ASTS Stock Is Set To Reverse 4-Session Loss – Here’s Why Investors Are Excited

AST SpaceMobile said it is set to launch BlueBird 8, 9, and 10 satellites next week aboard a SpaceX Falcon 9 rocket on June 17.

• ASTS said the latest launch will support space-based cellular broadband services, voice, data, and video to standard, unmodified smartphones.
• The launch has been scheduled nearly two months after BlueBird 7 failed to reach orbit during Blue Origin’s New Glenn Mission-3 launch.
• ASTS counts major industry players such as AT&T and Verizon as its strategic partners.

Shares of AST SpaceMobile (ASTS) climbed 7% in pre-market trading on Tuesday, after the company confirmed its plans to launch its BlueBird 8, 9, and 10 satellites next week aboard a SpaceX Falcon 9 rocket, two months after its BlueBird 7 satellite suffered a setback.

ASTS shares have been in a bit of a slump lately, declining more than 22% over the past four sessions.

Launch Date Set For June 17

AST SpaceMobile said the satellites are part of the company’s effort to build a global space-based cellular broadband network that connects directly to standard smartphones without requiring special hardware. The new BlueBird satellites will support voice, data, and video services for commercial and government customers.

The company is expected to launch the satellites on June 17 from Cape Canaveral in Florida.

“Our next-generation BlueBird satellites, the largest phase-arrays ever deployed in low Earth orbit, together with our expanding manufacturing capabilities, position AST SpaceMobile to continue scaling toward continuous global space-based cellular broadband coverage supported by a diversified launch strategy,” said Scott Wisniewski, President of AST SpaceMobile.

All Eyes On Latest Launch After BlueBird-7 Mishap

In April, AST SpaceMobile BlueBird-7 satellite failed to reach its intended orbit after launch. While the satellite successfully separated from the rocket and powered on, the upper stage of Blue Origin’s New Glenn-3 mission placed it at an altitude too low for operational deployment.

CEO Abel Avellan said the issue stemmed from the rocket’s second stage, which did not deliver the spacecraft to the planned orbit.

The company has agreements with nearly 60 mobile network operators. It counts major industry players such as AT&T, Verizon, Vodafone, Rakuten, Google, Bell, Telus, and American Tower among its strategic partners.

SpaceX’s IPO In Spotlight

AST SpaceMobile stock has been under pressure amid concerns about the potential impact of SpaceX’s upcoming market debut, which is expected to be one of the largest U.S. IPOs ever.

Meanwhile, Barclays cut its price target on AST SpaceMobile to $60 from $65 while maintaining an ‘Underweight’ rating, according to The Fly. The firm cited launch delays and recent operating performance in its revised outlook.

Retail Bulls Eye $120

Retail sentiment surrounding ASTS on Stocktwits has remained ‘bearish’ over the past 24 hours.

One user expects the stock to climb to $120 on Tuesday. It is currently trading at around $98.

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Another user highlighted ASTS’ growth prospects.

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ASTS shares have gained more than 30% so far this year.

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