Stock Market Today, May 29: AST SpaceMobile Falls After Blue Origin Rocket Test Failure Raises Launch Delay Fears

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NASDAQ: ASTS

AST SpaceMobile

Today's Change

(-14.79%) $-19.68

Current Price

$113.41

Key Data Points

Market Cap

$40B

Day's Range

$105.37 - $115.50

52wk Range

$22.47 - $133.86

Volume

53.6M

Avg Vol

18M

Gross Margin

-22429.27%

AST SpaceMobile (ASTS 14.79%) is working to build a space-based cellular broadband network accessible directly by standard smartphones. The stock closed Friday at $113.41, down 14.79%. The drop came after reports of a Blue Origin New Glenn test rocket explosion and a Deutsche Bank (DB +1.21%) downgrade. Investors are watching for potential launch delays and execution risk around its BlueBird constellation rollout.
Trading volume reached 47.8 million shares, coming in about 159% above its three-month average of 18.4 million shares. AST SpaceMobile IPO'd in 2019 and has grown 1,061% since going public.

How the markets moved today

The S&P 500 (^GSPC +0.22%) added 0.23% to finish Friday at 7,581, while the Nasdaq Composite (^IXIC +0.20%) rose 0.20% to close at 26,973. Within communication equipment names, industry peers Iridium Communications (IRDM +1.01%) closed at $51.78 (up 1.01%) and Gilat Satellite Networks (GILT 3.70%) ended at $17.17 (down 3.70%) as investors reassessed satellite-connectivity risk.

What this means for investors

The Blue Origin New Glenn explosion could impact AST SpaceMobile’s near-term plans. The company has utilized several commercial launch providers for its BlueBird constellation launches, including Blue Origin and SpaceX.

Earlier this month, AST CEO Abel Avellan updated investors with the company’s plan to launch approximately 45 satellites into orbit this year, noting a “multi-partner launch strategy.”

Delays from Blue Origin could impact AST SpaceMobile’s plan, giving AST investors one more added risk to the speculative stock. Added pressure on the stock came from a Deutsche Bank downgrade, including a price target cut to $106 per share. As a speculative space play, investors should expect more volatility ahead.

ASTS-13.67%
US5000.04%
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