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AST SpaceMobile will support prime contractor STR under a new U.S. Space Force contract to develop its space-based cellular broadband network.
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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.
A class action lawsuit has been filed against AST SpaceMobile, Inc. and certain officers for alleged violations of federal securities laws. The complaint alleges that defendants made materially false and misleading statements regarding the company's competitive position in the satellite direct-to-cellular market, capital sufficiency, and user adoption rates, particularly following SpaceX's entry into the market through the EchoStar transaction. The class period spans March 4, 2025 to July 15, 2026.
AST SpaceMobile's stock fell 27% in October, down 71% from its highs, due to delays in satellite deployment, heavy cash burn ($719M negative free cash flow last quarter), and competition from SpaceX's Starlink direct-to-smartphone service. Despite the stock price collapse, the company still trades at a $15B market cap with minimal revenue, making it overvalued even after the decline. The analyst recommends avoiding the stock.
AST SpaceMobile and AT&T, supported by Ericsson and Nokia, have successfully completed an industry-first handoff between a ground-based cellular network and a direct-to-device satellite network.
AST SpaceMobile shares fell 11% amid market concerns regarding a potential deal between SpaceX and EchoStar involving Boost Mobile.