Charter (CHTR) Stock: The SpaceX Deal That Has Wall Street Talking

TLDR

• Charter Communications stock jumped more than 9% on Monday after reports of a potential mobile partnership with SpaceX.
• SpaceX has reportedly discussed routing some Starlink traffic through Charter’s ground infrastructure, with the deal also expanding Spectrum’s broadband reach.
• T-Mobile, AT&T and Verizon stocks all fell on Monday over fears SpaceX could disrupt the wireless industry directly.
• Citi Research kept its Buy rating on Charter but cut its price target by 17% to $190, citing tough Q2 comparisons.
• Charter reports Q2 earnings before the market opens on July 24, with analysts watching broadband ARPU and merger progress with Cox Communications.

Charter Communications (CHTR) stock spiked more than 9% on Monday, one of the best performances in the S&P 500 that day. The move came after Bloomberg reported that SpaceX has discussed a possible mobile-phone partnership with the cable giant.

Charter Communications, Inc., CHTR

The reported deal would see a portion of SpaceX’s Starlink traffic run through Charter’s ground-based internet infrastructure. In exchange, Charter could gain access to Starlink’s satellite network to widen its own broadband footprint.

Wolfe Research analyst Peter Supino called the two companies “potential frenemies” in a note to clients. He said a deal could give Starlink reach into tens of millions of additional homes and public spaces, while giving Charter’s fixed broadband business a lift.

Charter’s stock pop also coincided with Comcast’s announcement Monday that it plans to spin off NBCUniversal, which helped lift sentiment for cable names generally.

What SpaceX Wants

SpaceX President Gwynne Shotwell said this month that Starlink Mobile will eventually dwarf its home broadband business. The company already serves 10.3 million global broadband subscribers as of March.

BNP Paribas analyst Sam McHugh said the Charter chatter could fuel speculation of a deeper tie-up, possibly even a merger with T-Mobile down the line. He noted a Charter deal “would create synergies but not alter the long-term prospects” of either business, while a T-Mobile deal “could be more impactful” and pose real risk to Charter.

T-Mobile’s exclusive U.S. direct-to-cell partnership with SpaceX, which bundles Starlink Mobile as a $10-a-month add-on, expires next month. Industry consultant Tim Farrar wrote that the arrangement isn’t lucrative for SpaceX, while T-Mobile has been reluctant to pay a premium for a service that accounted for just 0.0002% of its network usage in May.

T-Mobile, AT&T and Verizon stocks all fell sharply Monday. T-Mobile dropped about 5%, AT&T fell 4%, and Verizon sank 5.2%, its worst single-day drop since March 2025.

Citi Weighs In on Charter’s Earnings

Charter is set to report second-quarter earnings before the market opens on July 24. Citi Research analyst Michael Rollins expects EBITDA could come in light due to tough comparisons with last year and a broadband ARPU that’s likely to stay flat without price hikes.

Rollins flagged Charter’s 64% year-over-year share-price loss and said competitive ARPU pressure isn’t helpful for near-term performance. He also cast doubt on whether a full SpaceX mobile deal is realistic.

Rollins noted Charter’s existing mobile virtual network agreement is with Verizon, and such deals typically can’t be extended to a third party. He suggested a more likely outcome could be a distribution arrangement where Charter resells its Spectrum Mobile service alongside SpaceX, rather than a deeper infrastructure tie-up.

Despite the caution, Citi reaffirmed its Buy rating on Charter, though it trimmed its price target by 17% to $190.

TD Cowen analyst Gregory Williams said SpaceX has a handful of paths into the wireless market: do nothing, build its own infrastructure, partner with a carrier, or buy one outright. He called the uncertainty around SpaceX’s plans an “overhang” on the wireless sector.

Representatives for SpaceX did not immediately respond to a request for comment, and Charter declined to comment on the reports.

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