Despite a bearish backdrop for the broader market, Cambium Networks (CMBM +27.12%) stock is soaring Thursday. The company's share price was up 38.3% as of 1:30 p.m. ET. Meanwhile, the S&P 500 (SNPINDEX: ^GSPC) was down 0.5%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) was down 1.1%. The stock had been up as much as 130.5% earlier in the session.
Cambium's valuation is soaring today following news that its network technologies will be integrated with SpaceX's Starlink service. The stock is now up 534% year to date as of this writing.
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Cambium stock surges on big Starlink news
After the market closed yesterday, Cambium announced that its ONE Network solution would be integrated with Starlink's satellite internet services. The SpaceX partnership will see Cambium's Network Service Edge (NSE) security/SD-WAN platform and the cnMaestro cloud management system made available through Starlink's low-Earth-orbit (LEO) satellite service, and is aimed at improving performance visibility, optimization, and scalability.
NASDAQ: CMBM
Key Data Points
What's next for Cambium?
The integration with Starlink looks to be a big win for Cambium. Starlink is the leading provider of satellite internet services and has more satellites in operation for the category than any other provider. The company also has financial and technological resources that give it significant edges over its competitors, and it has a promising growth outlook in conjunction with space-commercialization trends.
On the other hand, it remains to be seen just how much of a sales catalyst the new partnership will wind up being for Cambium. Investors are trying to assess the outlook on that front, which likely explains why the stock has pulled back significantly from the high it hit today. For better or worse, shares will likely continue to see high levels of volatility in the near term.
