SpaceX shares rose more than 4% in premarket trading Friday after the aerospace and AI company announced two developments. Led by Elon Musk, SpaceX agreed to buy Grain Management’s nationwide 800 MHz low-band wireless spectrum assets in a deal valued at approximately $8 billion.
The acquisition could help SpaceX expand its services and compete more directly in telecommunications. T-Mobile, AT&T and Verizon shares declined after the news.
Barclays initiated coverage of SpaceX with a Buy rating and a $254 price target. Analyst Anthony Valentini’s outlook added to investor confidence in the company’s growth prospects following its public debut in June.