television. Hodel also highlighted Omnicom (OMC), noting that while artificial intelligence creates challenges for advertising agencies, companies with strong data capabilities could benefit from changing marketing demands. SPCX stock has dropped 5% since its June debut, while CMCSA and DIS shares have declined 16% and 15%, respectively. OMC stock has remained flat during the same period. For updates and corrections, email newsroom[at]stocktwits[dot]com.<
SPCX Stock Slides Ahead Of Nasdaq-100 Debut: Billionaire Value Investor Says Its 'Third-Rate' AI Is Getting 'Kicked Around' By Anthropic, OpenAI
SpaceX will join the Nasdaq-100 on Tuesday, creating automatic demand from ETFs and mutual funds tied to the index, including QQQ. * Its initial index weight is expected to be limited to about 1% to 1.3% because less than 5% of shares were sold publicly. * Insider lockups could create future selling pressure, with some restrictions expected to expire 70 to 135 days after the June 12 IPO. * Jeremy Grantham criticized SpaceX's valuation, calling it the "craziest IPO in the history of man" and saying the company is "rolling in red ink." SpaceX entered its Nasdaq-100 debut week under pressure, with passive index demand set to kick in even as Jeremy Grantham questioned whether the company's AI-driven valuation can withstand scrutiny. Add Asianet Newsable as a Preferred Source SPCX stock fell 1% on Monday, extending a pullback after losing another 1% over the past week. Shares were also down 2% overnight late Monday. SpaceX Joins Nasdaq-100 SpaceX is set to enter the Nasdaq-100 at the start of trading on Tuesday, triggering automatic demand from index-linked mutual funds and ETFs, including Invesco's QQQ. The company was fast-tracked into the benchmark under rules designed to include newly public megacap companies sooner. Still, its initial index weight is expected to be limited by its small public float. SpaceX sold less than 5% of its shares in last month's public offering, while employee and insider lockups restrict additional supply. Since Nasdaq adjusts weights based on free float, SpaceX is expected to enter with an index weight of about 1% to 1.3%, far below what its $2 trillion market value would otherwise imply. The Nasdaq-100 debut also comes with a future supply risk. Some insider lockups are expected to expire in tranches between 70 and 135 days after SpaceX's June 12 IPO, while CEO Elon Musk's shares and certain large-holder restrictions are expected to remain locked for about a year. Jeremy Grantham Slams SPCX Valuation The index debut comes as Grantham, investment strategist at GMO, criticized SpaceX's valuation. Grantham is a legendary value investor known for repeatedly warning about major market bubbles, from Japan in 1989 and the dot-com peak in 2000 to the 2008 housing crisis and today's AI-driven valuations. In a Morningstar interview, Grantham called SpaceX the "craziest IPO in the history of man," arguing that investors may look back on the prospectus decades from now as a symbol of market excess. He said the company is "rolling in red ink" despite its towering valuation, and argued that much of the long-term case rests on aggressive AI assumptions. Grantham said 90% of the projection depends on SpaceX's "currently third-rate AI offering," which he said is being "kicked around the block" by Anthropic and OpenAI. xAI, acquired by SpaceX in an all-stock deal in February 2026 and now being rebranded as SpaceXAI, gained further momentum in June with SpaceX's $60 billion all-stock acquisition of Cursor parent Anysphere. The deal is expected to bolster Grok by combining Cursor's coding intelligence and developer data with xAI's Colossus supercluster. The AI push is unfolding as rival AI leaders Anthropic and OpenAI prepare for mega public listings, with private valuations of about $965 billion and $852 billion, respectively. Grantham acknowledged that index inclusion could lift the stock in the short run as forced buying may outstrip available supply: "So supply and demand being what it is, it's hard to imagine the price won't go up, and perhaps it will go up a lot." But he warned that the longer-term risk remains severe, saying he would "bet at least 90%" on a crash rather than SpaceX ultimately justifying its current valuation. Grantham also questioned SpaceX's broader AI and space assumptions, saying some productivity claims show "no idea what they're talking about" and that much of the space-travel ambition in the prospectus would be viewed by serious physicists as "utterly inconceivable." How Do Retail Traders Feel About SPCX? On Stocktwits, retail sentiment for SPCX flipped to 'bearish' levels over the past week from 'extremely bullish' levels at the time of listing amid a massive 26,150% surge in message volumes over the past month. One user said, "$SPCX The 'Forced' Buying begins. Puts will go to ZERO." View this Stocktwits post Another user said, "$SPCX only about 10% of the inclusion has actually happened. The largest bulk will occur tomorrow around 3 PM." View this Stocktwits post For updates and corrections, email newsroom[at]stocktwits[dot]com.<
