ASTS stock retreats sharply after SpaceX IPO rally, trading near $63 as satellite deployment delays weigh on outlook.
AST SpaceMobile (NASDAQ: ASTS) shares have fallen 58% from their late-May high of $133, now trading below $63 per share. The decline follows a broader pullback in space-related stocks after SpaceX’s June 12 IPO, which had previously fueled investor enthusiasm for the sector.
The company aims to deploy 45 to 60 BlueBird satellites to provide global cellular broadband coverage, targeting 3 billion potential users. However, delays with launch partner Blue Origin have pushed back its timeline, raising concerns about execution risks. ASTS partners with major carriers like AT&T and Vodafone under a 50/50 revenue-sharing model.
Market reaction has been cautious as investors assess whether the sell-off presents a buying opportunity or reflects deeper challenges in scaling satellite broadband services.