On March 10, Elon Musk’s social media platform X suffered a protracted global outage. After a long silence, the billionaire and the company announced that the blackout resulted from a major cyberattack, allegedly originating in Ukraine.
If proven true, the attack is likely to further damage the relations between the South African-Canadian-American businessman and the Eastern European country and increase the likelihood of Starlink withdrawing its support for the Armed Forces of Ukraine (AFU).
Under the circumstances, and with uncertainty and fear prevailing in the American stock market, a comparatively unknown company in France may be worth investing in to take advantage of the shifting situation.
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Why Eutelsat may be the perfect investment for 2025
Last week, the French satellite and telecommunications giant Eutelsat (EPA: ETL) made headlines as the news that it may get EU backing in replacing Starlink sent its stock to the moon.
Indeed, the rally proved so strong that it ensured that Eutelsat stock is 333.71% up on the monthly chart and currently changing hands at €7.58 (~$8.28).
Between Musk’s increasingly likely downsizing of operations in Ukraine – and perhaps even a full exit – and the EU’s ambitious investment plan in its infrastructure and military-industrial complex, Eutelsat shares may only be at the beginning of their 2025 rally.
Why Eutelsat stock is not guaranteed to be a winning bet
Elsewhere, Eutelsat shares’ apparent inability to decisively break above approximately €7.80 indicates there remains room for caution. This is further bolstered by the fact that the exact scale of the EU’s support remains uncertain and that the complete investigation into the cyberattack may lead X away from Ukraine.
Simultaneously, though much of the French firm’s rally was driven by a belief that it would replace Starlink in Ukraine, Musk did emphasize that, for all of his disagreements with the country’s policies, he wouldn’t shut down the terminals.
Furthermore, there are more general concerns about the entire situation with the Union and with any investments counting on the continuation of the war in Ukraine, as the Trump administration has been pushing hard for a ceasefire.
The renowned economist and politician, Yanis Varoufakis, also cast doubt on the EU’s rearming program, warning that ‘Military Keynesianism doesn’t work, unless you start one war after the other US-style.’
Varoufakis identified Germany’s ambitious spending program as more of a last-ditch effort to bolster its automotive industry with tank production than a genuinely sustainable program.
Despite this, Eutelsat could, in the long run, remain a worthwhile stock to keep in one’s portfolio. Even if there is a certain overlap between telecommunications and the military, it is a satellite internet company first and foremost.
Given Elon Musk’s current relationship with Europe and its impact on Tesla (NASDAQ: TSLA) sales, Starlink might soon face a shortage of customers, and Eutelsat is well-positioned to capture the market.
