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Satellite dish in the terrestrial satellite network at the Eutelsate office. Photographer: /Bloomberg via Getty Images
Zed Jameson | Bloomberg via Getty Images
Shares of a French satellite operator Eutelsat Last week, almost 390% intensified – and the potential jump in European defense helps.
Last week, the firm’s shares on Tuesday and another 120%increased by 77%, and by 120%. From the closing of the cost on February 28 to the closing of last Friday, the shares increased by 387%.
Eutelsat shares continued to rise on Monday, jumping more than 22% as of 1:00 local time in Paris.
What is behind a big increase in Eutelsat stock prices? CNBC goes through everything you need to know.
What is Eutelsat?
Eutelsat is a French company that produces satellites to connect data. The business sends its satellites to space, using rockets from the SpaceX Elon Musk, deploying them both low orbit (Leo) and geostationary orbit (Geo).
Following the deal to combine its activity with the British satellite firm oneweb in 2023, Eutelsat became the third largest satellite operator in the world. It competes with Musk’s Starlink Satellite Internet Venture, a subsidiary of SpaceX.
Why are stocks growing rapidly?
Last week, there were reports that suggest that Eutelsat is working to potentially replace the chairman Musk in combat Ukraine. For many years, Starlink has offered Ukrainian military companions to assist in military efforts against a constant invasion of Russia.
Recently, after the presidential election, Donald Trump relations between the US and Ukraine are sour. Musk is acting as head of the recently established Department of Government Effectiveness, an advisory body that helps the administration.
Last week, Trump stopped all military assistance to Ukraine after clash with the country’s President Vladimir Zelensky. The confrontation occurred after Trump moved the US policy towards Ukraine and Russia by resuming negotiations with Moscow.
In February, the US negotiators raised the opportunity to reduce Ukraine’s access to Starlink if both countries cannot successfully agree on US transactions to access the rare earth minerals of Ukraine.
On March 4, Eutelsat said he was negotiating with the European Union to provide additional Internet access to Ukraine.
The actions of the French company have already begun to increase the day before, at the back of the assumption that Eutelsat could serve as a replacement for Starlink in Ukraine if negotiations with the US fracture.
Or replace Eutelsat Starlink?
This is not quite clear. The company discusses the expansion of its services in Ukraine with the EU.
“Everyone is asking us today,” whether you can replace a large number of Starlink terminals in Ukraine, “and we look at it,” Eutelsat CEO said in an interview with Bloomberg last week.
Eutselsat may have scale to offer additional support for Ukraine in terms of satellite connection. The firm states that it currently has a Navy of 35 GEO satellites, except for the constellation Leo with more than 600 satellites.
Last weekend, US Secretary of State Mark Rubio spent plus with the Polish Foreign Minister on X, a social media platform previously known as a Twitter that Musk owns.
The technicians said that the “whole line of the front” of Ukraine would collapse if it turn off Starlink.
In response, the Polish Foreign Minister Radol Sikorski said his country pays the chairman for the services of Ukraine, which has been supported by Warsaw in the fight against Moscow’s invasion since 2022. Sikorski added that Poland may have to look for alternative suppliers if Starlink would prove to be a “unwavering supplier”.
Rubio disputes Sikorski’s claims, saying: “Nobody did threats in the cutting of Ukraine from Starlink” and called for gratitude – while Music called the Polish politician “little man”.
On Monday, Polish Prime Minister Donald Tusk defended his foreign minister, saying that Sikorski “calmly” explained that “Polish affiliation with officials from another country”.
