French satellite company Eutelsat has been experiencing a meteoric rise that mirrors the chaos of the GameStop short squeezes of 2021 and 2024. This unexpected surge in stock price has caught the attention of both investors and traders, sparking comparisons to the infamous meme stock phenomena.

Just a month ago, Eutelsat’s market cap hovered well under $1 billion.

Fast forward to last week, and the company had seen its valuation soar past $4 billion, with the potential to climb even higher after another significant jump today. For anyone keeping score, that’s a staggering increase of more than 500% in just a matter of weeks.

But what makes a stock a true meme stock? Beyond the price action, it’s the story behind the rise that drives investor passion. In the case of GameStop, it was about giving retail traders a chance to breathe new life into a company steeped in nostalgia. With Eutelsat, the narrative is very different, but equally compelling. The satellite company is becoming a symbol of resistance not only against hedge funds that bet against its stock but also against the powerhouse of Elon Musk’s Starlink, and the political tensions surrounding it.

Eutelsat has been floated as a potential alternative to Starlink in the ongoing war in Ukraine, particularly for maintaining vital military communications. Amid fears that SpaceX’s Starlink might become an unreliable provider—sparked by comments from Poland’s foreign minister—Eutelsat’s role as a backup provider has grown in prominence. Meanwhile, Elon Musk, never one to shy away from a spat, publicly dismissed concerns about Starlink’s reliability, calling out critics on social media with a biting response.

This intriguing narrative has sparked more than just financial interest. Eutelsat is gaining traction on Reddit’s r/wallstreetbets, where retail traders often rally behind underdog stocks with big potential. The momentum is real, and the stakes feel higher than ever.

In true meme stock fashion, the French proverb "Plus ça change, plus c’est la même chose" (“The more things change, the more they stay the same”) seems fitting for this story. While the names and technologies may evolve, the fervor and unpredictability of the market remain as intense as ever. Eutelsat’s meteoric rise is the latest chapter in the ever-evolving saga of stocks that stir passions and defy expectations.

The semiconductor sector is facing another challenging day, marked by sharp declines both in absolute terms and in comparison to the broader market.

The VanEck Semiconductor ETF (SMH) is down nearly 4%, a significant drop that exceeds the S&P 500’s performance by almost double. Once a market leader, the semiconductor industry has quickly shifted into the role of a laggard, as its rapid rise, particularly driven by the AI boom, appears to have faltered. The demand for chips outside of this high-growth segment has struggled to gain traction, compounding the sector's woes.

Leading companies in the space are not immune to these struggles. Broadcom (AVGO) is down more than 5%, wiping out much of its post-earnings gains. Meanwhile, Marvell Technology and Microchip Technology are enduring even worse performances. Nvidia, often seen as a kingpin of the semiconductor world, has also taken a hit, with its stock declining over 4% on the day.

As a result, the chip-centric fund has now underperformed the S&P 500 by more than 15% over the past year. This marks a notable shift, as it’s relatively rare for semiconductors to lag so far behind the benchmark index over a 12-month period. While this could indicate that the sector is nearing a relative bottom, it’s important to consider that the exceptional outperformance seen from a select few chip stocks in recent years has been unusual in its own right.

Looking at the broader picture, only five of the 25 components in the VanEck Semiconductor ETF have managed to post positive returns over the last 252 trading sessions. These include industry giants like Broadcom, Nvidia, TSMC, Analog Devices, and Texas Instruments. On the flip side, stocks like Intel and AMD have experienced a drastic decline, with both companies losing more than half of their value during this period, further underscoring the volatility and challenges facing the sector.

S&P 500 Experiences Largest Drop of 2025

The S&P 500 saw a dramatic drop shortly after midday, plunging by more than 2%, marking its most significant decline of the year. This sudden downturn, which is the largest since mid-December, signals increasing volatility in the markets, leaving investors on edge. As spring settles in, it's clear that the environment is proving to be especially favorable for short sellers, who are capitalizing on the market's uncertainty.

A key factor behind this steep drop is the growing concern over the broader health of the US economy, which has been weighing heavily on investor sentiment. However, when examining the specifics of the day's market movements, it becomes apparent that the sharp fall is closely tied to a decline in large-cap technology stocks. Notable companies like Apple, Nvidia, and Tesla, whose massive market capitalizations have held significant influence over the S&P 500, have seen substantial losses.

Apple, in particular, was a major contributor to the sell-off, with shares dropping by 2.18% to $212.25. The tech giant's struggles appear to stem from a delay in the much-anticipated AI-enabled upgrade to its Siri virtual assistant. This news has weighed heavily on investor sentiment, as Apple had been a relatively stable force within Big Tech until recently. Alongside Apple, other tech giants such as Nvidia and Tesla also experienced notable losses, exacerbating the overall downturn.

This sharp retreat in large-cap tech stocks underscores the increasing vulnerability of the market's most influential players. As these stocks have long driven market performance, their struggles now highlight broader economic concerns that could continue to shape investor outlooks in the coming months.

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