Why Did AST SpaceMobile Stock Pop Today?

Satellite communications company AST SpaceMobile (ASTS +9.33%) jumped 11% through 2:15 p.m. ET this afternoon, and on no obvious good news.

No obvious good news today, that is. Earlier in the week, AST offered some encouraging words to investors.

Image source: Getty Images.

AST is on a roll

On Tuesday, AST confirmed that it’s following up on the successful launch of its BlueBird satellites 8, 9, and 10 on June 17, with another three-satellite combo launch in August. Like their immediate predecessors, BlueBirds 11, 12, and 13 will ride a SpaceX (SPCX +0.31%) Falcon 9 into orbit, accelerating the company’s launch cadence to one launch every two months — and its annual launch capacity to perhaps as many as 18 satellites per year.

At this rate, AST’s 24 satellites currently under construction (BlueBirds 14 through 37) should reach orbit by the end of 2027.

And that’s just with SpaceX launching. If Blue Origin can get its launch pad repaired and get the bugs worked out of its New Glenn megarocket — or if United Launch Alliance returns to flight with its Vulcan Centaur sooner — it’s entirely possible AST will be able to speed up its launch cadence further.

Today’s Change

(9.33%) $6.12

Current Price

$71.74

Key Data Points

Market Cap

$20B

Day’s Range

$64.51 – $73.18

52wk Range

$36.08 – $133.86

Volume

904.2K

Avg Vol

21.9M

Gross Margin

-22429.27%

What’s next for AST SpaceMobile stock

Admittedly, it’s not ideal that AST needs to rely on a couple of giant space “ifs” to reach its launch target and put enough satellites in orbit to begin beta service on its direct-to-cell (DTC) satellite network.

Nor is it great news for AST that it’s currently 100% beholden to SpaceX — a DTC competitor — for this service. Especially not when AST’s satellite constellation still numbers in the double digits, while SpaceX has 650 satellites — and growing!

Still, “baby steps.” AST’s making progress, and that’s a good thing for its investors.