A satellite dish on a satellite terrestrial network at the Madeira de Eutelsat office. Photographer: /Bloomberg through Getty Images
Zed Jameson | Bloomberg Via Getty Images
French satellite operator shares Eutelsat Last week, almost 390%fired, and a potential change from European defense helped the rally.
The pricing of the signature shares saw that last week it moved volatile, up to 77% on Tuesday and another 120% on Wednesday. From its closing price on February 28 to the closing last Friday, shares have increased by 387%.
Eutelsat’s shares continued to climb on Monday, jumping more than 22% from 13:00 local in Paris.
What is behind the enormous prices of prices of Eutelsat shares? CNBC resorts to everything you need to know.
What is Eutelsat?
Eutelsat is a French company that produces satellites for data connectivity. The business sends its satellites to the space with rockets of the Spacex carving of Elon Musk, deploying them in both low terrestrial orbit (Leo) and geostationary orbit (GEO).
Following an agreement to combine its operations with the British satellite firm Oneweb in 2023, Eutelsat became the third largest satellite operator in the world in terms of income. Compete with Starlink Satellite Internet Venture, a Spacex subsidiary.
Why do actions shoot?
Last week, reports that suggest that Eutelsat was in operation to replace the Musk bond in the wrapped Ukraine. For years, Starlink has offered Ukraine military satellite its Internet services to help in the war effort in the midst of Russia’s ongoing invasion.
However, relations between the United States and Ukraine have recently been after the election of President Donald Trump. Musk serves as head of the recent government efficiency department, an assisted body that attends the administration.
Last week, Trump paused all military help in Ukraine after a clash with the President of the Volodymyr Zelenskyy country president. The clash took place after Trump moved North -American politics over Ukraine and Russia to reopen conversations with Moscow.
In February, reports said that North -American negotiators had proposed to cut off Ukraine access to Starlink if the two countries cannot successfully negotiate an agreement for the United States to ensure access to Ukraine’s rare land minerals.
On March 4, Eutelsat said it was in talks with the European Union to supply additional access to the Internet to Ukraine.
The actions of the French company had already begun to increase the day before, at the back of the speculations that Eutelsat could serve as a replacement from Starlink to Ukraine if negotiations with the United States fracture even more.
Will Eutelsat replace Starlink?
For now, it is not completely clear. The company discusses an expansion of its services to Ukraine with the EU.
« Everyone asks us today, » you can replace the large number of Starlink terminals in Ukraine, « and we are looking at it, » Etelsat’s CEO, Eva Berneke, told Blenerke in Bloomberg in an interview last week.
Euptselsat has, without a doubt, the scale to offer additional support to Ukraine in terms of satellite -based connectivity. The firm says that it currently has a fleet of 35 Geo satellites, as well as a Leo constellation of more than 600 satellites.
During the weekend, Musk and the Secretary of State of the United States, Marco Rubio, had an outbreak with the Foreign Minister of Poland in X, the social media platform formerly known as Twitter, which Musk possesses.
The technology billionaire said that Ukraine’s « front line » would collapse if he had to turn off Starlink.
In response, Polish Foreign Minister Radoslaw Sikorski said that his country pays Starlink for services to Ukraine, which Warsaw has supported his battle against the invasion of Moscow since 2022. Sikorski added that Poland may have to look for alternative assumptions if Starlink proves to be a « unreliable supplier ».
Rubio disputed the claims of Sikorski, saying « no one has made a threat to cut Starlink’s Ukraine » and urge gratitude, while Musk christened the Polish politician a « little man. »
On Monday, Polish Prime Minister Donald Tusk defended his Minister of Foreign Affairs, saying that Sikorski « with calm » explained the « Polish Raison of Etat to officials in another country. »
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