SpaceX Stock Price Forecast: Acquires US 800MHz Spectrum, Surges Over 4% Pre-Market, May Support Stock to Challenge $200 Again

TradingKey - SpaceX (SPCX) stock rebounded in pre-market trading on October 9, Eastern Time, after pulling back noticeably in the previous trading session. As of press time, SPCX traded at around $167 in pre-market, up about 4.1%; on October 8, the stock fell 4.19% to close at $160.57, after touching an intraday low of $160. The primary reason for the pre-market gain in SPCX stock was SpaceX's announcement of acquiring nationwide 800MHz low-band wireless spectrum.

SpaceX Expands Starlink Mobile Footprint With US Nationwide 800MHz Spectrum Acquisition

SpaceX announced that it has reached an agreement with private equity firm Grain Management to acquire the latter's portfolio of nationwide 800MHz low-band spectrum assets, involving up to 14MHz of paired spectrum.

The key focus of this acquisition is that 800MHz belongs to low-band spectrum. Compared to higher frequency bands, low-frequency signals travel longer distances and have greater penetration capabilities through buildings and other obstacles, while a large number of smartphones currently support this band. SpaceX plans to combine the low-band spectrum with its existing Starlink satellite network and terrestrial communications infrastructure to expand Starlink Mobile's service capabilities indoors and in areas with insufficient traditional cellular coverage.

This transaction also marks a further expansion of SpaceX's business model in the mobile communications sector. Previously, Starlink's direct-to-cell service mainly relied on satellite networks and partnerships with carriers such as T-Mobile US (TMUS), but acquiring nationwide low-band spectrum provides the company with the spectrum foundation to further build its own terrestrial network. Meanwhile, the FCC had previously approved SpaceX to deploy up to 15,000 next-generation Starlink Mobile satellites.

Following the announcement, shares of traditional U.S. wireless carriers reacted sharply, with AT&T (T), Verizon (VZ), and T-Mobile all falling more than 6% at one point in pre-market trading, while SPCX shares rose over 4% pre-market. This market reaction reflects investors re-evaluating the potential changes in the competitive landscape following SpaceX's entry into the U.S. wireless communications market.

SPCX Stock Price Technical Analysis

SPCX daily stock price chart, Source: TradingView

Looking at the daily chart of SPCX, the stock price began a new rally in early October and briefly broke above $172 intraday on October 6. However, the closing price that day remained below $172, indicating a failed breakout that subsequently triggered a pullback over the past two consecutive trading sessions.

However, judging from the stock's recent price action, as it set a period high since June 30 on October 6, further upside space has opened up. Meanwhile, the 5-day, 10-day, and 20-day moving averages remain in a bullish alignment, indicating that the stock's short-term trend remains bullish.

Currently, the primary resistance zone above lies in the $172-$176.42 range. If the stock can strongly break through and hold above $172, it will open up upside room toward $200.

On the downside, the primary support level below is near $158, which also coincides with the 10-day moving average, potentially creating a confluence of support. If this level fails to hold, the stock price may pull back further toward $150.