This morning, shares for T-Mobile, Globalstar, and AST SpaceMobile experienced an increase.
If you tuned in to last night's football game, you might've noticed the numerous ads from T-Mobile US (NASDAQ: TMUS 2.43%) pimping its collaboration with Elon Musk's SpaceX's Starlink service. The telco giant is extending this service to anyone in the U.S., not just its customers, promising to solve the problem of the whopping 500,000 square miles of unreachable territory due to cellphone coverage. With that said, the stock market also took notice. T-Mobile's shares were up 3% by 10:50 a.m. ET in Nasdaq trading on Monday.
What's intriguing is that while T-Mobile's boost was minimal, satellite communication stocks – like AST SpaceMobile (NASDAQ: ASTS 3.95%) and Globalstar (NYSEMKT: GSAT 0.14%) – were on a different level. To be specific, AST saw an astounding 23% surge, and Globalstar wasn't far behind with a sizable 11.3% increase.
TMUS
Abiding by the one-minute commercial, T-Mobile powers on by partnering with Starlink to launch hundreds of DTC satellites, enabling users to automatically connect to the phone they have without tower interruption. The catch? As of now, users across the U.S. – regardless of their carrier – can sign up for this service for free until July 2025. Yet, after this, the cost will be folded into T-Mobile's "Go5G Next" and pricier plans, much like an additional feature.
with SpaceX's Starlink service.
Still, one might suppose that's bad news for Globalstar and AST SpaceMobile. Despite their plans to offer their DTC services, they'll now be competing with the giant telco. However, neither Globalstar nor AST's shares appear overly shaken. Why’s that? Let's dig a little deeper.
ASTS
Globalstar actually provides emergency text services for Apple users. While it falls short of T-Mobile's space network, Globalstar does have some presence in the market. As for AST, AT&T and Verizon are waiting for the green candle from regulatory bodies before they can boast about beta service for DTC calls.
GSAT
In truth, T-Mobile's advertisement may be more of a hindrance to the other companies or, alternatively, a precious promotional tool. Either way, it seems that their stocks stand to gain from T-Mobile's broadcasts, as investor sentiment leans positively towards both companies – suggesting that they hold serious potential for success in the satellite market.
partnered with Starlink to launch "hundreds" of DTC satellites, thus creating -- and this is key -- "the only space network that automatically connects to the phone you already have."
- If you're interested in investing in the satellite communication sector, you might want to consider stocks like T-Mobile US, AST SpaceMobile, and Globalstar, following T-Mobile's partnership with SpaceX's Starlink.
- In the finance world, the announcement of T-Mobile's collaboration with Starlink was met with a significant increase in the shares of satellite communication companies, such as AST SpaceMobile and Globalstar.
- To attract potential investors, an in-line article pitch could discuss the impact of T-Mobile's partnership with Starlink on the satellite communication market, highlighting the potential benefits and challenges for companies like AST SpaceMobile and Globalstar.
- Reporting on the recent developments in the satellite communication market, a show might consider doing a show-benchmark-compare between T-Mobile's Starlink service and other companies like AST SpaceMobile and Globalstar, discussing the potential impact on their stocks and overall performance.