AST SpaceMobile stock climbs as Sept. 12 targeted for first commercial satellite launch

By James Rogers

Space-based broadband company AST SpaceMobile is planning to launch its first five commercial satellites from Cape Canaveral on or after Sept. 12

Shares of AST SpaceMobile Inc. are up 2.4% in premarket trades, lifted by the space-based broadband company's plan to launch its first five commercial satellites on or after Sept 12 from Cape Canaveral, Florida.

Boosted by the announcement AST SpaceMobile (ASTS) shares ended Wednesday's session up 12.5%, registering their biggest daily percentage gain since Aug. 19, when they climbed 24.4%.

Related: AST SpaceMobile's stock hits new intraday high ahead of first commercial satellite launch

The satellites, called BlueBirds, each feature the largest ever commercial communications arrays to be deployed in low Earth orbit, according to AST SpaceMobile. "After launch, the BlueBird satellites are planned to offer non-continuous cellular broadband service across the United States and in select markets globally," said AST SpaceMobile, in a statement.

The initial service, which is based on premium low band spectrum, is planned to support beta test users for AT&T Inc. (T) and Verizon Communications Inc. (VZ), and will target approximately 100% nationwide coverage from space with over 5,600 coverage cells in the United States, AST SpaceMobile said. In July the company said that the U.S. Federal Communications Commission had granted an initial license for space-based operations in the U.S.

Related: These space stocks deserve attention, analysts say

On Wednesday AST SpaceMobile also announced that over $155 million in proceeds is expected from its previously-announced redemption of warrants, resulting in over $440 million in cash on a pro forma basis as of June 30, 2024.

In May, AST SpaceMobile shares surged following the announcement of a deal with Verizon.

Related: AST SpaceMobile's Verizon deal 'another vote of confidence,' UBS says

AST SpaceMobile shares are up 448.6% in 2024, outpacing the S&P 500 index's SPX gain of 15.7%.

-James Rogers

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09-05-24 0747ET

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