SpaceX Is Killing Telecom Stocks: IYZ ETF Hits Longest Losing Streak Ever Against the S&P 500
Key takeaways
- SpaceX’s wireless ambitions are reshaping the telecom landscape, dragging down traditional carriers and their ETFs while lifting tower owners.
- IYZ fell 12.9% from Oct. 7 to Oct. 22
- SPY fell 1.9% in same period
- SpaceX revenue $14.58 billion, up 161% YoY
What happened
The iShares U.S. Telecommunications ETF has lost 12.9% from Oct. 7 to Oct. 22, the longest consecutive underperformance streak against the S&P 500 since its launch in 2000. The decline is driven largely by SpaceX’s aggressive push into U.S. wireless, which has pressured traditional carriers and pulled investor focus toward satellite and networking hardware. SpaceX reported Q3 revenue of $14.58 billion, up 161% YoY, and confirmed plans to build terrestrial networks and expand Starlink Mobile to…
Why it matters
SpaceX’s entry into the wireless market threatens the core businesses of AT&T, Verizon and T‑Mobile, leading to sharp sell‑offs in those stocks and a broader sell‑off in telecom‑focused ETFs. The move also highlights a shift in capital toward satellite and networking hardware, which are now under pressure as AI…
Short-term and longer-term
Short-term. In the next few days, watch for any further moves in SpaceX’s wireless plans and the carriers’ share prices.
Longer-term. Over the coming months, the telecom sector may see a realignment as SpaceX’s wireless strategy gains traction.