{"id":3815,"date":"2025-03-11T16:06:02","date_gmt":"2025-03-11T15:06:02","guid":{"rendered":"https:\/\/stocksoft.com.pl\/?post_type=news&#038;p=3815"},"modified":"2025-03-06T16:11:53","modified_gmt":"2025-03-06T15:11:53","slug":"3811","status":"publish","type":"news","link":"https:\/\/stocksoft.com.pl\/en\/news\/3811\/","title":{"rendered":"Eutelsat&#8217;s shares rise by 650% after the company becomes a potential competitor to Starlink in Ukraine."},"content":{"rendered":"\n<p>Shares of the Franco-British satellite operator <strong>Eutelsat (ETL.PA)<\/strong> rose on Thursday, increasing its gains over the past four days to nearly 650%, driven by a rally that shows signs of active retail trader influence on stocks with high short positions.<\/p>\n\n\n\n<p>The assumption that the company could replace <strong>Starlink<\/strong> from Elon Musk in providing internet access in war-torn Ukraine has helped shift sentiment towards its shares, which had previously been at a record low.<\/p>\n\n\n\n<p>After a sixfold increase in the previous three sessions, <strong>Eutelsat<\/strong> shares rose another 18% on Thursday, boosting the company\u2019s market capitalization to more than \u20ac4 billion ($4.3 billion) before slightly correcting. As of 10:19 GMT, they lost 12% in the fourth consecutive day of high-volume trading.<\/p>\n\n\n\n<p>\u201cThis is a classic short squeeze of unprecedented proportions, but to be fair, it is proportional to the tectonic shifts we are seeing in global geopolitics following Trump\u2019s election,\u201d noted Bernstein analyst <strong>Alexander Peters<\/strong>.<\/p>\n\n\n\n<p>The rally began after a public dispute between Ukrainian President <strong>Volodymyr Zelenskyy<\/strong> and U.S. President <strong>Donald Trump<\/strong> that took place on Friday, after which Washington suspended military aid to Ukraine.<\/p>\n\n\n\n<p>Analysts at <strong>Kepler Cheuvreux<\/strong> suggest that the use of leverage by individual investors may have amplified market volatility, triggering mass short position closures and creating a <strong>\u201cFrench version of the GameStop effect\u201d<\/strong>.<\/p>\n\n\n\n<p>The American video game retailer <strong>GameStop<\/strong> was at the center of the so-called <strong>\u201cmeme-stock rally\u201d<\/strong> in 2021 on Wall Street when the bullish bets of stock influencer <strong>Keith Gill<\/strong> sparked a surge in trading among retail investors.<\/p>\n\n\n\n<p>In France, <strong>Boursorama Retail<\/strong> reported intense discussions about Eutelsat shares, indicating strong interest from retail traders. Similar activity is observed in other parts of Europe.<\/p>\n\n\n\n<p>On the German exchange <strong>Tradegate<\/strong>, popular among retail traders, <strong>Eutelsat<\/strong> became one of the most actively traded assets this week. On Thursday, it took first place, surpassing even defense companies <strong>Rheinmetall (RHMG.DE)<\/strong> and <strong>Hensoldt (HAGG.DE)<\/strong>.<\/p>\n\n\n\n<p><strong>\u201cEutelsat is a stock that retail traders like,\u201d<\/strong> said <strong>Stefan Ecolo<\/strong>, equity strategist at <strong>TFS Derivatives<\/strong> in London. <strong>\u201cHedge funds didn\u2019t account for the risk of a short squeeze, and we\u2019re seeing a real bloodbath.\u201d<\/strong><\/p>\n\n\n\n<p><strong>Eutelsat<\/strong> declined to comment on the dynamics of its shares.<\/p>\n\n\n\n<p>In January, the rating agency <strong>Moody\u2019s<\/strong> downgraded <strong>Eutelsat\u2019s<\/strong> rating to a speculative level, citing weak financial performance of <strong>OneWeb<\/strong> satellites and pressure on cash flows due to significant investment needs.<\/p>\n\n\n\n<p><strong>\u201cThe stock price now reflects expectations that Europe will provide more support to the company, but the fundamental issues that caused its previous fall have not disappeared,\u201d<\/strong> said <strong>Hamish Lowe<\/strong> from <strong>Enders Analysis<\/strong>.<\/p>\n\n\n\n<p><strong>Eutelsat<\/strong> is negotiating with the European Union for the supply of additional satellite internet to Ukraine.<\/p>\n\n\n\n<p>Additionally, <strong>Eutelsat<\/strong> is one of the companies currently negotiating with the Italian government to provide a system for secure satellite communication, according to two Reuters sources familiar with the matter.<\/p>\n","protected":false},"featured_media":3813,"template":"","class_list":["post-3815","news","type-news","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/stocksoft.com.pl\/en\/wp-json\/wp\/v2\/news\/3815","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stocksoft.com.pl\/en\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/stocksoft.com.pl\/en\/wp-json\/wp\/v2\/types\/news"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stocksoft.com.pl\/en\/wp-json\/wp\/v2\/media\/3813"}],"wp:attachment":[{"href":"https:\/\/stocksoft.com.pl\/en\/wp-json\/wp\/v2\/media?parent=3815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}