French satellite operator Eutelsat Communications S.A. has risen over 630% since Monday, following President Donald Trump‘s announcement of a freeze in Ukraine’s military aid.
What Happened: Eutelsat’s surge comes as the French company is in talks with the European Union to replace SpaceX’s Starlink satellite service in Ukraine, according to a report by Investing.com.
CEO Eva Berneke told Bloomberg TV on Thursday that the company was looking into the requests of replacing several Starlink terminals in Ukraine. While the company already has a presence in Ukraine, Berneke said that it would take a few months to replace around 40,000 Starlink terminals.
Elon Musk owned SpaceX makes Starlink, which is a satellite internet service that delivers high-speed, low-latency broadband globally, especially to remote areas underserved by traditional internet providers.
President Trump on Monday temporarily suspended U.S. military aid to Ukraine to pressure Ukrainian President Volodymyr Zelenskyy into peace negotiations with Russia. According to the White House, the freeze will remain in place until Trump determines that Ukraine has made a meaningful effort toward diplomatic talks with Moscow.
Why It Matters: Eutelsat’s shares have surged 631.1% from €1.19 or $1.29 on Friday, Feb. 28, to €8.7 or $9.40 intraday on Thursday.
Investor interest in defense stocks has increased after Trump’s announcements in anticipation of increased demand for their products and services as European nations are rallying to support Ukraine.
British Prime Minister Keir Starmer has pledged a £2.26 billion loan for military supplies. Meanwhile, Germany’s prospective coalition government is planning to create a €500 billion or $540.532 billion infrastructure fund to modernize the military and boost economic growth, reported Reuters.
Price Action: The SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, fell in premarket on Thursday. SPY decline 0.68% to $579.10 and QQQ was down 0.84% to $497.79, according to Benzinga Pro data.
On Wednesday, the SPY advanced 1.07% to $583.06, and the QQQ rose 1.30% to $502.01.
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