Elisa went ex-dividend today, and the stock dipped by almost 3.5x the detached dividend. Apparently, the market is afraid that Elon Musk will enter Elisa’s market. I think part of the drop came from the fact that all telecom operators were sold off mercilessly. AT&T is currently -6.6% and T-Mobile -6.2%.
You’d think that it wouldn’t really make sense for SpaceX to enter small Finland’s market anytime soon to significantly challenge the incumbents, especially when, among other things, the entire space and the US are still up for grabs. So if a big chunk of the drop was due to this kind of fear, it feels pretty far-fetched.
Oct 23 (Reuters) - US telecom stocks declined on Friday after a report that SpaceX was seeking thousands of cell sites for a fourth wireless carrier, fueling concerns over fresh competition.
Elon Musk’s rocket and space technology company was in talks to access at least 80,000 cell sites to build its wireless carrier from scratch, Bloomberg News reported late on Thursday, citing sources familiar with the matter.