NPA Stock Price Increases Over 15%: Why It Happened

By Amit Chowdhry ● Feb 9, 2021
  • The stock price of New Providence Acquisition Corp (NASDAQ: NPA) is trading at over 15% as of 2:24 PM ET today. This is why it happened.

The stock price of New Providence Acquisition Corp (NASDAQ: NPA) is trading at over 15% as of 2:24 PM ET today. It appears that New Providence Acquisition received recommendations from a couple of organizations today.

Timothy Collins of TheStreet.com recommending buying New Providence Acquisition in a news article earlier today. Collins said that AST & Sciences will be driving the next evolution in smartphone network growth. AST & Sciences will soon go public through a reverse merger with New Providence Acquisition — which was originally announced on December 16.

AST & Sciences is building Space Mobile, which is a space-based cellular broadband network that can be accessed directly by standard mobile devices. Some of the investors that put money into AST include Vodafone, American Tower, and Samsung.

“With a projected $423 million of cash against no debt on the balance sheet, AST SpaceMobile will be positioned to rapidly grow out the first phase of its network. While the company anticipates the total network build-out will cost around $1.4 billion through 2024, doing it in phases will reduce risk,” wrote Collins in the article. “That being said, management expects revenue of $1.07 billion in 2024. And that assumes a subscriber penetration rate of less than 1%. Combine that penetration rate with the revenue and you get a feel for how enormous of a market this is for SpaceMobile. We’re talking five billion phones across the world. Thanks to existing partnerships, upon completion, AST SpaceMobile’s network will be offered to 1.3 billion customers.”

Space Mobile will essentially help fill coverage gaps, especially in underserved areas. And it could be used for replacing large towers while also offering higher data rates at a low latency.

Another catalyst driving the stock price up is a tweet published by Citron Research. And Citron Research gave NPA a price target of $50.

“Most compelling Space/5G/ESG story in the market.  All SPACS are speculative so why not go with one with a $1 trillion TAM that has the potential to change the world with real partnerships.  The most important Space story in the market.  Report to follow,” wrote Citron Research in the tweet, which also featured comparisons to the multiples of other companies in the industry:

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