Lee Sees AI Selloff Ending as Yields Drop Below 5%
Fundstrat's Tom Lee says the AI selloff is nearly over, citing yields under 5% and a crowded short trade in tech, with Nvidia and crypto among his preferred…
After quarterly results, United and SpaceX each gained over 6%, as Starlink drew airline customers and generated billions in revenue.
Would better in-flight internet change your choice of airline? United Airlines says passengers are already doing just that. The carrier says Starlink is pulling customers away from rival airlines, while SpaceX is earning billions from satellite connectivity.
Once third-quarter earnings were out, both shares climbed more than 6%. What the reports made clear is that a single satellite-internet offering is turning into a meaningful financial factor for two very different companies.
“We are winning new long-term, brand-loyal United customers because they are trying us for Starlink” — United CEO Scott Kirby said in Tuesday’s earnings release.
United Airlines ($UAL) — Q3’26 earnings highlights:
Revenue: $17.88B (Est. $17.89B), +17.4% YoY
Adjusted EPS: $2.54 (Est. $2.59), -8.6% YoY
Adjusted pre-tax income: $1.11B (Est. $1.11B)
Adjusted operating income: $1.23B (Est. $1.26B)
Adjusted net income: $833M (Est. $867M)
Starlink is now on more than 640 United aircraft, with roughly three more planes being equipped each day. About half of United’s flights offer the service at no charge to MileagePlus members. More than 5.4 million passengers used the service in September.
Customer-service scores on planes fitted with Starlink run almost twice as high as scores on aircraft with other Wi-Fi systems, the airline says.
In 2027, Kirby expects Starlink to boost revenue per available seat mile. United expects 87% coverage by June and availability across the entire fleet by year-end.
On Wednesday’s earnings call, however, Kirby conceded that evidence of passengers switching airlines is still anecdotal for the most part. United has not quantified the additional revenue that Starlink brings in.
SpaceX offers a clearer view of the financial impact.
Starlink sits inside SpaceX’s connectivity unit, which generated $5.25 billion in Q3 revenue, up 69% year over year. Operating profit came in at $2.37 billion, almost double the prior-year level.
According to its SEC earnings release, SpaceX reported total revenue of $14.6 billion and net income of $4.4 billion.
The AI arm brought in even more revenue — $7.56 billion — yet connectivity remained its largest source of operating profit.
There is a significant connection for investors between the two reports. In United’s view, satellite internet can win over customers from rival carriers. SpaceX is already booking substantial profits from a connectivity business that keeps growing and serves airlines and other customers.
United’s stock also moved higher after the airline posted record quarterly revenue of $17.9 billion and passenger demand proved resilient, even with higher fuel costs and a disappointing profit outlook.
SpaceX’s gains were accompanied by better-than-expected earnings, sharply higher AI sales, and Musk’s disclosure of possible merger discussions with Tesla.
Starlink by itself is not enough to account for either rally. The latest earnings, however, suggest satellite connectivity is turning into an important commercial advantage for United and a major profit engine for SpaceX.
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Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
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