ASTS Stock Hits Turbulence: FCC Chief Flags New 'Three-Way' Race, BlueBird Delay Weighs On Lift-Off Plans

• FCC Chair Brendan Carr signaled intensifying competition in satellite-to-phone connectivity after Amazon’s $11.57 billion acquisition of Globalstar.
• Amazon is targeting about 3,200 satellites by 2029 as it builds a network to compete with SpaceX’s Starlink system.
• William Blair said the direct-to-device market is currently led by AST SpaceMobile and Starlink, with Amazon poised to become “a third major player.”

Shares of AST SpaceMobile (ASTS) came under pressure on Tuesday after the Federal Communications Commission (FCC) flagged an emerging three-player satellite connectivity race following Amazon’s deal to acquire Globalstar, while another delay to the company’s BlueBird launch further dented sentiment.

ASTS stock slumped 11% on Tuesday, logging its worst session in over a month.

FCC Flags Three-Player Satellite Connectivity Race

In an interview with CNBC, FCC Chair Brendan Carr said Amazon’s acquisition of Globalstar could reshape the competitive landscape in direct-to-device connectivity, pointing to a market that may ultimately be led by three major players.

Carr said regulators would like to see “three facilities-based competitors” emerge in the satellite-to-smartphone segment and named SpaceX, Amazon, AST SpaceMobile among the companies positioned in the race. He added the agency is “very open-minded” towards the deal as part of a broader push to strengthen U.S. leadership in next-gen communications infrastructure.

He also called direct satellite-to-phone connectivity “one of the interesting new trends,” where devices can connect “straight from a satellite right to your smartphone.”

Amazon’s $11.57 billion deal will fold Globalstar’s satellite operations, spectrum licenses, and infrastructure into its expanding low-Earth-orbit Project Leo constellation, positioning the company to roll out direct-to-device voice, messaging and data services beginning in 2028. The company is ramping toward a network of 3,200 satellites by 2029 as it seeks to challenge SpaceX’s Starlink system.

Echoing Carr’s view, William Blair said the direct-to-device satellite connectivity market is currently led by AST SpaceMobile along with SpaceX’s Starlink, adding that Amazon’s acquisition of Globalstar positions it to become “a third major player.”

BlueBird Block 2 Delay Adds Rollout Uncertainty

Separately, AST SpaceMobile’s BlueBird Block 2 satellite launch slipped again this week, moving from an earlier Thursday target to Saturday under the updated launch schedule for Blue Origin’s New Glenn rocket.

The next-gen BlueBird Block 2 satellites can deliver up to 10x the bandwidth capacity of earlier BlueBird spacecraft and support peak data speeds of up to 120 Mbps as part of AST SpaceMobile’s plan to enable continuous satellite-to-phone broadband coverage across the U.S.

The Block 2 satellites are expected to support 5,600 coverage cells nationwide and can deliver voice, full data, and video connectivity directly to standard mobile devices. Featuring communications arrays of up to about 2,400 square feet, they are also set to become the largest commercially deployed satellites in low-Earth orbit once launched.

How Do Retail Traders Feel About ASTS?

On Stocktwits, retail sentiment for ASTS was ‘extremely bullish’ amid an over 200% surge in 24-hour message volume. 

One user contrasted Amazon’s market-cap gains following the Globalstar deal with AST SpaceMobile’s valuation, saying “ASTS was lots more spectrum and highly superior tech.”

Another user questioned the company’s deployment timelines, saying, “Is it even possible to reach their goals of 45-60 sats by 2026? We are 1/3 thrugh 2026 and have not launched a single satellite yet.”

ASTS stock has surged nearly 290% over the past year. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: WULF, GSAT, BE Stocks Hit 52-Week Highs: What’s Driving The Rally?