Shares of Viasat Inc. (VSAT) got a nice little premarket lift on Tuesday. The reason? The company is now in the room with Boeing (BA), going through a technical evaluation process. Boeing is taking a look at Viasat's next-generation AERA antenna to see if it's a good fit for its commercial aircraft programs, like the 737 MAX and 777X.
Think of it like this: Boeing is considering adding Viasat's new gadget to its official menu of options for airlines buying new planes. If the antenna gets the thumbs up, it becomes a "line-fit option." That means an airline could order a brand-new Boeing jet and have this specific Viasat connectivity system baked right in from the factory floor, which is a lot cleaner than trying to install it later.
What's So Special About This Antenna?
The terminal, called AERA (which stands for Electronically Steered Antenna), is designed to fit neatly under Boeing's standard aerodynamic shroud. Viasat expects it to start flying on commercial aircraft in early 2028.
The tech pitch is about solving a common gripe: spotty airplane Wi-Fi. The AERA system uses something called simultaneous multibeam technology. In plain English, it can talk to multiple satellite networks at the same time. The idea is to hop between connections seamlessly, aiming to deliver a more consistent and reliable internet signal at 35,000 feet.
It's also built to be a workhorse. Viasat says it's lightweight, has a low profile, is solid-state (meaning fewer moving parts to break), and includes built-in redundancies. The goal is to cut down on maintenance headaches, reduce time planes spend grounded, and lower operating costs for airlines.
Easy Upgrades and a Vote of Confidence
For airlines that are already Viasat customers, the company says switching to the new AERA system shouldn't require major structural surgery on their existing planes. That means less downtime for upgrades and potential benefits like reduced weight and aerodynamic drag.
The deal is also a nod to a longer partnership. "This agreement continues our long tradition of working to bring powerful connectivity solutions to the market and is an important milestone in bringing Viasat AERA to airlines around the world," said Brian Simone, Vice President of Aviation Products at Viasat.
He added that being a line-fit option will let them "deliver a next-generation connectivity solution that enhances the passenger experience through simultaneous multi-orbit flexibility, and smart, adaptive traffic routing, while reducing operational complexity for airlines."
What the Charts Are Saying About Viasat
All this news is landing as Viasat's stock is already having a moment. It's trading near its 52-week high of $59.19. The numbers suggest buyers have been in charge for a while.
The stock is sitting 13.4% above its 20-day moving average and a hefty 34.3% above its 100-day average, which points to solid short- and intermediate-term strength. Its Relative Strength Index (RSI) is at 62.65, which is in neutral territory—so it's not considered overbought yet. Another momentum indicator, the MACD, is also above its signal line, hinting at continued bullishness.
Traders might be watching a couple of key levels:
- Key Resistance: Around $59.00. This is near the recent high, where the stock might run into some selling pressure.
- Key Support: Around $50.00. This could be a zone where buyers might show up if the price dips.
The really eye-popping number is the 12-month performance: up 573.62%. That's a massive run, reflecting a huge amount of investor confidence in the company's trajectory over the past year.
ETF Exposure: Why Fund Flows Matter
Viasat isn't just a stock that active traders are watching. It also holds meaningful positions in a few exchange-traded funds (ETFs). Because of how ETFs work, significant money moving into or out of these funds can force automatic buying or selling of the stocks inside them, including VSAT.
Here's where it shows up:
In the premarket session on Tuesday, VSAT shares were up 2.99% at $58.24.
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