ASTS Stock Eyes Worst Week In Over A Month: FCC Chair Says SPCX, AMZN Are Heating Up Satellite-To-Cell Competition

• FCC Chair Brendan Carr said SpaceX, Amazon and other satellite players are intensifying competition in the wireless market.
• Amazon is also in focus as the FCC reviews its Globalstar deal, which Carr said could be “a real unlock” for its LEO network.
• ASTS’ BlueBird rollout remains key, with BlueBird 11 heading to Cape Canaveral and BlueBirds 12 and 13 expected to follow for the first-half August launch.

Shares of AST SpaceMobile (ASTS) are headed for their worst week in over a month as FCC Chairman Brendan Carr said that SpaceX and Amazon are intensifying competition in the satellite-to-cell market.

ASTS stock slipped 1% on Thursday to close at $73.88, down 13% so far this week. 

SpaceX, Amazon Add Heat To Wireless Market 

Carr said recent weakness in wireless carrier stocks shows that telecom 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. He added that the old theory that the market needed a traditional fourth nationwide carrier is being challenged by new competitive pressure, Bloomberg reported.

Carr said SpaceX, Amazon and other satellite players are adding pressure to the wireless market. “That whole theory that you have to sort of artificially create a fourth nationwide is something that we didn’t agree with,” Carr said, citing broader market competition. “I think that’s bearing fruit again: speeds are up, prices dropping.”

Carr pushed EchoStar last year to sell much of its spectrum to SpaceX and AT&T after saying that it was not moving fast enough to build a fourth national wireless carrier. The FCC approved the license transfers in May.

SPCX And AMZN Raise Stakes In Space Race

Carr said he is “bullish” on SpaceX's ability to use its new airwaves to improve satellite-to-cell service. SpaceX already offers direct-to-cell coverage with T-Mobile, and it has reportedly held talks with Charter about launching a wireless phone business. Carr also said that the FCC is “open-minded” about deals that could allow SpaceX to offer wireless services more directly to consumers.

Amazon is another rising competitor. The FCC is reviewing Amazon’s plan to acquire Globalstar as it builds out its LEO network. Carr said approval of the Globalstar deal and related spectrum rights would be “a real unlock” for Amazon, though it still needs to “continue to launch, continue to build.”

ASTS Ramps BlueBird Satellite Rollout

For AST SpaceMobile, the comments validate the satellite-to-cell opportunity but also highlight rising competition. ASTS is building a BlueBird satellite constellation that can deliver 4G and 5G broadband directly to standard smartphones. It has partnerships with AT&T, Verizon, Vodafone, Rakuten, Google, Bell, Telus, STC Group and American Tower.

ASTS recently said BlueBird 11 is on its way from Midland to Cape Canaveral ahead of next month’s launch. BlueBirds 12 and 13 are expected to follow. The company previously said BlueBirds 11, 12 and 13 are targeted for launch in the first half of August. They follow BlueBirds 8, 9 and 10, which launched June 17 and are now in orbit and operational. The next satellites will support voice, data and video service to standard smartphones and deliver nearly double the peak data speeds of ASTS’ initial Block 1 BlueBirds, which recently hit 98.9 Mbps directly to standard smartphones.

How Do Retail Traders Feel About ASTS, SPCX And AMZN?

On Stocktwits, retail sentiment was ‘bearish’ for ASTS, SPCX and AMZN, with message volume ‘low’ for ASTS, ‘extremely low’ for SPCX and ‘normal’ for AMZN. 

One user said, “$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”

Another user said, “$SPCX Probably short term will be down under $100 but in long run after few years if profitable then spike to $200+”

ASTS stock has risen 74% over the past year. 

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