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Wall Street has spent the first half of 2026 worrying about SpaceX and its Starlink satellite service crashing the wireless party. Shares of T-Mobile are down 10% in 2026 in light of investor concerns about competition from SpaceX (SPCX) and peers.  Yet one of Wall Street’s biggest banks just doubled down on the telecom stock anyway.In a research report shared with me, Morgan Stanley reiterated T-Mobile (TMUS) as its Top Pick in the Telecom and Cable sector on July 7, even as it trimmed its price target. That combination tells investors something important about how seriously to take the satellite threat.The space race has telecom investors nervousStarlink’s rise has rattled the whole sector this year. Cable stocks got hit hardest, with Charter down 36% and Comcast down 16% year to date and AT&T falling 14%. T-Mobile dropped 10%, and Verizon was the lone gainer, up 5%.The threats from SpaceX are real, explains Morgan Stanley:Starlink already offers home internet from space, and investors fear it could soon pose real competition to mobile phone service, too. Morgan Stanley analyst Sean Diffley and his team now expect Starlink to reach about 16 million U.S. broadband subscribers by 2030, up from roughly three million last year.That forecast forced Morgan Stanley to lower its long-term outlook for cable and fiber growth across the industry. Comcast’s price target dropped to $30 from $33. AT&T’s fell to $25 from $30.The T-Mobile stock price target fell to $230 from $260 and rolled forward to reflect a mid-2027 valuation. Even so, that new target still points to solid upside from today’s levels.T-Mobile still wins the growth raceHere is where the picture brightens for T-Mobile.Morgan Stanley expects the company to lead the industry in postpaid phone net additions with 2.5 million in 2026. That beats Comcast’s 1.6 million, AT&T’s 1.3 million, and Verizon’s roughly 1 million.The investment firm also expects T-Mobile’s adjusted profit margin to expand to 48.5% this year (from 47.6% in 2025), and eventually to 51.1% by 2028. No other major carrier is projected to grow that fast.Related: Comcast targets frustrated T-Mobile customers with free offerPart of the reason is pricing, given existing T-Mobile customers pay roughly 10% less on average than customers at rival carriers. New customers, meanwhile, are increasingly choosing pricier premium plans. That mix should keep service revenue growing at a mid- to high-single-digit pace through the rest of the decade, the bank said.T-Mobile also carries less risk from Starlink than its rivals do. The company relies on partnerships and joint ventures for fiber expansion rather than building its own network from scratch. That capital-light approach means less money tied up in infrastructure that satellite competition could make obsolete.

T-Mobile is well-positioned for growth.Bloomberg/Getty Images

Is the Starlink threat a major headwind?Morgan Stanley’s analysts put it plainly in the report. “We believe the perceived risk of Starlink Mobile disrupting the US Wireless industry is greater than the actual risk.”Last month, the Federal Communications Commission wrapped up its AWS 3 spectrum auction, the first major U.S. wireless spectrum sale in four years. Verizon spent nearly $3.2 billion, or nearly 90% of the total funds raised, to shore up its network.SpaceX, in contrast, spent about $8.5 million. It bid on licenses in only six of 200 available markets and won just two, covering the Gulf of Mexico and the Cincinnati area.That is a tiny bet for a company supposedly gunning for the U.S. wireless market. The bank believes SpaceX will lean on partnerships with existing carriers for direct-to-phone service in the U.S., rather than building out its own competing network. More T-Mobile:T-Mobile warns customers that a key service will double in priceT-Mobile adds new internet plan restriction customers will feelT-Mobile’s hiring efforts take an unexpected turn after layoffsBig U.S. carriers, for their part, have shown little appetite for letting a potentially disruptive satellite player onto their networks as a partner.There are also basic physics working in favor of ground-based networks. Satellites orbit at hundreds of kilometers and can only support a limited number of users in any one coverage area at a time. That makes satellite service well-suited to rural and underserved regions, but far less practical in crowded cities, where cell towers pack far more capacity into a small space. Satellites also last around five years before needing replacement, compared with 30 years or more for fiber optic cable. None of this means the satellite story is over. SpaceX plans 35 Starship launches in 2027, and its next-generation satellites will carry more than 10 times the bandwidth of today’s models. That buildout could change the competitive math down the road.For now, though, Morgan Stanley’s message is clear. T-Mobile’s spectrum position, pricing edge, and subscriber growth outpace the risk posed by Starlink anytime soon, keeping it the analyst’s favorite pick in a sector under pressure.Related: T-Mobile stands to benefit as rival files Chapter 11 bankruptcy

TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.Why we love this dealIf you’re an outdoor adventurer like me or just like to bike around town, you might have noticed the uptick in electric bikes. There are many preconceived notions about these non-traditional bicycles surrounding their cost and workout benefits, but I’m here to tell you after getting to try a few out, they’re worth the investment. And right now, REI has a deal on one that’s perfect for new riders.If you’re dipping your toes into the e-bike market but don’t want to dish out over $6,000 for a first-time bike, then the Co-op Cycles DRT e1.1 Electric Mountain Bike is for you. Shoppers can save $1,600 on this bike, paying only $1,599 for a $3,199 eBike. This price also includes a year of free adjustments, 20% off shop services, and free tubes with the purchase of a flat tire repair. Additionally, they’ll even build your bike for you. After working for REI in the bike department for a few years, and getting to try out tons of different bikes — both electric and non-electric — it opened my eyes to the world of electric bikes, which I originally had thought wouldn’t give you a good workout or wouldn’t be worth it. While, when it comes down to it, it depends on how you actually use your bike, both of those concerns turned out to be false. The battery can be turned on or off, allowing you to use the extra help when you need it and saving the battery when you don’t, and you can still get a good workout in, even while using the electric assistance. They allow you to go farther, faster, and higher than ever before, while also still being in control of the amount of assistance you want and when you want it.Co-op Cycles DRT e1.1 Electric Mountain Bike, $1,599 (was $3,199) at REI

Courtesy of REI

Shop at REIWhy do shoppers love it?This bike has tons of features to ride in style. This bike features the Bosch Performance Line smart system, which is a mid-drive motor that can reach assist speeds of up to 20 miles per hour. It can connect your e-bike to the eBike Flow mobile app, which allows you to track ride data, usage, tune modes, and more, while also allowing you to connect to other popular apps, like Strava, to record your rides. Your ride info will also show up on the Bosch Kiox 300 ride display in real time, located in the middle of your handlebars. Related: Walmart has a $650 electric bike for just $350 that goes 65 miles on one chargeThis bike is built for the mountain, with tubeless-ready rims and 27.5-inch tires that minimize flats and a hardtail aluminum frame that can withstand a beating on the trail. It’s equipped with nine speeds, offering a versatile ride for different occasions. The battery can be charged on or off the bike, and it can charge 50% in as little as 1.7 hours or fully charge in approximately 4.5 hours, allowing you to charge it overnight or just a bit during breakfast before you head out. Details to knowSizes: This bike comes in sizes XS through XL, with reviewers saying it fits a bit large. REI offers an interactive size chart that allows you to put your info in to get the best fit. Gears: This bike features nine gears for all types of adventures. Wheel size: They are standard 27.5-inch wheels.One reviewer said, “This is my first e-bike, and it’s fantastic — definitely a 5-star experience. It’s easy to load onto my Lolo rack. The Bosch pedal-assist system is intuitive and user-friendly, with the bonus of syncing to my phone. I also love that I can leave the battery in to charge — super convenient.” Another buyer said, “The quality for the price value that the Co-Op line provides seems solid to me. Another strong selling point is the support REI’s bike shops provide and their vast network available.”Shop more dealsCannondale Habit 3 Mountain Bike, $2,000 (was $2,995) at REIXkjqta 26-Inch Electric Bike, $280 (was $300) at WalmartWhether you’re new to the trail or looking for a better way to get up the mountain, the Co-op Cycles DRT e1.1 Electric Mountain Bike is a great choice. The sturdy frame, Bosch Smart system, and 1.7-hour charge make it great for daily rides or weekend trips. Shoppers can save a whopping $1,600 on this bike right now while supplies last, paying just $1,599 for a fully-equipped electric mountain bike at REI.