AST SpaceMobile (NASDAQ:ASTS) stock jumped 14% on Monday, Nov. 9, after the company and Japanese carrier Rakuten announced a joint venture to bring satellite cell service to Japan.
The S&P 500 (SNPINDEX:^GSPC) and the Nasdaq Composite (NASDAQINDEX:^IXIC) finished up 2.3% and 2.7%, respectively.
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Rakuten AST joint venture targets Japan satellite coverage
The two companies, which have been partners since 2020, announced on Monday that they have agreed to form Rakuten AST — controlled by Rakuten — which will use AST’s satellites to extend cell service to areas with poor coverage or keep people connected in the case of disaster.
Rakuten AST will receive up to about $1 billion in Japanese government funding, though this was already known after the company won a bid for the funding in June.
AST SpaceMobile earnings fall short, but guidance holds
After hours, AST stock gave back some of the gain after it reported earnings. Revenue nearly tripled from a year earlier, reaching $42.3 million, but that fell short of Wall Street’s expectations. AST lost $0.44 per share and stuck with its full-year revenue forecast of $150 million to $200 million.
Image source: AST.
AST says it still expects to start offering intermittent coverage in the U.S. and other markets by the end of the year. It also said it expects 45 of its BlueBird satellites in orbit by mid-2027.
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