The stock market witnessed an extraordinary surge in Eutelsat’s shares last week, with a remarkable increase of 387% since February 28. This rally was further supported on Monday, when the company’s stock gained more than 22% during the trading day.
At the heart of this surge lie speculations surrounding the potential involvement of the French satellite provider in supplying satellite services to Ukraine. This comes amid growing concerns over the reliability and availability of Starlink, the satellite internet system managed by SpaceX and Elon Musk, which has been playing a crucial role in Ukraine’s communication infrastructure during the ongoing conflict.
Eutelsat’s sudden rise in stock value can be attributed to the belief that the company could step in to provide critical satellite services to Ukraine, filling the void left by any potential disruption to Starlink. Investors have reacted swiftly to these speculations, fueling the massive uptick in the company’s shares.
This rally is a reminder of how geopolitical developments and shifting market dynamics can cause significant volatility, with companies like Eutelsat potentially benefitting from high-stakes international situations.