Eutelsat's Record Week Unravels: EU Spectrum Push and LEO Surge Fail to Halt Friday's 11.7% Plunge

The European Commission's proposal to reserve a third of the 2 GHz satellite spectrum for EU operators was supposed to be a strategic boon for the region's space industry. For Eutelsat, already riding a wave of new contracts and surging low-earth orbit revenue, it looked like another tailwind. Instead, investors used the news as an exit ramp. The Paris-listed satellite operator saw its shares crash nearly 12% on Friday, erasing a chunk of the week's stellar gains.

The sell-off was brutal and massive. Eutelsat closed at €3.95, down 11.71% on the day. Volume hit 10.9 million shares, more than double the 20-day average — a record for recent sessions. The drop came just 24 hours after the stock touched a fresh 52-week high of €4.47 and two days after it had reached as high as €4.51. Despite the Friday bloodbath, the week still ended in the green with a gain of 5.64%.

Technical indicators flashed conflicting signals. The relative strength index (RSI) plunged deep into oversold territory, with one reading at 14.2 and another at 21.2, depending on the calculation timeframe. The stock remains far above its key moving averages — the 50-day average stands at €2.76 and the 100-day at €2.48, representing premiums of 43% and 59% respectively — suggesting the medium-term uptrend is intact. Support sits at Friday's low of €3.71, while resistance remains the high of €4.47.

Should investors sell immediately? Or is it worth buying Eutelsat?

The EU spectrum proposal, unveiled on May 27, is the latest catalyst. It calls for a reallocation of the 2 GHz band — current licenses expire in 2027 — with one-third of commercial capacity reserved exclusively for European operators. Government and security services would also be ringfenced for EU-based providers. The remaining third would be open to non-EU players like Starlink and Amazon Kuiper. The plan is still a political framework, not a binding regulation; it must pass through EU member states and the European Parliament, with a legal act unlikely before 2027. But the direction of travel is unmistakable.

Operationally, Eutelsat's numbers paint a more complex picture. Third-quarter revenue came in at €293 million, down 2.3% on a reported basis but up 3.1% on a comparable basis. The LEO connectivity business, driven by the OneWeb merger, surged 65% year-on-year. Video revenue continued its structural decline, falling 13.3%. A multi-year contract with in-flight connectivity provider Anuvu, announced on May 26, will use the EUTELSAT 10B satellite as part of the company's multi-orbit strategy combining GEO and LEO assets. Eutelsat operates 31 geostationary satellites and a constellation of more than 600 LEO satellites.

On the balance sheet, the group completed a €1.5 billion bond placement in March as part of a major refinancing effort. Full-year results are due on August 7, which will provide the clearest test of whether the growth trajectory is translating into operating profits.

Friday's rout appears less a fundamental deterioration than a classic profit-taking episode following a 120.73% year-to-date rally. The question now is whether the EU's spectrum pivot and the ongoing LEO momentum can outweigh the near-term selling pressure. The next concrete milestones in Brussels — rather than broad sovereignty debates — will likely determine whether the stock can reclaim its recent highs or needs a deeper reset.

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