Satellite stocks were in vogue in late trading on Thursday, thanks to a rapidly escalating spat between two of the most high-profile individuals in the world. A beneficiary of this was Viasat (VSAT 2.59%), which ended up booking a 2.6% gain in its share price on the day. That made it an outperformer in light of the S&P 500 index’s 0.5% decline.
Funding threat
Earlier in the day, a social media war of words erupted between President Trump and former Department of Government Efficiency (DOGE) head Elon Musk. That occurred just after Musk, on his X (formerly Twitter) platform, leveled criticisms against Trump’s One Big, Beautiful Bill currently making rather jagged progress through the Senate.
Image source: Getty Images.
In one of several responses on Trump’s favored social media platform, Truth Social, the president made what can easily be taken as a direct and unambiguous threat to Musk’s various businesses. He wrote that “The easiest way to save money in our budget, billions and billions of dollars, is to terminate Elon’s governmental subsidies and contracts.”
Among Musk’s businesses, which of course include Tesla, are SpaceX and Starlink. The latter company counts federal government agencies such as the Departments of Defense and Commerce as its clients. If such revenue sources were indeed to be cut off suddenly, the move would have quite a detrimental effect on Space X.
Its loss would surely be rivals’ gain; hence the interest in Viasat. The company provides satellite services that rival those of Starlink.
A potentially high-stakes dispute
Of course, so far there have been tough words but no action in regards to shutting off the federal taps that flow to Musk’s business. Personally, I wouldn’t trade Viasat or any potential beneficiary on rhetoric alone right now, but this is a rapidly developing story that’s worth monitoring for anyone invested in satellite or space stocks presently.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.