New York, February 4, 2026, 20:11 EST — The market has closed.
- Shares of AST SpaceMobile dropped 10.6% following AT&T’s announcement of new deals with AWS and Amazon Leo.
- AT&T clarified that the Amazon Leo project focuses on fixed broadband services for businesses and won’t affect its existing plans with AST.
- Investors are focused on upcoming developments at Mobile World Congress and awaiting the timing of AST’s next satellite launch window.
AST SpaceMobile shares fell 10.6% to close at $103.50 on Wednesday, following AT&T’s announcement of a cloud-and-satellite deal with Amazon that rattled investors in the satellite-to-smartphone sector. The Nasdaq-listed stock hit an intraday low of $97.61, with roughly 20 million shares changing hands.
This move is crucial since AST’s bullish outlook depends on “direct-to-cell” service — satellites connecting straight to regular phones without extra gear, tapping into carriers’ spectrum. If a major carrier starts exploring alternatives, it could shake the stock, especially as deployments are still ramping up and timelines remain under the microscope.
Amazon’s move into low Earth orbit satellites ramps up that sensitivity. Amazon Leo, previously known as Project Kuiper, plans to deploy over 3,000 satellites, thrusting the tech giant deeper into the connectivity wars investors see shaping mobile coverage beyond traditional cell towers. Amazon News
AT&T, Amazon Web Services, and Amazon Leo announced new agreements that go beyond satellite connectivity. The deals include shifting some AT&T workloads to AWS Outposts and boosting AWS data centers with high-capacity fiber links. “Fiber is the foundation of that future,” said AT&T Business product chief Shawn Hakl. The companies plan to share more details at Mobile World Congress 2026. Business Wire
AT&T sought to clarify the distinction between its Amazon deal and AST’s strategy. A company spokesperson explained that Amazon Leo aims to enhance fixed broadband for enterprise clients, whereas AST targets direct-to-cell service for mobile users. “This new agreement with Amazon LEO does not impact our relationship or plans with AST SpaceMobile,” the representative insisted. Fierce Telecom
Shares of other satellite companies shifted as well. Globalstar dropped roughly 5.8%, Iridium was down about 0.6%. AT&T gained around 1.5%, while Amazon slipped approximately 2.4%.
The selloff reflected a wider shake-up in space stocks, MarketWatch noted, as investors rapidly adjusted valuations on firms tied to massive, long-term projects amid fresh competition news. Rocket Lab and several other space companies also dropped during the same downturn. MarketWatch
AT&T plays a key role in AST’s narrative. In 2024, the two companies sealed a deal to develop a space-based broadband network aimed at delivering connectivity straight to cell phones, according to Reuters. This move raised hopes that major carriers might serve as anchor clients for the service. Reuters
AST has directed investors’ attention to upcoming launch milestones. The company confirmed in January that its next-generation BlueBird 7 satellite is set to launch in late February on Blue Origin’s New Glenn-3 mission from Cape Canaveral. This move is part of a broader strategy to ramp up launch frequency throughout 2026. Business Wire
Execution and timing remain the major risks. Satellite analyst Tim Farrar of TMF Associates told Light Reading he doubts the plan for five launches by the end of Q1 and “45 to 60 by the end of the year” will materialize, citing limited launch availability and AST’s track record of delays. Light Reading
Trading restarts Thursday, and investors want clarity on how AT&T plans to integrate Amazon Leo with its direct-to-cell strategy. Another key moment: Mobile World Congress in Barcelona, March 2–5. That’s where carriers and satellite operators often reveal partnerships and timelines that can shift these stocks. mwcbarcelona.com
