AT&T, Amazon Forge Cloud, Satellite Partnership. Why Did AST SpaceMobile, GlobalStar Sell Off?

• ASTS stock tumbled over 13% to 100.03 and GSAT stock fell more than 6% to 57.91 on the news, while AT&T stock rose 1% and Amazon stock dipped 2%
• Amazon's Project Kuiper, still in testing phase, plans to launch over 3,000 satellites to provide internet connectivity to 400-500 million households, competing with Elon Musk's Starlink
• The partnership will enable AT&T to deliver fixed broadband services to business customers using Project Kuiper's low-Earth-orbit satellite network and AWS cloud capabilities

Summary: AT&T and Amazon Partnership Pressures Satellite Competitors

Key Development:

AT&T and Amazon announced a strategic partnership on Wednesday combining AT&T's network infrastructure with Amazon Web Services (AWS) cloud computing and Project Kuiper satellite internet service. The collaboration focuses on delivering fixed wireless broadband services to business and enterprise customers, not consumer mobile phones.

Market Impact:

The announcement triggered significant sell-offs in satellite communications stocks:

• AST SpaceMobile (ASTS): plunged over 13% to $100.03
• GlobalStar (GSAT): dropped more than 6% to $57.91
• AT&T stock (T): rose over 1% to $27.32
• Amazon stock (AMZN): declined more than 2% to $232.96

Partnership Details:

Amazon's Project Kuiper, announced six years ago, plans to deploy over 3,000 low-Earth-orbit satellites to provide internet connectivity to 400-500 million households, governments, and enterprises. The service will compete with Elon Musk's Starlink. AT&T will leverage AWS's cloud capabilities and AI tools for infrastructure modernization, while AWS benefits from AT&T's fiber networking expertise.

Competitive Landscape:

AT&T maintains separate agreements with AST SpaceMobile for satellite-enabled mobile phone connectivity in rural areas. GlobalStar has a similar partnership with Apple. Competitors include Iridium, Starlink, Verizon, and Vodafone.

2026 Performance:

AT&T stock has gained approximately 10% year-to-date, while Amazon stock remains roughly flat.

Additional details expected at Mobile World Congress in early March.