AST SpaceMobile (ASTS) Stock: Why The Price Surged Today

By Amit Chowdhry ● Mar 9, 2022
  • The AST SpaceMobile Inc (NASDAQ: ASTS) stock price increased by over 42% during intraday trading today. This is why.

The AST SpaceMobile Inc (NASDAQ: ASTS) – the company building the first and only space-based cellular broadband network-accessible directly by standard mobile phones – stock price increased by over 42% during intraday trading today. Investors are responding positively to AST SpaceMobile announcing it has signed a multi-launch agreement with Space Exploration Technologies Corp. (SpaceX). 

Along with a planned summer launch of the BlueWalker 3 test satellite (BW3), the agreement covers the launch of the first BlueBird satellite and provides a framework for future launches.

The BW3 satellite is slated to launch from Cape Canaveral on a Falcon 9 vehicle. And the satellite has an aperture of 693 square feet and is designed to communicate directly with cell phones via 3GPP standard frequencies.

The BlueBird satellites are designed for being compatible with the Falcon 9 vehicle, as well as other existing and planned industry launch vehicles. And these production satellites are designed to provide broadband commercial service directly to cell phones, without any additional hardware or software on the phone. 

At full capacity, AST SpaceMobile expects to be able to assemble up to 6 BlueBird satellites per month at its Texas manufacturing facilities, which offer a combined 185,000 of square footage.

AST SpaceMobile’s mission is to eliminate the connectivity gaps faced by today’s 5 billion mobile subscribers moving in and out of coverage zones, and bring cellular broadband to approximately half of the world’s population who remain unconnected. And partners in this effort are leading global wireless infrastructure companies, including Rakuten Mobile, Vodafone and American Tower.

KEY QUOTE:

“This agreement secures the availability for a reliable launch of our first production satellites out of the U.S. Our summer launch of BlueWalker 3 will complete the development phase for our company. We have also been industrializing our technology and preparing for the launch of the BlueBird satellites, with this agreement as a key step.”

— AST SpaceMobile Founder, Chairman and CEO Abel Avellan

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.