SpaceX Buys Nationwide 800 MHz Spectrum, Sending Tower Stocks Soaring
CCI sits 19% above its 52-week low of $65.32 on elevated volume (2.4× avg).
Summary
SpaceX agreed to buy Grain Management's nationwide 800 MHz spectrum, a low-band asset that could support its Starlink Mobile service. The deal's financial terms were not disclosed. Crown Castle shares jumped 12.95% to $77.82 as investors bet SpaceX will need to lease space on existing towers to build out a terrestrial network. Crown Castle, American Tower, and SBA Communications all stand to benefit if SpaceX becomes a new tenant. This follows Crown Castle's Q2 AFFO beat and raised guidance in July, and the CFO and COO departures announced in September. The spectrum purchase is a potential new revenue stream for tower owners, but no lease agreements have been signed.
At the time of this announcement, CCI was trading at $77.75 on NYSE in the Real Estate & Construction sector, with a market capitalization of approximately $33.1B. The 52-week trading range was $65.32 to $100.50. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Benzinga.