SpaceX’s spectrum purchase could open new revenue opportunities for tower operators.

  • SpaceX is targeting 80,000 U.S. cell sites for a nationwide wireless network.
  • The Elon Musk company’s move could generate multibillion-dollar leasing deals for Crown Castle and American Tower.  
  • Crown Castle operates about 40,000 U.S. tower sites, while American Tower has 41,764 across the U.S. and Canada. 

Crown Castle (CCI) and American Tower (AMT) rallied overnight as reports of Elon Musk’s SpaceX (SPCX) discussions with tower operators fueled hopes of a new growth driver for the industry. SpaceX wants access to at least 80,000 U.S. sites for its wireless network, raising hopes for leasing deals even as traditional carriers curb spending. 

Crown Castle stock gained more than 6.5% overnight, ahead of Friday. American Tower stock traded over 3% higher.

SpaceX's Fourth Carrier Ambitions Put Crown Castle, American Tower  In Focus

SpaceX is reportedly pursuing a nationwide wireless network that could require leases at tens of thousands of cell towers, raising the prospect of multibillion-dollar agreements for infrastructure owners like Crown Castle and American Tower.

The rocket and satellite company wants access to at least 80,000 locations across the U.S. and has started discussions with major tower operators. Crown Castle is among the companies involved, alongside American Tower.

During Crown Castle's Wednesday earnings call, CEO Chris Hillabrant addressed questions about potential arrangements with SpaceX, Amazon.com Inc. (AMZN) and other satellite communications businesses. “I don't think I want to get into a customer-specific detail, but you can assume that we're talking to all parties,” Hillabrant said.

While the infrastructure provider gained, Shares of AT&T Inc. (T), Verizon Communications Inc. (VZ) and T-Mobile US Inc. (TMUS) each lost between 2% and 3% overnight as investors assessed the threat of a new competitor with deep pockets.

SpaceX CEO Elon Musk is working to launch a mobile service that combines satellites with ground-based networks. The company recently bought low-band 800 MHz worth $8 billion, which helps signals travel farther and reach inside buildings more easily. 

Why Tower Operators Like Crown Castle And American Tower Still Matter

More often, wireless operators rent space on existing towers rather than build and maintain their own structures, as shared facilities can cut costs while providing supporting systems to transmit mobile signals.

Crown Castle operates about 40,000 U.S. tower sites, while American Tower operates 41,764, giving it concentrated exposure to domestic wireless investment. AT&T, Verizon, and T-Mobile accounted for roughly 90% of Crown Castle’s site rental revenue in 2025, while they made up 85% of American Tower’s U.S. and Canada revenue. Hence, a new large-scale tenant could therefore provide a growth opportunity, although the companies’ reliance on major carriers also increases their exposure to changes in their leasing decisions.

Wall Street's Outlook, Valuation On Crown Castle And American Tower

According to Koyfin data, analyst estimates put Crown Castle's average price target at $93.50,  implying a 19% upside from the stock’s last close. Meanwhile, American Tower's consensus price target stands at $215.74, implying the same 19% upside. Among 22 analysts covering CCI, 21 rate the stock ‘Buy’ or ‘Hold’, while all 25 analysts covering AMT rate it either a ‘Buy’ or ‘Hold’ 

Both Crown Castle and American Tower trade at a similar lower forward price-to-earnings (P/E) multiple of approximately 27.4 times and 27.1 times, respectively. American Tower has greater geographic diversification, while Crown Castle could be more directly affected if SpaceX pursues a large domestic site-leasing agreement. 

Morningstar analyst Michael Hodel said on Thursday that Crown Castle improved per-share cash flow in the third quarter despite declining revenue and sluggish demand from wireless carriers. He maintained a $113 fair value estimate and a narrow economic moat rating. Crown Castle's Q3 revenue dropped 7.2% year-on-year as rental income weakened and its services business continued to struggle. 

Hodel expects new leasing activity in 2026 to reach the bottom of Crown Castle's projected range. Verizon has reduced planned network investment, AT&T recently obtained additional low-band spectrum, and T-Mobile is concentrating on improving network efficiency. However, the analyst suggested SpaceX could eventually become another customer as it develops its wireless network following its spectrum acquisition.

Still, Hodel said he favors internationally diversified peers such as American Tower and SBA Communications Corp. (SBAC) for their broader growth opportunities. American Tower is expected to report its Q3 earnings on Oct.27. Analysts see $2.7 billion in revenue, according to Fiscal.ai. 

Earlier this month, Bernstein lowered its price target for American Tower to $212 from $214 while maintaining an ‘Outperform’ rating. The firm remains positive on demand for tower services but said higher borrowing costs could slow growth in adjusted funds from operations (AFFO) per share over the next few years. However, the firm said SpaceX could become a new nationwide tower customer, offering growth opportunity. 

CCI, AMT Stocks: Retail View 

On Stocktwits, retail sentiment around CCI remained ‘neutral’, while sentiment around AMT changed to ‘neutral’ from ‘bearish’.

So far this year, CCI stock has declined 11%, while AMT has gained over 3%. 

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