June 3 (Reuters) – SpaceX will disrupt the $1.6 trillion U.S. communications industry as the Elon Musk-led company’s satellite broadband unit Starlink expands, Oppenheimer said in a note on Wednesday, adding that legacy broadband providers like AT&T may be most at risk.
How does Oppenheimer view SpaceX’s long-term market potential?
What is SpaceX’s expected IPO valuation?
Which legacy broadband providers face the greatest risk?
How will Starlink disrupt the U.S. communications industry?
The brokerage raised its estimate for 2035 space revenue to $800 billion from $500 billion earlier, ahead of the company’s highly anticipated IPO this month.
• The expansion of Starlink is expected to further pressure cable firms, which are already losing subscribers.
• Oppenheimer said companies such as AT&T, Verizon Communications and T-Mobile could see faster declines in subscribers and revenue going forward.
• The brokerage expects Starlink to “entrench itself in many critical applications, reducing churn and increasing pricing power.”
• Oppenheimer raised its 2030 estimates for U.S. broadband subscribers to 15 million from 10 million earlier.
• SpaceX’s rise could also tap into the half-a-trillion-dollar handset market as the company aims to replace smartphones, Oppenheimer said.
• “Should SpaceX execute on its mission…it will be the modern-day East India Company of space, controlling routes, infrastructure, and commerce of an entire frontier and giving it a quasi-sovereign reach, far beyond that of any ordinary corporation,” Oppenheimer said.
• The company is set to debut on the Nasdaq on June 12 and is aiming to reach a $1.75 trillion valuation in the IPO, Reuters has reported.
• SpaceX’s valuation is grounded in Starlink, which has over 10 million subscribers, and a launch business that analysts and investors say has transformed access to orbit.
https://finance.yahoo.com/markets/stocks/articles/spacex-disrupt-1-6-trillion-141640758.html?shem=rimspwouoe,
