On Monday, November 2, the former hedge fund manager and popular TV personality, Jim Cramer, reacted with apparent excitement to the news that SpaceX (NASDAQ: SPCX) is negotiating with EchoStar over the wireless telecommunications brand Boost Mobile.
Specifically, Cramer explained that, should an agreement be reached, the questions regarding how Elon Musk’s newer public company would reach customers in its recent telecommunications drive would be removed.
He also seemingly estimates that a deal with EchoStar has the potential to negate any possible downside from the massive late October stock unlock, while also questioning other analysts’ apparent failure to foresee such negotiations.
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Notably, Jim Cramer also seems to have admitted in the X post that he was himself surprised by the development.
What is known about SpaceX’s Boost Mobile negotiations
Meanwhile, little is known about the discussions other than that SpaceX appears to be hoping to offer its wireless services through EchoStar’s Boost Mobile.
What is known, however, is that an agreement would boost the reach of Elon Musk’s newer public company and help advance its ambitions to challenge traditional telecommunications providers in the U.S.
Indeed, SpaceX announced it reached ‘an agreement to acquire a nationwide low-band spectrum license portfolio’, enabling Starlink to ‘become a major mobile carrier’ on October 8.
Investors react to SpaceX’s negotiations with Boost Mobile
Elsewhere, investors appear unmoved by the reported discussions between SpaceX and EchoStar over the Boost Mobile brand. During the regular session on Monday, November 2, SPCX shares rallied a relatively modest 1.22% to $136.37.
The Tuesday pre-market, however, appears to be showing signs of growing trader excitement, with SpaceX stock rising 1.21% to its press time price of $138.03.
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Still, the lack of decisive reaction is, arguably, to be expected. On the one hand, few details are known about the negotiations, and the goals of the talks remain generally unknown.
On the other hand, SpaceX itself, despite its evident telecommunications ambitions, identified artificial intelligence (AI) as its main future revenue opportunity rather than internet or rocket launch services, thus diminishing the impact of developments on other fronts.
Lastly, Wall Street analysts are already estimating SPCX shares can rally more than 60% in the next 12 months even without a mobile expansion, a prediction that would see the firm’s market capitalization soar above $3 trillion.
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