Shares of French satellite provider Eutelsat have surged by more than 500% following growing concerns over the potential disruption of Ukraine’s Starlink access. This spike in stock value came after the U.S. suspended aid to Ukraine, raising fears of significant setbacks in Ukraine’s military communications, particularly its access to internet services provided by Starlink, owned by Elon Musk’s SpaceX.
Eutelsat’s shares on the Paris stock exchange experienced a dramatic rise, jumping 68% on Monday, followed by a further 123% increase the next day. By the close of trading on Wednesday, the stock had reached $8.34, marking a 533% increase from the beginning of the week. This surge propelled Eutelsat’s market value to $4.02 billion.
The catalyst for the rise appears to be investor speculation that Ukraine’s reliance on Starlink could be in jeopardy, particularly following the suspension of U.S. aid, which might threaten access to crucial military technologies, including satellite internet. Since the start of the Russia-Ukraine conflict, Starlink has been essential for Ukraine’s communication, especially for its military operations and drone management. Losing this vital connection could cripple the country’s coordination and defense capabilities.
Eutelsat, which merged with Starlink competitor OneWeb in 2023, has been highlighted as a potential replacement for Starlink in providing satellite internet services to Ukraine. The company has been in discussions with European Union officials about contributing to Ukraine’s internet needs, with assurances that it offers similar capabilities to Starlink in terms of coverage and latency. Eutelsat’s spokesperson emphasized their efforts to deploy additional user terminals for critical missions.
Despite the rapid stock increase, Eutelsat’s shares are still far from their previous peak, having reached over $33 in 2015. Over the past decade, the company has seen a steady decline due to its reliance on higher orbit satellites, which have been overshadowed by the rise of low-Earth orbit satellites like Starlink’s. However, the merger with OneWeb has enabled Eutelsat to compete with Starlink’s constellation of low-Earth orbit satellites.
While the future of Ukraine’s access to Starlink remains unclear, with Musk denying reports that the U.S. might cut off service if Ukraine rejects a minerals deal, European countries have expressed a willingness to continue supporting Ukraine’s satellite needs. Poland, which funds a significant portion of Ukraine’s Starlink terminals, has confirmed its commitment to maintain that support.
Eutelsat’s boost in stock price also coincides with the broader surge in European defense manufacturing shares, driven by tensions between the U.S. and its traditional allies and Ukraine. European Commission President Ursula von der Leyen announced that European leaders would allocate approximately 800 billion euros ($840 billion) to defense spending, further emphasizing the continent’s focus on strengthening its defense and technological capabilities.
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