Eutelsat's Rollercoaster: SpaceX Euphoria and EU Spectrum Play Send Shares on a Wild Ride

The session started with promise and ended in a bloodbath. Eutelsat shares touched levels not seen since early 2024 mid-week, only to collapse 11.71% on Friday, closing at €3.95. Beneath the surface, two powerful narratives were wrestling for control of the stock: the frothy anticipation of a SpaceX initial public offering and a strategically bold EU spectrum proposal that could reshape the competitive landscape.

Investors spent the first four days chasing a SpaceX-induced rally. When Elon Musk’s rocket company filed its IPO paperwork in mid-May, European space and satellite stocks immediately caught fire. Eutelsat soared roughly 10% on 21 May, then added another 20% on 26 May, pushing the stock to a one-year high. OHB climbed about 12% over the same stretch, and SES gained roughly 3.5%. The logic behind the buying spree was simple: a potential record-breaking IPO could draw deep-pocketed institutional investors into the entire space sector, sparking a rerating of cheap European satellite operators.

“Some investors have appetite for exposure in this segment and hope for a possible revaluation of European valuations,” noted ODDO-BHF analyst Stéphane Beyazian. Andres Sheppard of Cantor Fitzgerald echoed the sentiment in a client note, arguing that the SpaceX listing is steering more capital and attention toward well-positioned industry players. The rally looked unstoppable until Friday, when profit-taking struck with a vengeance.

But the week brought another catalyst that may have longer legs. On 27 May, the European Commission proposed new rules for the 2 GHz mobile satellite spectrum band, whose current licenses expire in 2027. Brussels designated the band a strategic resource for both commercial applications and security/defence needs. According to Agence Europe, one-third of the commercial capacity would be reserved exclusively for EU operators, and a separate government-services block would also be off-limits to non-European providers. Only one-third of the total spectrum would remain open to US players such as Starlink and Amazon Kuiper. Reuters described the plan as a clear handicap for American rivals and a deliberate push to strengthen the domestic space industry.

Should investors sell immediately? Or is it worth buying Eutelsat?

The proposal is not yet law — it must still be approved by EU member states and the European Parliament, with a final legal act unlikely before 2027. However, the direction is unmistakable, and Eutelsat stands to benefit. The Paris-based satellite operator, formed by the 2023 merger with OneWeb, operates 31 geostationary satellites and a low-Earth-orbit constellation of more than 600 spacecraft. Its business spans video, mobile connectivity, fixed network and government services — all areas that could gain from spectrum protection.

The company’s recent operational results give the speculation a fundamental anchor. In the fiscal third quarter of 2026, revenue reached €293 million, up 3.1% on a like-for-like basis. The connectivity segment, powered by LEO solutions, surged 65%. The total order backlog stood at €3.4 billion, equivalent to 2.8 years of guaranteed revenue, with connectivity already accounting for 58% of that backlog. Eutelsat also completed a comprehensive refinancing, including a €1.5 billion bond issuance as part of a larger €5 billion programme.

Yet the picture is not uniformly bright. Video revenue plunged 13.3% as sanctions and contract cancellations left structural scars that no IPO fever can erase. The stock’s valuation has run far ahead of analyst expectations. Since the start of the year, Eutelsat shares have more than doubled, gaining over 120%. The current price of €3.95 sits roughly 49% above its 200-day moving average — a level that historically signals stretched short-term valuations. No analyst recommends buying the stock; the average price target is €2.49, implying a 37% downside from Friday’s close. Eric Sterner, chief investment officer at Apollon Wealth Management, warned that many of these space companies are unprofitable and their valuations already ambitious.

Eutelsat at a turning point? This analysis reveals what investors need to know now.

Friday’s rout, however, appears to be a classic case of profit-taking rather than a fundamental reversal. The relative strength index dropped to 21.2, deep in oversold territory. Despite the wipeout, the stock still ended the week with a gain of roughly 5.6%, and the EU spectrum proposal provides a long-term narrative that could support the shares if the legislative process gains momentum.

Looking ahead, the next concrete test for Eutelsat will come in August 2026 with the release of full-year results. Until then, the stock is likely to remain a vehicle for SpaceX fantasy and Brussels-inspired strategic bets — a high-octane combination that promises plenty of volatility before any real clarity arrives.

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