Starlink's Disruption of Legacy Broadband Providers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: NASDAQ.COM
- Subscriber Growth Potential: Starlink reported 10.3 million subscribers at the end of Q1, with Oppenheimer forecasting a rise to 15 million by 2030, indicating significant growth potential that could disrupt the traditional broadband market.
- Competitive Advantage: By delivering low-latency, high-speed internet from space, Starlink differentiates itself from traditional networks reliant on ground infrastructure, particularly excelling in low-density areas, which may increase market pressure on Verizon and AT&T.
- Business Expansion Opportunities: Oppenheimer suggests that Starlink could evolve beyond consumer broadband into critical sectors like emergency response and military operations, potentially reducing churn rates and enhancing pricing power, thereby strengthening its market position.
- Industry Transformation Signal: Oppenheimer raised its 2035 space economy revenue projection from $500 billion to $800 billion, indicating robust growth trends in space infrastructure that may prompt investors to reassess their strategies regarding traditional telecom companies.
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Analyst Views on VZ
Wall Street analysts forecast VZ stock price to rise
14 Analyst Rating
4 Buy
10 Hold
0 Sell
Moderate Buy
Current: 45.440
Low
43.00
Averages
46.42
High
51.00
Current: 45.440
Low
43.00
Averages
46.42
High
51.00
About VZ
Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communications, technology, information and streaming products and services to consumers, businesses and government entities. Its Consumer segment provides wireless and wireline communications services. It also provides fixed wireless access (FWA) broadband through its 5G or 4G Long-Term Evolution (LTE) networks portfolio. The Company's Business segment provides wireless and wireline communications services and products, including FWA broadband, data, video and advanced communication services, corporate networking solutions, security and managed network services, local and long-distance voice services and network access to deliver various Internet of Things (IoT) services and products. It provides these products and services to businesses, public sector customers and wireless and wireline carriers across the U.S. and a subset of these products and services to customers around the world.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Competitive Advantage: By delivering low-latency, high-speed internet from space, Starlink differentiates itself from traditional networks reliant on ground infrastructure, particularly excelling in low-density areas, which may increase market pressure on Verizon and AT&T.
- Business Expansion Opportunities: Oppenheimer suggests that Starlink could evolve beyond consumer broadband into critical sectors like emergency response and military operations, potentially reducing churn rates and enhancing pricing power, thereby strengthening its market position.
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See More
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- Rocket Lab Performance: Rocket Lab reported approximately $602 million in revenue for 2025, a 38% year-over-year increase, and achieved record revenue of $200 million in Q1 2026, demonstrating strong growth potential in the launch services market.
- Redwire's Technological Edge: Redwire generated about $335 million in revenue in 2025, focusing on providing essential technology components for space missions, and reported $97 million in revenue in Q1 2026, highlighting its significant role in national security and commercial space projects.
- AST SpaceMobile's Market Opportunity: AST SpaceMobile aims to create a satellite network that connects directly to ordinary smartphones, potentially generating up to $6 billion in annual revenue if successful, and has signed agreements with carriers representing over 3 billion subscribers, indicating substantial market potential.
See More
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- Rocket Lab's Revenue Surge: In 2025, Rocket Lab reported approximately $602 million in revenue, a 38% year-over-year increase, and ended the year with a record backlog of $1.85 billion, indicating strong visibility for future business.
- Redwire's Market Positioning: Redwire generated about $335 million in revenue in 2025, focusing on providing critical technologies for commercial, civil, and defense customers, with Q1 2026 revenue at $97 million and a backlog of $498.1 million, highlighting its significant role in space infrastructure.
- AST SpaceMobile's Market Potential: AST SpaceMobile aims to create a satellite network that connects directly to ordinary smartphones, and if successful, could generate $3 billion in annual revenue from just 50 million users, showcasing its enormous market opportunity.
- Impact of SpaceX IPO: The upcoming SpaceX IPO is expected to attract more investors to the space industry, potentially benefiting companies like Rocket Lab, Redwire, and AST SpaceMobile through a halo effect that enhances their market valuations and investor interest.
See More
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- Historic IPO: SpaceX plans to go public on June 12, aiming to raise $75 billion at a $2 trillion valuation, potentially reshaping the investment landscape in the aerospace sector and attracting significant investor interest.
- Market Reaction: While many investors are selling other stocks to buy SpaceX shares, AST SpaceMobile's stock has rallied over 30%, indicating its unique competitiveness in the satellite internet market and investor confidence.
- Business Model Comparison: Both AST and SpaceX's Starlink provide low Earth orbit satellite internet services, but AST relies on partnerships with telecom giants while Starlink offers its own internet service, leading to significant differences in market positioning and profitability.
- Growth Potential Analysis: SpaceX's revenue is expected to grow at a 30% CAGR from 2025 to 2028, while AST's revenue is projected to grow at a staggering 198% CAGR, suggesting AST may achieve profitability sooner, prompting investors to carefully evaluate the investment merits of both companies.
See More
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- SpaceX IPO Scale: SpaceX is set to go public on June 12, aiming to raise $75 billion at a $2 trillion valuation, marking the largest IPO in history, which could significantly impact market liquidity as investors reposition their portfolios.
- AST Resilience: Despite a broader sell-off, AST SpaceMobile's stock has surged over 30% this year, indicating its resilience in the satellite internet services market and potentially attracting investor interest in its long-term growth prospects.
- Business Model Differences: AST and SpaceX's Starlink operate under different business models, with AST partnering with telecom giants while Starlink offers independent satellite internet services, creating distinct competitive advantages in their respective markets.
- Future Growth Expectations: Analysts project AST's revenue to grow at a 198% CAGR from 2025 to 2028, reaching $1.9 billion, while SpaceX's revenue is expected to grow at 30% to $41.1 billion, suggesting AST may present a more attractive profitability outlook in the long run.
See More
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- User Growth Potential: Oppenheimer reports that Starlink had 10.3 million subscribers at the end of Q1 2023, with projections to reach 15 million by 2030, indicating rapid growth that could significantly pressure traditional telecom companies.
- Market Competitive Edge: By delivering low-latency, high-speed satellite internet, Starlink can outperform traditional telecom networks reliant on ground infrastructure, particularly in low-density areas, positioning itself favorably in the future communications landscape.
- Industry Transformation Risks: As Starlink accelerates its growth, traditional telecoms like Verizon and AT&T may face risks of subscriber erosion, compressed profit margins, and a shrinking market size, prompting investors to reassess the value of these companies.
- Space Economy Outlook: Oppenheimer raised its 2035 space economy revenue forecast from $500 billion to $800 billion, highlighting the long-term growth potential of orbital infrastructure, suggesting investors consider reallocating their portfolios away from traditional telecoms.
See More
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- Subscriber Growth Potential: Starlink reported 10.3 million subscribers at the end of Q1, with Oppenheimer forecasting a rise to 15 million by 2030, indicating significant growth potential that could disrupt the traditional broadband market.
- Competitive Advantage: By delivering low-latency, high-speed internet from space, Starlink differentiates itself from traditional networks reliant on ground infrastructure, particularly excelling in low-density areas, which may increase market pressure on Verizon and AT&T.
- Business Expansion Opportunities: Oppenheimer suggests that Starlink could evolve beyond consumer broadband into critical sectors like emergency response and military operations, potentially reducing churn rates and enhancing pricing power, thereby strengthening its market position.
- Industry Transformation Signal: Oppenheimer raised its 2035 space economy revenue projection from $500 billion to $800 billion, indicating robust growth trends in space infrastructure that may prompt investors to reassess their strategies regarding traditional telecom companies.
See More
