Space stocks fall after Amazon confirms satellite network service launch

Shares in competing space technology companies fell overnight after Amazon chief executive Andy Jassy confirmed on an earnings call that the company will launch its Leo satellite service this year. Foreign Policy Journal, Yahoo Finance, and TradingView reported that AST SpaceMobile dropped 5 percent, Rocket Lab fell 6 percent, and the SpaceX proxy fund SPCX declined 4 percent in after-hours trading following the announcement. [1][4][5]

The overnight market decline reversed earlier gains made during regular trading. Foreign Policy Journal reported that AST SpaceMobile had added 2 percent and Rocket Lab had climbed 1 percent in regular trading before the earnings call. The outlet noted that AST SpaceMobile has fallen 41 percent year-to-date, while Rocket Lab is down 15 percent and SPCX has declined 11 percent. [1]

Amazon is building a low Earth orbit satellite network to compete directly with existing internet constellations. Make Tech Easier reported that Amazon announced a demonstration with the United States Army in Maryland on October 13, where a 5.2-pound Leo Pro antenna delivered data speeds exceeding 400 megabits per second to a laptop using passing satellites. As FTMQ Space reported earlier, Amazon manufactures its Leo satellites in Kirkland, Washington, and holds launch agreements with United Launch Alliance, Arianespace, and Blue Origin. [7][10][11]

Amazon Leo will compete against SpaceX's Starlink network. Starlink began launching low Earth orbit broadband satellites in 2019 and operates approximately 11,150 active satellites serving roughly 160 countries and territories. Foreign Policy Journal noted that Amazon's network currently includes about 400 satellites. [1][9]