Charter (CHTR) Stock Surges 9% on SpaceX Partnership Rumors

Key Takeaways

• Charter Communications shares surged over 9% Monday following news reports about a potential mobile collaboration with SpaceX.
• Reports indicate SpaceX may route certain Starlink traffic through Charter’s terrestrial network infrastructure while expanding Spectrum’s broadband capabilities.
• Shares of T-Mobile, AT&T, and Verizon declined Monday amid concerns that SpaceX could disrupt the traditional wireless market.
• Citi Research maintained its Buy recommendation on Charter while reducing its price target 17% to $190 due to challenging Q2 year-over-year metrics.
• The company is scheduled to announce Q2 results on July 24 before market open, with focus on broadband average revenue per user and potential Cox Communications merger developments.

Shares of Charter Communications (CHTR) climbed more than 9% during Monday’s trading session, marking one of the strongest gains in the S&P 500 index. The rally followed a Bloomberg report detailing potential discussions between SpaceX and the cable operator regarding a mobile-phone collaboration.

Charter Communications, Inc., CHTR

According to the reports, the proposed arrangement would involve SpaceX routing some Starlink satellite traffic through Charter’s terrestrial internet network. As part of the agreement, Charter would potentially access Starlink’s satellite infrastructure to extend its broadband coverage area.

Wolfe Research’s Peter Supino described the two entities as “potential frenemies” in commentary shared with investors. He suggested the arrangement could provide Starlink with connectivity to millions of additional residences and public locations, while simultaneously strengthening Charter’s fixed-line broadband operations.

The stock’s Monday rally was also supported by Comcast’s announcement to spin off NBCUniversal, which generated positive momentum across cable sector stocks more broadly.

SpaceX’s Mobile Ambitions

SpaceX President Gwynne Shotwell indicated earlier this month that Starlink Mobile is projected to ultimately exceed the company’s residential broadband operations. The service currently has 10.3 million global broadband customers as of March data.

BNP Paribas analyst Sam McHugh suggested the Charter discussions might spark speculation about more extensive partnerships, potentially including a future T-Mobile merger. He observed that a Charter arrangement “would create synergies but not alter the long-term prospects” of either company, whereas a T-Mobile combination “could be more impactful” and represent genuine risk to Charter’s business model.

T-Mobile’s exclusive U.S. direct-to-cellular agreement with SpaceX, which offers Starlink Mobile as a $10 monthly add-on service, is set to expire next month. Industry analyst Tim Farrar noted the current arrangement doesn’t generate substantial revenue for SpaceX, while T-Mobile has shown resistance to paying higher fees for a service that represented only 0.0002% of its network traffic in May.

Major wireless carrier stocks declined sharply Monday. T-Mobile dropped approximately 5%, AT&T fell 4%, and Verizon plunged 5.2%, marking its steepest single-session decline since March 2025.

Analyst Perspectives on Charter’s Upcoming Results

Charter will release second-quarter financial results before the opening bell on July 24. Citi Research’s Michael Rollins anticipates EBITDA may disappoint due to difficult year-over-year comparisons and flat broadband average revenue per user without price increases.

Rollins highlighted Charter’s 64% year-over-year share price decline and noted that competitive ARPU challenges create headwinds for near-term stock performance. He also questioned whether a comprehensive SpaceX mobile partnership is feasible.

Rollins pointed out that Charter’s current mobile virtual network operator agreement is with Verizon, and such contracts typically prohibit extension to additional parties. He proposed a more probable scenario might involve a distribution agreement where Charter markets its Spectrum Mobile service alongside SpaceX offerings, rather than a comprehensive infrastructure partnership.

Despite these reservations, Citi maintained its Buy rating on Charter while reducing its price target 17% to $190.

TD Cowen’s Gregory Williams outlined several potential routes for SpaceX in the wireless industry: maintain current status, construct proprietary infrastructure, form a carrier partnership, or acquire an existing carrier. He characterized the uncertainty surrounding SpaceX’s wireless strategy as an “overhang” affecting the broader wireless sector.

SpaceX representatives did not respond to requests for comment, and Charter declined to address the partnership reports.

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