A European Starlink rival’s shares skyrocketed 390% in a week — here’s why
A satellite dish in a ground network of satellites at Eutelsat’s Madeira office. Photographer: /Bloomberg via Getty Images
Zed Jameson | Bloomberg via Getty Images
Shares of French satellite operator Eutelsat skyrocketed almost 390% last week — and a potential change of tack in European defense has been helping the rally.
The firm’s stock price saw wildly volatile moves last week, up by as much as 77% on Tuesday and by another 120% on Wednesday. From its closing price on Feb. 28 to last Friday’s close, shares have risen an eyewatering 387%.
Eutelsat’s shares continued to climb on Monday, jumping more than 22% as of 1:00 p.m. local time in Paris.
What’s behind Eutelsat’s huge share price gains? CNBC runs through all you need to know.
What is Eutelsat?
Eutelsat is a French company that produces satellites for data connectivity. The business sends its satellites to space using rockets from the likes of Elon Musk’s SpaceX, deploying them into both low earth orbit (LEO) and into geostationary orbit (GEO).
Following a deal to combine its operations with British satellite firm OneWeb in 2023, Eutelsat became the world’s third largest satellite operator in terms of revenues. It competes with Musk’s Starlink satellite internet venture, a subsidiary of SpaceX.
Why are shares skyrocketing?
Last week, reports surfaced suggesting that Eutelsat was in the running to potentially replace Musk’s Starlink in the embattled Ukraine. For years, Starlink has offered Ukraine’s military satellite its internet services to assist with the war effort amid Russia’s ongoing invasion.
However, relations between the U.S. and Ukraine have soured recently following the election of President Donald Trump. Musk serves as head of the newly instated Department of Government Efficiency, an advisory body assisting the administration.
Last week, Trump paused all military aid to Ukraine following a clash with the country’s President Volodymyr Zelenskyy. The confrontation happened after Trump shifted U.S. policy on Ukraine and Russia by reopening talks with Moscow.
In February, reports said that U.S. negotiators had raised the possibility of cutting Ukraine’s access to Starlink if the two countries aren’t able to successfully negotiate a deal for the U.S. to secure access to Ukraine’s rare earth minerals.
On March 4, Eutelsat said that it was in talks with the European Union to supply additional internet access to Ukraine.
The French company’s shares had already begun surging the day prior, on the back of speculation that Eutelsat could serve as a replacement for Starlink in Ukraine if negotiations with the U.S. fracture further.
Will Eutelsat replace Starlink?
For now, it’s not entirely clear. The company is discussing an expansion of its services in Ukraine with the EU.
“Everyone is asking us today, ‘Can you replace the large number of terminals of Starlink in Ukraine,’ and we are looking at that,” Eutelsat CEO Eva Berneke told Bloomberg in an interview last week.
Eutselsat arguably has the scale to offer additional support for Ukraine in terms of satellite-based connectivity. The firm says it currently has a fleet of 35 GEO satellites, in addition to an LEO constellation of more than 600 satellites.
Over the weekend, Musk and U.S. Secretary of State Marco Rubio had a spat with Poland’s foreign minister on X, the social media platform formerly known as Twitter, which Musk owns.
The tech billionaire said that Ukraine’s “entire front line” would collapse if he were to switch off Starlink.
In response, Polish Foreign Minister Radoslaw Sikorski said his country pays Starlink for services to Ukraine, which Warsaw has supported in its battle against Moscow’s invasion since 2022. Sikorski added Poland may have to seek alternative suppliers if Starlink proves to be an “unreliable provider.”
Rubio disputed Sikorski’s claims, saying “no one has made any threats about cutting Ukraine off from Starlink” and urging gratitude — while Musk dubbed the Polish politician a “small man.”
On Monday, Polish Prime Minister Donald Tusk defended his foreign minister, saying Sikorski “calmly” explained the “Polish raison d’état to officials from another country.”
Rene Haas, CEO of chip tech provider Arm Holdings, holds a replica of a chip with his company’s logo on it, during an event in which Malaysia’s Prime Minister Anwar Ibrahim officially announces a $250 million deal with the company, in Kuala Lumpur, Malaysia March 5, 2025.
Hasnoor Hussain | Reuters
Arm shares dropped more than 8% in extended trading on Wednesday after the chip-design company issued weaker-than-expected guidance for the current quarter.
Here’s how the company did in the fiscal fourth quarter compared with LSEG consensus:
- Earnings per share: 55 cents, adjusted vs. 52 cents expected
- Revenue: $1.24 billion vs. $1.23 billion
While Arm topped estimates for the quarter ended March 31, Wall Street is looking ahead to the company’s forecast for the first quarter.
Arm said revenue will be between $1 billion and $1.1 billion. The middle of the range is below the $1.1 billion average analysts estimated, according to LSEG. Earnings per share will be between 30 cents and 38 cents, while analysts were expecting 42 cents.
SoftBank controls about 90% of Arm, and took the company public in 2023. It now has a market cap of over $130 billion as of Wednesday’s close.
Arm designs the fundamental architecture upon which many chips are built, and sells licenses for its designs to companies such as Qualcomm and Nvidia, charging royalty fees on each sale they make. The company claims 99% of premium smartphones are powered by Arm technology.
Royalty revenue in the quarter rose 18% from a year earlier to $607 million.
Net income fell 6% to $210 million, or 20 cents a share, from $224 million, or 21 cents, in the year-ago quarter. Revenue jumped 34% from $928 million a year earlier.
Thomas Fuller | SOPA Images | Lightrocket | Getty Images
AppLovin shares soared as high as 15% in extended trading after the company reported earnings and revenue that beat expectations and announced the sale of its mobile gaming business.
Here’s how the company did compared to LSEG consensus estimates:
- Earnings: $1.67 per share vs $1.45 per share expected
- Revenue: $1.48 billion vs $1.38 billion expected
AppLovin also agreed on Wednesday to sell its mobile gaming business to Tripledot Studios in a deal worth $400 million in cash considerations. The advertising tech company will also obtain a roughly 20% ownership stake in Tripledot Studios, which makes mobile games like Sudoko Friends, Puzzletime and Solitaire Classic.”
The deal is expected to close in the second quarter of 2025.
AppLovin said second-quarter sales should come in the range of $1.2 billion to $1.22 billion, trailing analysts expectations of $1.38 billion.
The company reported first-quarter net income of $576 million, or $1.67 per share, up from $234 million, or 67 cents per share, in the same quarter of 2024.
AppLovin total costs and expenses for the first quarter came in at $820.55 million, representing a 14% increase from the previous year during the same quarter.
The ad-tech firm said in February that it had signed a term sheet to sell its apps business for “total estimated consideration” of $900 million, which included $500 million in cash.
AppLovin’s business has been split between advertising and apps, which is primarily made up of game studios that the company has acquired over the years. With the historic growth in its advertising unit, due to rapid advancements in artificial intelligence, the apps business had become much less important.
The company logged $1.16 billion in first-quarter advertising sales, up from the $678 million it recorded a year ago during the same period.
Sales of the company’s apps-related business for the quarter came in at $325 million, which was a 14% decline from the prior year.
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