Shares of AST SpaceMobile (ASTS) are on track for their worst weekly performance in over a month amid intensifying competition in the satellite-to-cell market.
ASTS stock slipped 1% on Thursday to close at $73.88, leaving it down 13% for the week and drawing fresh scrutiny from investors watching the broader satellite sector.
FCC Chairman Brendan Carr said SpaceX and Amazon are adding significant competitive pressure to the wireless market, rattling traditional telecom players in the process.
Carr pointed to weakness in wireless carrier stocks as evidence that competition is heating up, driven by spectrum sales, satellite offerings and EchoStar’s fading wireless-network ambitions.
“The stock prices of the mobile wireless guys are getting hammered,” Carr said, suggesting the old model of needing a traditional fourth nationwide carrier is being challenged.
“That whole theory that you have to sort of artificially create a fourth nationwide is something that we didn’t agree with,” Carr said, adding that “speeds are up, prices dropping.”
Carr said he is “bullish” on SpaceX’s ability to use its new airwaves to improve satellite-to-cell service, and noted the FCC is “open-minded” about deals that could allow more direct consumer wireless offerings.
SpaceX already offers direct-to-cell coverage with T-Mobile and has reportedly held talks with Charter about launching a wireless phone business, raising the competitive stakes further.
Amazon is also emerging as a serious player, with the FCC currently reviewing its plan to acquire Globalstar as the company builds out its low-Earth orbit network.
Carr said approval of the Globalstar deal and related spectrum rights would be “a real unlock” for Amazon, though he noted it still needs to “continue to launch, continue to build.”
For AST SpaceMobile, Carr’s comments validate the satellite-to-cell opportunity while simultaneously underscoring the growing competitive threats the company faces from well-capitalized rivals.
ASTS is building its BlueBird satellite constellation designed to deliver 4G and 5G broadband directly to standard smartphones, with partnerships spanning AT&T, Verizon, Vodafone, Rakuten, Google, Bell, Telus, STC Group and American Tower.
BlueBird 11 is currently en route from Midland to Cape Canaveral ahead of a planned launch, with BlueBirds 12 and 13 expected to follow for a first-half August liftoff.
BlueBirds 11, 12 and 13 follow BlueBirds 8, 9 and 10, which launched June 17 and are now in orbit and fully operational, supporting voice, data and video to standard smartphones.
The new satellites are expected to deliver nearly double the peak data speeds of ASTS’ initial Block 1 BlueBirds, which recently hit 98.9 Mbps directly to standard smartphones.
On Stocktwits, retail sentiment was “bearish” for ASTS, with message volume tracked as “low,” reflecting caution despite the stock’s 74% gain over the past year.
One user posted, “$ASTS this is one of the craziest stocks we have ever held because it’s so undervalued it’s unbelievable but that’s fine we will continue to buy every single day while it is below $100.”
Sentiment for SPCX was also “bearish” with volume “extremely low,” while AMZN saw “bearish” sentiment with “normal” message volume on the platform.
One Stocktwits user commented on SPCX, writing “$SPCX Probably short term will be down under $100 but in long run after few years if profitable then spike to $200+.”
