Viasat Inc. (NASDAQ:VSAT) shares traded lower on Monday after announcing a deal with Space42.
Space42 is a UAE-based AI-powered space technology company formed in 2024 through the merger of Bayanat and Yahsat.
The companies signed a binding agreement to establish Equatys, a shared satellite and ground infrastructure venture.
Viasat, Space42 Commit Up To $1 Billion
The companies plan to commit up to $1 billion in combined equity to Equatys.
Viasat and Space42 will initially contribute $400 million each, while Space42 expects to add another $200 million in a future funding round open to third-party investors.
Viasat is expected to serve as Equatys’ prime technology contractor.
Equatys Targets Direct-To-Device Market
Equatys will connect smartphones and IoT devices directly to satellites, extending advanced mobile services to areas with limited or no terrestrial coverage.
The network is designed to scale to 2,800 satellites across 60 orbital planes and three altitude layers.
Its Tower Company model will allow operators to share infrastructure while retaining their spectrum rights, customers, and commercial relationships.
Viasat and Space42 together have relationships with more than 400 mobile operators and access to over 100 MHz of globally coordinated mobile satellite spectrum.
Viasat Chairman and CEO Mark Dankberg said Equatys will create "a scalable and interoperable architecture" for the satellite connectivity market.
VSAT Technical Outlook: Trend And Key Levels
ViaSat, Inc. is currently showing a mixed technical picture with its price trading below several key short-term moving averages, which suggests some bearish pressure in the near term. However, the stock remains well above its long-term 200-day moving average, indicating a strong bullish trend over the longer term.
The RSI is at 49.51, which is considered neutral, suggesting that there isn’t strong momentum in either direction right now. This level indicates that traders should be cautious as the stock could either consolidate or prepare for a move in either direction.
MACD is above its signal line, indicating bullish momentum, which could support a potential upward move if the price breaks through resistance. Traders should keep an eye on this indicator as it often precedes price movements, especially in conjunction with other signals.
Key support is at 65.50, while resistance is at 75.50; a breach of either level could signal a significant shift in momentum. If ViaSat, Inc.’s stock breaks above resistance, it could attract more buyers, while a drop below support might trigger selling pressure.
The 50-day SMA is above the 200-day SMA, which reflects a bullish long-term trend, but the 20-day SMA is currently below the 50-day SMA, indicating potential short-term weakness. This mixed moving average setup suggests that traders should be prepared for volatility as the stock navigates these levels.
Over the past 12 months, ViaSat, Inc.’s stock has surged by 147.01%, showcasing a strong upward trend that reflects positive market sentiment and growth potential. This impressive performance highlights the stock’s resilience and ability to recover from previous lows, making it an interesting candidate for long-term investors.
VSAT ETF Exposure
- Invesco S&P SmallCap Momentum ETF (NYSE:XSMO): 4.95% weight
- Tema Space Innovators ETF (NYSE:NASA): 5.47% weight
- Procure Space ETF (NASDAQ:UFO): 5.70% weight
VSAT’s sizable weighting in these ETFs means fund inflows or outflows could translate into corresponding passive buying or selling of the stock.
VSAT Price Action: Viasat shares were down 3.86% at $71.44 at the time of publication on Monday, according to Benzinga Pro data.
Photo by Michael Vi via Shutterstock
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