ASTS, RKLB, FLY, LUNR Rise Overnight: Amazon Validates 'Very Large' Demand For Phone-To-Space Connectivity

• In late Wednesday’s overnight session, ASTS and FLY rose about 2% each, while RKLB and LUNR gained 1%. 
• AT&T CEO John Stankey said the U.S. satellite-to-phone market is likely to support multiple LEO constellation providers rather than a single dominant operator.
• Stankey also said SpaceX and Amazon are expected to develop competing space connectivity capabilities over time.

Shares of AST SpaceMobile (ASTS), Rocket Lab USA (RKLB), Firefly Aerospace (FLY) and Intuitive Machines (LUNR) climbed overnight late Wednesday after Amazon flagged “very large” demand for phones connecting directly to satellites, boosting confidence in the emerging space-based cellular connectivity market.

In late Wednesday’s overnight session, ASTS and FLY rose about 2% each, while RKLB and LUNR gained 1%. 

Amazon Sees ‘Very Large’ Demand For Satellite Phone Coverage

The comments came from CEO Andy Jassy during the company’s first-quarter earnings call, where he highlighted rising expectations from consumers, enterprises and governments for uninterrupted global connectivity beyond traditional networks.

“Even in metropolitan areas, we all hit certain parts of the highway or certain roads where you can't get connectivity or you're hiking, you're skiing. And so increasingly, we see very large demand for consumers to have direct-to-device,” Jassy said. 

Amazon said the heavy demand for uninterrupted space connectivity pushed its strategy to expand direct-to-device capabilities by acquiring Globalstar, while also boosting its satellite partnership with Apple. 

“And then it also afforded us the opportunity to build a deep relationship with Apple, who's going to use our direct-to-device for their iPhones and for their watches. So very optimistic about the business,” Jassy added.

AT&T Sees Multi-Player Satellite Phone Market

This is not the first sign of increased demand for direct-to-device providers in recent times. AT&T also recently said that the satellite-to-phone connectivity market is likely to support multiple providers rather than a single dominant constellation operator.

CEO John Stankey said the telecom group expects several low-Earth-orbit (LEO) satellite constellations to ultimately serve the U.S. direct-to-device connectivity market. While reaffirming AT&T’s partnership with AST SpaceMobile, he also said competing platforms from SpaceX and Amazon are expected to develop comparable capabilities over time.

Satellite Phone Demand Boosts Space Stocks

Investor interest has been building across companies in the space ecosystem, including the ones building launch capacity, spacecraft platforms and constellation infrastructure required for direct-to-device networks.

AST SpaceMobile remains one of the most direct beneficiaries as it develops satellites to connect standard smartphones using carrier spectrum. The company recently secured authorization from the Federal Communications Commission (FCC) to deploy 223 additional satellites to support its coverage-from-space network across spectrum leased from AT&T and Verizon Communications, cementing its position within the emerging hybrid terrestrial-satellite coverage model.

On the other hand, Rocket Lab is a key supplier to constellation operators through its launch services and satellite subsystems supporting large-scale deployment cycles across LEO networks. Firefly Aerospace continues to expand its role in orbital communications infrastructure following progress on its Alpha launch program and the development of its Elytra orbital vehicle, which supports long-duration communications relay missions.

Meanwhile, Intuitive Machines is building spacecraft and satellite communications systems for space networks around Earth and the Moon, including work on a U.S. missile-tracking satellite program and a $180.4 million NASA contract to deliver payloads to the lunar surface as part of efforts to expand connectivity beyond Earth’s orbit. 

How Do Retail Traders Feel About ASTS, RKLB, FLY, LUNR?

On Stocktwits, retail sentiment for ASTS, FLY and LUNR was ‘bearish’, with message volume tagged as ‘normal’ for ASTS and ‘low’ for both FLY and LUNR. In contrast, sentiment around RKLB was ‘bullish’ amid ‘normal’ message volume. 

Over the past year, RKLB has surged 244%, while ASTS and LUNR have also rallied sharply, rising 192% and 188%, respectively. In contrast, FLY has declined 45% over the same period. 

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