AST SpaceMobile Sinks 7% as Satellite Rival Clears Regulatory Hurdle; Rocket Lab Drops 4%, Planet Labs Falls 5%

A regulatory win for a satellite rival is hitting AST SpaceMobile (NASDAQ:ASTS) stock harder than the rest of the space group, since the company’s business runs through wireless carriers. AST SpaceMobile stock is down 7% to $56.40 in afternoon trading. That slide leaves ASTS stock down 22% so far this year.

Meanwhile, Rocket Lab (NASDAQ:RKLB | RKLB Price Prediction) stock is down 4% to $68.74, a softer decline for a launch and spacecraft builder that sits a step removed from phone connectivity. At the same time, Planet Labs (NYSE:PL) stock is down 5% to $16.86 as the Earth-imaging specialist gets pulled into the sector selling.

Two funds show how concentrated the damage is. The Procure Space ETF (NASDAQ:UFO) is down 3% to $41.82, a smaller drop than any of the three space stocks above. For a wider view, the SPDR S&P 500 ETF Trust is down 0.3% to $774.76.

Regulators Clear a Rival’s Carrier-Free Phone Link

SpaceX (NASDAQ:SPCX) is the rival behind the selloff, and the company’s new clearance goes straight at direct-to-phone service. A new order has been issued. Under it, the Federal Communications Commission authorized SpaceX to build a satellite constellation that links directly to ordinary phones using spectrum the company already owns, waiving the rule that would otherwise have required a leasing arrangement with a wireless carrier. That order came from a bureau of the agency, so the full commission can still review it, and none of those satellites are in orbit yet.

Japan offers AST SpaceMobile a partial offset. A U.S. and Japan joint statement welcomed the company’s satellite partnership with Rakuten. The country’s communications ministry has preliminarily selected that venture for a government program that would supply capital without issuing shares or debt, according to AST SpaceMobile. Government approvals and final agreements are still required before that selection becomes binding for AST SpaceMobile.

Why the Carrier Model Takes the Hit

AST SpaceMobile builds large satellites that connect to standard phones through agreements with wireless carriers, and that relationship is the company’s path to every subscriber, with the spectrum it uses coming from those partners. Rocket Lab launches payloads and builds spacecraft for other operators, while Planet Labs sells Earth-imaging data on subscription, so both businesses sit outside the carrier spectrum arrangements that the authorization changes.

The bull case for AST SpaceMobile starts with sovereign backing of the kind Japan is weighing, which could fund the company’s build without diluting shareholders, and carriers may still prefer a partner like AST SpaceMobile that leaves each subscriber relationship in their own hands. Such a pitch carries extra weight now that a rival can approach phone users directly.

A rival able to reach phones on its own spectrum undermines the gatekeeper role that made AST SpaceMobile’s carrier-friendly pitch valuable. Adding pressure, AST SpaceMobile stock already sits well below its starting level for the year, while the company’s constellation build keeps consuming cash.

What to Watch Next

Investors can watch for any move toward a full-commission review of the bureau’s order. Launch progress at SpaceX also matters, since the authorization covers a constellation not yet in orbit.

AST SpaceMobile shareholders could look for government approvals and final agreements that turn the Japan selection into committed capital, funding the expansion without new shares or debt. Position sizes should remain small in any of these fast-moving space stocks.

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