ASTS Stock Declines Sharply On Amazon-Globalstar Deal Concerns: Retail Says It Is ‘Oversold’

• Amazon on Tuesday announced that it will acquire Globalstar in a deal that will provide it access to the latter's satellite network, spectrum, and infrastructure.
• Amazon also announced a partnership with Apple to support satellite features on iPhone and Apple Watch, including Emergency SOS.
• Meanwhile, AST SpaceMobile’s BlueBird 7 satellite is set for an April 16 launch aboard Blue Origin’s New Glenn rocket.

Shares of AST SpaceMobile Inc. (ASTS) declined more than 9% on Tuesday amid growing concerns that Amazon.com’s (AMZN) latest move to acquire satellite company Globalstar Inc. (GSAT) could impact the direct-to-device market.

Earlier in the day, William Blair said the deal would position Amazon to "become a third major player" in the direct-to-device (D2D) market, currently led by SpaceX and AST SpaceMobile, according to TheFly.

However, retail traders on Stocktwits dismissed concerns, with many users encouraging the market to ‘buy the dip.’

Amazon’s Globalstar Acquisition

Amazon on Tuesday announced that it will acquire Globalstar in a deal that will provide it access to the latter's satellite network, spectrum, and infrastructure, strengthening Amazon’s expanding low Earth orbit (LEO) ambitions and enabling D2D satellite connectivity.

The acquisition will give Amazon access to Globalstar’s satellite network, spectrum licenses, and infrastructure, allowing it to extend cellular coverage beyond traditional networks and deliver voice, messaging, and data services directly to smartphones without specialized hardware.

Amazon also announced a partnership with Apple (AAPL) to support satellite features on iPhone and Apple Watch, including Emergency SOS. The company expects to launch enhanced D2D services by 2028.

Bluebird 7 Launch

Meanwhile, AST SpaceMobile’s BlueBird 7 satellite is set for an April 16 launch aboard Blue Origin’s New Glenn rocket. The 6,100-kg satellite will deliver up to 10 times more bandwidth, support nationwide coverage, and mark the first booster reuse in the New Glenn program.

What’s Retail Saying?

On Stocktwits, retail sentiment around ASTS stock improved from ‘bullish’ to ‘extremely bullish’ territory over the past 24 hours amid ‘high’ message volumes.

One bullish user called the dip an easy buying opportunity.

Another user said they were betting on this dip.

A third user called the stock ‘oversold’ and added that the share price would push back into the $90s range by the end of the day.

ASTS stock has rallied by over 292% in the past year.

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