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Eutelsat Shares Soar on Ukraine Starlink Replacement Rumors
Mar. 11, 2025 09:20AM PST
The company, which had a market capitalization below US$1 billion at the start of March, briefly surpassed US$4 billion last week as speculative trading intensified.
Phonlamai Photo / Shutterstock
Shares of French satellite operator Eutelsat Communications (EPA:ETL) soared 387 percent last week, driven by speculation that the company could replace Elon Musk’s Starlink as Ukraine’s primary satellite internet provider.
CNBC reported that Eutelsat’s share price climbed by 77 percent on March 4 and another 120 percent on March 5, before closing the week with an overall gain of 387 percent since February 28.
Eutelsat continued its rise on Monday (March 10), finishing the day at 7.46 euros.
The stock’s meteoric rise is tied to mounting concerns that Ukraine could lose access to Starlink, the satellite internet system operated by Musk’s SpaceX. Starlink has played a critical role in maintaining Ukraine’s military communications during Russia’s ongoing invasion, particularly as the country’s terrestrial networks have been severely damaged.
However, diplomatic tensions between the US and Ukraine have recently escalated, especially after US President Donald Trump halted military aid to Kyiv following a clash with Ukrainian President Volodymyr Zelenskyy.
Reports suggest that the US may leverage Ukraine’s access to Starlink in ongoing negotiations over securing Ukrainian critical minerals, a crucial resource for global technology supply chains.
On March 4, Eutelsat confirmed it was in discussions with the EU about providing internet services to Ukraine.
The company has not explicitly stated that it would replace Starlink, but CEO Eva Berneke acknowledged the possibility.
“Everyone is asking us today, ‘Can you replace the large number of terminals of Starlink in Ukraine?’ and we are looking at that,” Berneke told Bloomberg in an interview published on March 5.
Eutelsat’s rally has drawn comparisons to GameStop’s (NYSE:GME) infamous short squeezes in 2021 and 2024.
The company, which had a market cap below US$1 billion at the start of March, briefly surpassed US$4 billion last week as speculative trading intensified. Retail investors appear to have latched onto the stock not only as a financial opportunity, but also as a symbolic stand against Musk and the US government’s influence over Ukraine’s war effort.
Can Eutelsat replace Starlink?
While Starlink currently dominates the low-earth orbit (LEO) satellite market with over 7,000 active satellites, France's Eutelsat has been expanding its own capabilities.
The company operates a fleet of 35 geostationary orbit satellites, and following its 2023 merger with Britain’s OneWeb, now controls a LEO constellation of over 600 satellites. This network, while smaller than Starlink’s, could provide an alternative for certain government and defense applications in Ukraine.
Eutelsat’s OneWeb terminals, however, are significantly more expensive than Starlink’s. A OneWeb terminal costs up to US$10,000, plus a high monthly subscription fee, whereas Starlink’s equipment costs just US$589 with a monthly service fee ranging from US$95 to US$440, depending on usage.
It remains unclear whether any western donors, including France and Britain — which together own 24.8 percent of Eutelsat — will subsidize additional Ukrainian subscriptions.
Tensions over Starlink’s future in Ukraine escalated over the weekend, when Musk and US Secretary of State Marco Rubio engaged in a heated exchange with Polish Foreign Minister Radoslaw Sikorski on X (formerly Twitter).
Sikorski suggested Poland might need to find an alternative provider if Starlink proves to be unreliable.
“Be quiet, small man. You pay a tiny fraction of the cost. And there is no substitute for Starlink,” Musk responded dismissively. He also warned that Ukraine’s “entire front line” would collapse if Starlink access were revoked.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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