SpaceX to buy wireless spectrum licenses from Grain
SpaceX agreed to buy cellular spectrum licenses from Grain Management for about $8 billion in cash, according to people familiar with the matter. The deal is the company’s biggest move yet into the wireless market and its shares rose after hours.
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01:00:52 AM UTC
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01:03:51 AM UTC
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By Ed Carson Dow Jones futures rose slightly overnight, while S&P 500 futures and Nasdaq futures rose slightly. Delta Air Lines reports earnings before the open, kicking off results for airlines and travel plays. Space Exploration Technologies, or SpaceX, plans to buy significant wireless spectrum, bolstering its Starlink service. The news slammed shares of wireless giants Verizon Communications, AT&T and T-Mobile US in after-hours action, while also hitting AST SpaceMobile. The stock market retreated Thursday, with the Nasdaq skidding as OpenAI news raised AI concerns. But much of the market held its ground as Treasury yields reversed lower and oil prices came off intraday highs. Apple and GigaCloud Technology are in buy areas while Snowflake, GE Vernova and Dell Technologies are pausing bullishly. Quanta Services, Comfort Systems and Credo Technology are pausing bullishly. GigaCloud and Snowflake stock are on the IBD 50. GigaCloud was Thursday's IBD Stock Of The Day. The video embedded in the article reviews Thursday's market action and analyzes GigaCloud Technology, Snowflake and GE Vernova stock. DOW JONES FUTURES TODAY Dow Jones futures climbed 0.2% and S&P 500 futures rose 0.15% and Nasdaq-100 futures edged higher. Crude oil futures edged lower. Remember that overnight action in Dow futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session. Join IBD experts as they analyze leading stocks and the market on IBD Live SPACEX BUYS WIRELESS SPECTRUM SpaceX will buy wireless spectrum from Grain Management, subject to regulatory approval. That will help SpaceX's Starlink into greater competition vs. Verizon Communications, AT&T and T-Mobile US. SpaceX stock rose over 2% late. Shares fell 4.2% in Thursday's session, but still above an aggressive entry. Verizon stock fell 6% in overnight action. So did AT&T stock and T-Mobile. AST SpaceMobile fell more than 3%. STOCK MARKET RALLY The stock market rally saw a reversal of recent trends. The Nasdaq suffered sharp afternoon losses after the Financial Times reported that OpenAI recently told investors it sees annualized revenue at $50 billion ---- far less than prior reports of $70 billion. That higher figure apparently reflected inaccurate investor assumptions. Still, the lower $50 billion figure raised concerns about the strength of AI demand and thus the sustainability of massive AI spending. Separately, Nvidia-backed Firmus reportedly suspended its IPO after the Australian data center play saw weak demand. Meanwhile, much of the rest of the market rose or at least held its ground as oil prices pared big gains and Treasury yields reversed lower. The Dow Jones Industrial Average rose 0.1% in Thursday's stock market trading. The S&P 500 index fell 0.5%. The Nasdaq composite tumbled 1.25%, though it came off session lows. The small-cap Russell 2000 edged higher, holding its 200-day line after skidding in morning trade. The Inves