AST SpaceMobile Hits Record High on Commercial Satellite Launch Announcement

After the satellite communication business confirmed an early September timeframe for its first commercial launch of a network in low-Earth orbit, shares of AST SpaceMobile Inc. surged more than 50% to close at a record high. The Midland, Texas-based business is collaborating with AT&T Inc. and Verizon Communications Inc. to develop a strategy to offer standard consumer handsets wireless service from space; this is a market that SpaceX’s Starlink is also aiming for. The market value of AST SpaceMobile has increased to over $8 billion due to the stock spike. According to President Scott Wisniewski, AST intends to start using its satellites by the end of the year.

Elon Musk’s Rival AST to Launch First Commercial Satellites with SpaceX

Although Elon Musk’s business will be a rival in the direct-to-device market, AST intends to launch its first five commercial satellites into orbit from Cape Canaveral, Florida, using a SpaceX rocket next month. AST is currently developing seventeen additional satellites, the first of which is slated to launch on a rocket from one of Musk’s competitors in early 2025. “We’re launch-vehicle agnostic,” stated Wisniewski, who declined to reveal the identity of the rocket manufacturer or the schedule for launching any of the new satellites.

FCC Approval and Poor Financial Performance: AST’s Shares Surprisingly Rise

AST stated on August 5 that it had received an initial license for space-based operations from the Federal Communications Commission. That doesn’t mean the regulatory process is over, though. According to Wisniewski, AST, AT&T, and Verizon intend to submit data to the FCC for approval of cellular frequencies. Following the market close on August 14, AST released quarterly profits and sales that fell short of expectations, resulting in $900,000 in revenue and a $72.6 million net loss. This news caused the stock price to soar.

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