A satellite dish on a satellite land network at the Eutelsat’s Madeira office. Photography: /Bloomberg through Getty Images
Zed Jameson | Bloomberg through Getty Images
Shares of the French satellite operator Eutheues It increased nearly 390% last week – and a possible change of European defense meetings has been helping the rally.
The firm’s shares pricing had extremely volatile movements last week, up to 77% on Tuesday and with 120% on Wednesday. From its closing price on February 28 until last Friday closing, shares have increased an eye watched 387%.
Eutelsat shares continued to climb Monday, throwing more than 22% from 1:00 pm with local time in Paris.
What is hiding behind the big profits of Eutelsat stock prices? CNBC permeates everything you need to know.
What is Eutelsat?
Eutelsat is a French company that produces satellites for data connection. The business sends its satellites to space using missiles from the likes of Elon Musk’s Spacex, placing them in low Earth orbit (Leo) and in the geostational orbit (Geo).
After an agreement to combine its operations with the British Satellite Firm OneWeb in 2023, Eutelsat became the third largest satellite operator in terms of income. It competes with Musk’s Starlink Satellite Internet Venture, a branch of Spacex.
Why are the shares growing?
Last week, reports appeared suggesting that Eutelsat was in the run to potentially replace Musk’s Starlink in the Embatled Ukraine. For years, Starlink has offered Ukraine’s military satellite on the Internet to help attempt the war between Russia’s continued occupation.
However, relations between the US and Ukraine have recently spilled after President Donald Trump’s election. Musk serves as the head of the newly -instilled government efficiency department, an advisory body that helps the administration.
Last week, Trump stopped all military aid in Ukraine after a clash with country President Volodymyr Zelenskyy. The showdown happened after Trump moved US policy to Ukraine and Russia reopening talks with Moscow.
In February, reports said that US negotiators had raised the possibility of cutting Ukraine entry into Starlink if both countries are unable to successfully negotiate an agreement for the US to provide access to rare land minerals in Ukraine.
On March 4, Eutelsat said he was in talks with the European Union to supply additional internet access to Ukraine.
The shares of the French company had already begun to grow the day before, in the back of speculation that Eutelsat could serve as a replacement for Starlink in Ukraine if negotiations with US fracture further.
Will the Starlink Eutelsat replace?
For now, it’s not entirely clear. The company is discussing an expansion of its services in Ukraine with the EU.
Eutselsat has the degree of questioning to provide additional support to Ukraine in terms of satellite -based connection. The firm says there is currently a fleet of 35 Geo satellites, except for a Leo constellation of more than 600 satellites.
During the weekend, Musk and US Secretary of State Marco Rubio had a spat with Poland’s Foreign Minister on X, the social media platform previously known as Twitter, which Musk owns.
Technology billionaire said Ukraine’s “entire front line” would collapse if he would turn off Starlink.
In response, Polish Foreign Minister Radoslaw Sikorski said his country pays Starlink for services in Ukraine, which Warsaw has based on her battle against Moscow’s occupation since 2022.
Rubio opposed Sikorski’s claims, saying “no one has made threats to the cutting of Ukraine from Starlink” and seeking gratitude – while Musk called the Polish politician a “little man”.
On Monday, Polish Prime Minister Donald Tusk defended his foreign minister, saying that Sikorski “calmly” explained “Raison D’état Polish for officials from another country”.