ViaSat Inc. (VSAT) shares are taking a hit on Wednesday, failing to keep pace with the broader market’s rally. This muted price action is likely a result of a new short report released by The Bear Cave, a firm known for its critical analysis of publicly traded companies.
The Bear Cave’s report paints a bleak picture for ViaSat, alleging that Elon Musk’s SpaceX is rapidly eating into its market share with its Starlink satellite internet service. The report claims that Starlink’s superior bandwidth and lower latency, combined with a growing base of satisfied customers, are leaving ViaSat in the dust.
Adding fuel to the fire, The Bear Cave predicts that Donald Trump’s potential return to the White House could further intensify the competitive pressure from SpaceX. This is based on the assumption that Musk’s support for Trump during his campaign might translate into favorable policies for SpaceX’s satellite internet ambitions.
The report highlights specific customer reviews showcasing a shift towards Starlink. It also points out ViaSat’s shrinking subscriber base, which has fallen from around 600,000 in 2020 to just 257,000. The Bear Cave expects this decline to continue based on the ongoing customer sentiment towards Starlink.
As a result of these concerns, ViaSat shares were down 1.05% at $10.39 at the time of publication. The company is scheduled to release its earnings report after the market closes on Wednesday, an event that could provide further insights into the company’s current performance and its strategy to compete with SpaceX’s Starlink.
It remains to be seen how ViaSat will respond to these challenges. The company has yet to comment on the report. However, the current market reaction suggests investors are taking the short seller’s claims seriously. The coming days and weeks will be crucial in determining the impact of this report on ViaSat’s future.
