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SpaceX Telecom Ambitions Aren’t Reason to Fear This ETF

BY | ETF Database
10/16/2026 | 13 VIEWS
For the week ending Tuesday, Oct. 13, shares of SpaceX (SPCX ) slumped nearly 9%. Part of the drag on the stock was reaction to the company’s telecom ambitions.SpaceX’s Starlink is a major provider of satellite internet services, with clear telecom inroads. The stock is classified, by some index providers, as a communication services name. All of that is to say SpaceX has viable telecom ambitions. But the stock’s recent slump may be a sign investors are misunderstanding what Elon Musk has in store. Those misinterpretations could create opportunity with the stock, and, for aggressive short-term traders, the Direxion Daily SpaceX Bull 2X ETF (LOFF). The fund attempts to deliver 200% of the daily returns of SpaceX shares.Clearing the AirDeutsche Bank analyst Bryan Kraft believes it’s important to note SpaceX is unlikely to be eyeing a traditional cellular network that would ultimately compete with the likes of AT&T and Verizon. “Space X is pushing ahead with its hybrid small-cell and satellite architecture, and the purchase of 800 MHz spectrum from Grain Management is part of that effort as it will provide spectrum for small cells in some areas and additional high-quality spectrum for satellite deployment in others,” wrote the analyst in a recent note. “We don’t think SpaceX is contemplating a traditional cellular buildout (utilizing macro sites or traditional small cells) at this stage and thus, we believe the sell-off in the stocks of the Big 3 MNOs on Friday was excessive and misguided.” “MNO” refers to mobile network operator. with the “Big 3” being AT&T, T-Mobile, and Verizon. It’s a competitive, capital-intensive, and slow-growth business. That indicates SpaceX investors and prospective LOFF traders could benefit if the company stays out of that arena.Longer-Ranging Effort?Kraft points out that SpaceX is more likely to pursue the mobile virtual network operator (MVNO) pathway. That’s likely to be a longer-ranging effort. But if executed properly, it could be a spark for the stock, and on occasion, the leveraged LOFF. “We also view the company’s current spectrum position as inadequate for a macro cell buildout at scale, although more spectrum will be available at auction in 2027 (C-band) and probably in 2028,” added Kraft. “An MVNO, if attainable, remains the more likely long-term path for carrying traffic that Starlink cannot economically or reliably carry over its own terrestrial and satellite assets. We expect SpaceX to continue using its network progress and spectrum position to try to build negotiating leverage with incumbent mobile operators.” For more news, information, and analysis, visit the Leveraged & Inverse Content Hub.

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