Cambium Networks (CMBM) stock rocketed higher on Wednesday after the wireless broadband networking infrastructure solutions company announced its integration with SpaceX’s (PC:SPXEX) Starlink. With this integration comes enhanced security, traffic intelligence, and multi-WAN scalability for customers that utilize Starlink’s Low Earth Orbit (LEO) satellite connections.
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Cambium Networks noted that its integration with Starlink will offer additional benefits for businesses and education. This is especially true for those that are based in remote areas, which have started to experience increased internet access thanks to LEO satellites.
Cambium Networks highlighted the ability to use its service to combine multiple types of internet. That includes multiple Starlink connections, which can be combined via the company’s wireless and wired infrastructure. This can help customers better manage their bandwidth and handle failover.
Cambium Networks Stock Movement Today
Cambium Networks stock was up 268.93% in pre-market trading on Wednesday, following a slight dip yesterday. The stock was down 3.44% year-to-date and 51.72% over the past 12 months.
Today’s Starlink news increased investor interest in Cambium Networks, which boosted trading volume of CMBM stock. This resulted in more than 115 million shares traded, compared to a three-month daily average of about 253,000 units.
For investors who aren’t aware, Starlink parent company SpaceX is owned by Elon Musk, the founder of Tesla (TSLA) and owner of X, formerly Twitter. Connections to Musk can attract certain traders who are fans of his companies. This helps explain why CMBM stock is up today.
Is Cambium Networks Stock a Buy, Sell, or Hold?
Turning to Wall Street, analyst coverage of Cambium Networks is lacking. Fortunately, TipRanks’ AI analyst Spark has it covered. Spark rates CMBM stock a Neutral (41) with no price target. It cites “significant financial challenges, with declining revenues, negative profitability, and increased leverage posing risks to financial health” as reasons for this stance.
