Al Root

Shares of satellite-services company ViaSat tanked early Tuesday. There are a couple of possible explanations.

First, the stock. Shares were off 18% in early trading at $9.16, while the S&P 500 and Dow Jones Industrial Average were down about 0.2%.

Shares of peers weren't moving like Viasat. Globalstar stock is up 3.3%, while shares of AST SpaceMobile were down 1.9%.

All three of those companies perform, or want to perform, space-based wireless connectivity for consumers and businesses.

There has been some volatility in the space-based connectivity business. For starters, Globalstar stock just finished a 1-for-15 reverse stock split as the company moved its stock listing to the Nasdaq. That can make quotes look strange while data services adjust for the split.

What's more, shares of Globalstar and AST rose on Monday after T-Mobile US announced a partnership with SpaceX to bring satellite-to-cell Wi-Fi connectivity to its network.

SpaceX is a space behemoth. It has more than 7,000 small satellites orbiting the planet. At last count, its Starlink Wi-Fi service had some 5 million subscribers globally.

It's a tough competitor, but the T-Mobile news appears to have sparked an idea for investors. Ubiquitous space-based Wi-Fi is closer than they had assumed.

For now, the best explanation looks to be planned sales by large holders. Several institutions indicated plans to sell stock in Feb. 10 filings with the Securities and Exchange Commission. No one likes to hold, or buy, shares before a large sale is completed.

Sellers include the Canadian Pension Plan and Ontario Teachers Pension Plan. Both funds acquired ViaSat stock in the 2023 merger with Inmarsat.

Shares of ViaSat dropped Monday while Globalstar and AST shares rose, but ViaSat had a head start. Shares rose almost 20% at the end of last week in response to fiscal third-quarter results. The company reported better-than-expected earnings and lowered its spending guidance for fiscal year 2025. The company's fiscal year 2025 ends in March.

Post-earnings volatility is another potential explanation. Through early trading, shares are down about 4% since earnings were reported.

That makes the Tuesday move look more understandable. Still, investors will be on the lookout for additional tidbits.

Write to Al Root at allen.root@dowjones.com

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February 11, 2025 10:49 ET (15:49 GMT)

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