SpaceX (NASDAQ:SPCX | SPCX Price Prediction) never ceases to be in the headlines, it seems. SPCX stock rallied Wednesday, closing up 9.65% to $146.15; the catalyst was a company town hall meeting in which SpaceX founder Elon Musk predicted that Starlink could eventually carry the vast majority of the world’s internet traffic.
The move in SPCX stock caps a bumpy summer, with the stock barely breaking even over the past month, pressured by post-IPO dilution and a massive 911.5 million share unlock on August 6. For investors, Musk’s bold prediction could prompt them to take a closer look at their SpaceX share positions.
The 90% Prediction Behind the Rally
In a company update posted to the official @SpaceX account on X, Musk told employees the Starlink team “brought from nothing an entire global Internet system… the first high-bandwidth global Internet system to ever exist.” The X posting with the full video can be viewed here. Musk added, “I actually think that down the road it will probably do the majority of the Internet. In fact, I think it might end up doing over 90% of all Internet traffic on Starlink.”
Musk noted that Starlink already has “almost 11,000 satellites in orbit… almost twice as many satellites as everyone else combined.” He added that “with Starlink V3 and beyond, we’ll go to 100,000 satellites.”
The scale that Musk envisions is already materializing. SpaceX’s Q2 2026 Connectivity revenue hit $4.29 billion, up 66% year over year, with Starlink subscribers doubling to 12 million and Enterprise and Government revenue up 108%. Furthermore, SpaceX’s total revenue jumped 92% to $7.81 billion, easily beating estimates.
Peers and Partners Face a Concentration Problem
SpaceX’s engineering achievement deserves credit: roughly twice as many satellites as the rest of the industry combined, on a path to 100,000, is a genuinely staggering build-out. However, Musk’s forecast, if even partially accurate, describes a market structure that global communications hasn’t really seen.
Wireless calling prices have collapsed for decades because rivals kept crowding into the pipe. One operator controlling 90% of internet traffic would flip that dynamic and hand a single company enormous pricing power in a historically fragmented industry. That’s the nightmare framing for SpaceX competitors. The concern centers on market concentration.
The most-funded direct rival is Amazon‘s (NASDAQ:AMZN) Project Kuiper. Beyond Kuiper, AST SpaceMobile (NASDAQ:ASTS), Globalstar (NASDAQ:GSAT), and Viasat (NASDAQ:VSAT) are all racing to build competing direct-to-device or broadband constellations.
Terrestrial incumbents like AT&T (NYSE:T) sit in a hybrid spot. They already partner with satellite operators for direct-to-cell coverage, so they’re as much partners as competitors here, but their fiber and 5G economics look different if orbital broadband ever dominates last-mile traffic.
What to Watch Now
For thematic exposure, the Procure Space ETF (NASDAQ:UFO) is a fitting vehicle. The UFO ETF is narrow and unleveraged, and heavy weightings in names like GSAT, ASTS, and VSAT mean sector concentration cuts both ways.
Irrespective of Musk’s predictions, SPCX stock is likely to remain volatile as the space-stock sector involves a multitude of unknowns. Investors can watch for whether the Musk narrative sticks through the pending $60 billion Cursor close and the next Starship V3 flight. If the 90% forecast starts to look even directionally credible, competitor multiples may compress well before Starlink actually gets there.
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