SpaceX Shares Rise Above $135 IPO Price on Boost Talks

SpaceX shares rose 3.2% to $138.98 on Monday afternoon, moving above the company's $135 initial public offering (IPO) price after The Washington Post reported talks with EchoStar about buying Boost Mobile or gaining access to its wireless network.

The stock remains below the $150 price at which it opened on its June Nasdaq debut. The rise followed a 6.37% decline on Friday, when SpaceX closed October 30 at $134.72 after falling as low as $134.50.

EchoStar shares also rose after the report. ECHO traded at $99.57, up 2.7% in the latest cash-market reading, after gaining about 4% before the opening bell. Neither company has publicly confirmed a Boost Mobile deal, and no potential purchase price has been reported.

The Washington Post reported on November 2, citing people familiar with the discussions, that SpaceX had spoken with EchoStar in recent months about either acquiring Boost Mobile or accessing the network used by the wireless provider. Elon Musk was personally involved and met EchoStar Chairman Charlie Ergen last month, the Post reported.

The Post also said SpaceX approached EchoStar after AT&T, Verizon and T-Mobile rejected Musk's requests to use their networks for a SpaceX-branded U.S. wireless service.

SpaceX is also pursuing terrestrial mobile connectivity through spectrum. FinanceFeeds reported in October that the company agreed to acquire Grain Management's nationwide 800 MHz spectrum portfolio for a reported $8 billion, adding a low-band coverage layer to Starlink Mobile.

Boost relies in part on network capacity leased from AT&T and T-Mobile. The Washington Post reported that the agreements generally cannot be transferred to another buyer without the carriers' consent, so an acquisition could still leave SpaceX needing to negotiate with the two companies.

FinanceFeeds previously examined the capacity limits of SpaceX's 800 MHz push after it triggered a major repricing of AT&T, Verizon and T-Mobile shares. The spectrum can improve coverage and indoor penetration, but does not by itself replicate the capacity of a nationwide terrestrial network.

SpaceX is entering a capital-intensive period. The company expects fourth-quarter capital spending of $35 billion to $40 billion after third-quarter capital expenditure reached $19.6 billion, with most of the spending directed toward artificial intelligence infrastructure.

Bloomberg reported last week that Anthropic was the previously unidentified "Customer B" responsible for 34.5% of SpaceX's third-quarter revenue. SpaceX reported total third-quarter revenue of about $14.6 billion, up 161% year over year.

SpaceX shares reached an intraday high of $142.05 on Monday before falling below $140 in the latest verified quote. FinanceFeeds' October 31 SpaceX stock outlook identified $140 as the first level the stock needed to reclaim after Friday's selloff.