SpaceX’s sharp share price reaction, despite 92% revenue growth and heavy AI capex, has put fresh attention on how telecom stocks might cope if Starlink pushes harder into terrestrial networks. That mix of excitement and concern can create mispricing, which often matters more than headlines. This article walks through three telecom stocks exposed to the same news and explains why some investors are watching them closely right now.

The stocks covered in the article below are just a starting sample, and the same screen surfaced 6 more telecom companies with equally compelling narratives that are not discussed here. If you want to go deeper on this theme, head straight to the Telecommunications Sector screener to identify, filter and analyze the highest conviction ideas in the sector.

Vodafone Group (LSE:VOD)

Vodafone Group is a large telecom services provider across Europe, Turkey and Africa, offering mobile, broadband, IoT connectivity, cloud and edge computing, and its M PESA mobile money platform. Revenue is spread across major markets, with about €12.1b from Germany, €9.2b from the United Kingdom, €8.4b from Africa, €5.7b from other European operations and €3.4b from Turkey, plus smaller common functions and eliminations. The group has a market cap of roughly £26.3b, which puts it firmly in large cap territory.

Investors watching how Starlink might expand into terrestrial networks may see Vodafone Group as a useful yardstick. The company combines a large European footprint, growing digital and B2B services, and meaningful exposure to Africa through M PESA. It is still working through execution issues in Germany and the financial impact of restructuring. The stock trades on a low P/S multiple and below an estimated DCF value, while earnings are forecast to rise and profitability is expected to improve over the next few years. The catch is high debt, current losses and a dividend that is not covered by earnings. This is exactly where the real story for Vodafone starts to get interesting.

Vodafone’s low P/S ratio and current losses make the story look stalled. However, the real gap may sit in its balance sheet and cash flow. Get the full picture with the Vodafone Group financial health report

Build your own telecom value shortlist

Vodafone Group and the two other telecom stocks in this article all surfaced from a single Simply Wall St screen. The real edge comes from setting your own rules. Use our flexible Screener to mix valuation, balance sheet and risk filters that fit your style, or tap into our curated Investing Ideas for ready made shortlists.

AST SpaceMobile (ASTS)

AST SpaceMobile is building a space based cellular broadband network that aims to connect ordinary smartphones directly to satellites, so users can get service well beyond current tower coverage. For now, its US$84.9 million in revenue comes entirely from wireless communications equipment in the United States, and the company sits in large cap territory with a market value of about US$27.3b.

AST SpaceMobile sits in the middle of the current debate around satellite and terrestrial telecom, especially with Starlink in the headlines. The potential prize is significant if its direct to device network, carrier partnerships with groups like AT&T, Verizon and Vodafone, and recent BlueBird 11 to 13 launches translate into service revenue. At the same time, it is a company that is still loss making, highly reliant on external funding and seeing meaningful insider selling. For investors seeking exposure to a high risk space telecom story, AST SpaceMobile represents one option, while the execution and funding questions remain important considerations.

AST SpaceMobile’s tower free vision, carrier alliances and recent satellite launches suggest a story that is just getting started. Get the full 2 key rewards and 2 important warning signs (1 is major!) to see what could change the script next.

Liberty Latin America (LILA)

Liberty Latin America runs a broad telecom platform across the Caribbean and Latin America, offering broadband, mobile, TV and subsea connectivity to households, businesses and governments. The biggest chunk of its roughly US$4.4b in segment revenue comes from Liberty Caribbean at about US$1.4b, followed by Liberty Puerto Rico at about US$1.2b, with meaningful contributions from C&W Panama, Liberty Costa Rica and Liberty Networks. The company sits in mid cap territory with a market value of about US$1.7b.

Investors looking at how Starlink reshapes connectivity may find Liberty Latin America interesting because it already runs fixed, mobile and subsea networks across 30 regional markets and has been working directly with Starlink on services that keep customers connected when its own cell sites are down. The stock trades at a low P/S multiple compared with peers, analysts see materially higher earnings over the next few years, and recent results show losses narrowing, buybacks and a new preferred share dividend structure. The flip side is heavy group debt, volatile earnings and execution risk around projects like Puerto Rico’s separation that could limit how much value ultimately flows to shareholders.

Liberty Latin America’s low P/S multiple, buybacks and new preferred dividend structure hint at a story the market may be mispricing. See how the balance between debt, earnings volatility and upside really stacks up in the 3 key rewards and 1 important warning sign

Seeking Alternatives Before The Crowd Moves

Fresh breakouts and under the radar stocks rarely stay quiet for long. Momentum builds, prices move, and latecomers get caught chasing. Scan these ideas while it matters and consider them while they may still be timely.

• Identify potential turnaround stories with strong balance sheets before they gain wider attention by scanning the list of solid balance sheet and fundamentals (21 results) for ideas that may still be overlooked.
• Explore structural trends in automation and AI robotics by checking the curated 35 robotics and automation stocks that highlights companies involved in long term demand shifts.
• Review opportunities related to a potential power grid build out by using the hand picked 36 power grid technology and infrastructure stocks that focuses on infrastructure stocks connected to capacity needs.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.