Shares of AST SpaceMobile Inc (NASDAQ:ASTS) are moving lower on Thursday, even after the company was awarded a U.S. Space Force contract. Here’s what you need to know.
- AST SpaceMobile stock is at significant support. What’s behind ASTS weakness?
AST SpaceMobile Awarded Space Force Contract Support Role
AST SpaceMobile announced that it will support prime contractor STR under a U.S. Space Force contract. The effort funds an additional phase of technology development to advance sensing capabilities using AST SpaceMobile’s commercially developed space-based technologies.
“Our experience deploying phased arrays in low Earth orbit, combined with deep engineering expertise and technology supported by more than 3,900 patent and patent-pending claims, demonstrates the potential of our platform to support commercial applications and the technology-development activities being evaluated under this contract,” said Chris Ivory, CEO of AST SpaceMobile Defense.
The company did not disclose the contract value details or timeline.
Broader Market Weakness Hits ASTS
The contract news on Thursday is being outweighed by cautious sentiment toward space stocks following Tuesday’s midterm elections. On Wednesday, SpaceX stock fell on concerns that the new Democratic Congress could scrutinize Elon Musk’s federal contracts, and the selling spread to other space stocks. That weakness has carried over into Thursday’s session as broader indices face heavy selling pressure.
Investors may also be positioning ahead of the company’s third-quarter earnings report, due after the market close on Monday. Analysts expect the company to report a loss of 40 cents per share and revenue of $46.64 million, according to Benzinga Pro estimates.
AST SpaceMobile stock has been under pressure for weeks, falling 4.12% on Wednesday and about 27% in October, as investors took a more cautious stance on growth stocks amid expectations for higher rates. The stock is down about two-thirds from its May peak.
AST SpaceMobile has a consensus Neutral rating among analysts with an average price target of $73.47, according to Benzinga analyst data.
ASTS Shares Move Lower
ASTS Price Action: AST SpaceMobile shares were down about 15.05% at $30.25 at the time of publication on Thursday, according to Benzinga Pro.
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