ASTS Stock Slides Premarket: AT&T Says SpaceX And Amazon Could Rival AST SpaceMobile In Satellite Race

• AT&T said it expects multiple LEO satellite constellations to serve the U.S. direct-to-device connectivity market rather than a single dominant provider.
• Investor sentiment has remained cautious following the failure of the BlueBird-7 satellite to reach its intended orbit.
• Recently, the FCC approved 223 additional satellites for AST’s supplemental coverage-from-space network using spectrum leased from AT&T and Verizon.

Shares of AST SpaceMobile (ASTS) slipped 2% in premarket trading on Thursday after AT&T CEO John Stankey said SpaceX is expected to build a “robust” direct-to-device satellite network, signaling tougher competition ahead in the race to connect smartphones from space. 

ASTS stock is on track to log its second straight week of losses, sliding over 1% so far this week. 

AT&T Expects Several Satellite Networks To Compete

On AT&T’s first-quarter earnings call, Stankey said the telecom group expects multiple low-Earth-orbit satellite constellations, not just one, to ultimately serve the U.S. direct-to-device connectivity market.

While he reaffirmed AT&T’s ongoing partnership with AST SpaceMobile, he said that competing platforms are likely to develop similar capabilities over time. “I fully expect that SpaceX will ultimately have a robust direct-to-device capability,” Stankey said, adding he also expects Amazon’s planned low-earth orbit (LEO) network to build comparable functionality.

He said AT&T’s preferred long-term outcome is a satellite ecosystem supported by several viable providers, with the company maintaining wholesale relationships across multiple constellations rather than relying on a single partner.

AST Satellite Rollout Gets FCC Backing

The competitive remarks from AT&T follows a major regulatory win on Tuesday after the Federal Communications Commission (FCC) authorized 223 additional satellites for AST SpaceMobile’s supplemental coverage-from-space network using spectrum leased from AT&T and Verizon.

The approval supports AST SpaceMobile’s direct-to-device strategy across portions of the 700 MHz and 800 MHz bands and boosts the company’s commercial standing in spectrum-sharing deals with major U.S. wireless carriers.

BlueBird-7 Failure Raises Execution Concerns

Investor sentiment toward AST SpaceMobile has dampened following the BlueBird-7 satellite’s failure to reach its intended orbit after a launch anomaly during Blue Origin’s New Glenn-3 mission.

The satellite separated successfully and powered on as expected but was deployed at an altitude too low to sustain operations using onboard propulsion. The spacecraft, valued at about $23 million, is expected to be covered under insurance.

Despite the setback, the company said production continues through BlueBird-32, with BlueBird-8 through BlueBird-10 expected to be ready for shipment within about 30 days as it maintains its broader constellation rollout timeline.

SpaceX, Amazon Emerge As AST Competitors

SpaceX’s growing push into direct-to-device connectivity has increasingly put it on investors’ radar as a potential long-term rival to AST SpaceMobile’s space-based cellular model. The company’s Starlink constellation already includes hundreds of satellites for direct-to-smartphone connectivity, and its broader roadmap targets eventual full cellular coverage everywhere on Earth. 

Starlink remains a major revenue engine for SpaceX, generating $8 billion in profit on $15 billion to $16 billion in annual revenue last year. Its satellite network is also expanding into mobile connectivity, spectrum assets and space-based services as part of its Starship strategy. 

SpaceX is not the only emerging rival in the direct-to-device race. Amazon is also pushing its satellite ambitions through its Project Kuiper network and the $11.57 billion acquisition of Globalstar to enable direct-to-device connectivity around 2028. Amazon is targeting a constellation of 3,200 CEO satellites by 2029 as it prepares to roll out satellite internet services later this year.

How Do Retail Traders Feel About ASTS?

On Stocktwits, retail sentiment for ASTS has been ‘extremely bullish’ over the past week, amid a 20% decline in message volume during the same period.

One user called ASTS a “long-term satellite communications story with near-term trading driven mostly by sentiment.”

Another user noted, “there was definitely some selling pressure today, looking at the chart, every pop was sold. I really hope this is over soon.”

ASTS stock has surged nearly 300% over the past year. 

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