Shares of AST SpaceMobile, Inc. (NASDAQ: ASTS) plummeted sharply on Wednesday as the broader equity markets experienced noticeable declines. At the time of reporting, AST SpaceMobile's stock fell by 15.01%, reaching a price point of $98.38. This decrease comes against the backdrop of a broader market downturn, with the Nasdaq Composite index declining by 2.19% and the Communication Services sector retreating by 0.8% on the same day.
The timing of AST SpaceMobile's pullback follows a period of bullish sentiment that had propelled the stock to all-time highs as recently as January 28. This upward momentum was fueled by market speculation concerning a proposed initial public offering (IPO) of SpaceX, the aerospace manufacturing and space transport services company associated with Elon Musk. Reports from the Financial Times suggest that Elon Musk is evaluating a mid-June IPO for SpaceX, potentially raising capital in the range of $50 billion.
This anticipated SpaceX offering has generated optimism across the space exploration and satellite communications sectors, lifting stocks like AST SpaceMobile and Rocket Lab Corp. (NASDAQ: RKLB). Investors had responded positively to these developments, reinforcing demand and contributing to share price appreciations before the recent decline.
Analysis of AST SpaceMobile’s technical indicators reveals a nuanced picture. The stock currently trades approximately 5.9% below its 20-day simple moving average (SMA), which reflects a short-term negative trend. However, the company’s price remains substantially stronger over longer horizons, positioned 32.5% above its 100-day SMA. This suggests the existence of resilient upward momentum over the medium to long term despite recent volatility.
Over the course of the past twelve months, AST SpaceMobile has realized an impressive total gain of 330.92%. Its current trading range is closer to its 52-week highs than lows, reinforcing a robust underlying trend. Investors and analysts alike view this as indicative of firm longer-term growth potential.
Technical momentum indicators provide additional context. The Relative Strength Index (RSI) stands at 58.65, placing the stock within neutral territory — neither oversold nor overbought. The Moving Average Convergence Divergence (MACD) metric, however, remains below its signal line, signaling bearish pressure and hinting at potential near-term weakness. Consequently, investor caution is advised as these mixed signals may presage further price declines.
Looking forward, the company’s next quarterly earnings report is anticipated on March 2, 2026. Current consensus analyst estimates forecast an earnings per share (EPS) loss of 19 cents, a slight deterioration compared to a loss of 18 cents in the prior year. Revenues, conversely, are expected to rise markedly, with projections at approximately $39.03 million — a substantial increase from $1.92 million reported year-over-year.
Analyst coverage of AST SpaceMobile displays a diverse range of perspectives. The stock holds a Hold rating consensus with an average target price near $61.08. Notably, B. Riley Securities downgraded the stock to Neutral while raising their price target to $105 on January 13. In contrast, Scotiabank adjusted its rating to Sector Underperform with a price target of $45.60 as of January 7, after previously upgrading the stock to Sector Perform on November 25, 2025, maintaining the same target price.
This divergence in analyst outlooks reflects differing views on valuation and growth prospects amid a dynamic market. It is worth emphasizing that the market weakness manifested on the day of reporting impacted a wide spectrum of equities, and AST SpaceMobile's significant price volatility may partially relate to prevailing investor risk sentiment.
Overall, AST SpaceMobile, a company positioned within the emerging space communications industry, continues to grapple with the balance between high growth potential and ongoing operational losses. The stock's notable 330% rise over the past year underscores investor enthusiasm for the sector's prospects, yet short-term fluctuations reveal the challenges inherent in such innovative yet volatile industries.
Key Points:
- AST SpaceMobile shares dropped over 15% amid a broad sell-off affecting the Nasdaq and Communication Services sector.
- The company’s stock recently reached record highs influenced by news regarding a potential SpaceX IPO projected for mid-June.
- Technical indicators reveal a short-term downtrend but maintain a strong long-term growth trajectory with the stock trading well above its 100-day moving average.
- Next earnings are expected on March 2, 2026, with analysts forecasting growing revenues alongside continuing EPS losses.
Risks and Uncertainties:
- Market volatility in the communication and space sectors could continue to exert downward pressure on AST SpaceMobile’s stock price.
- The company faces ongoing operating losses despite strong revenue growth projections, which may affect investor confidence.
- Analyst ratings vary, with some downgrades reflecting uncertainty about valuation sustainability amid the recent pullback.
- Broader market sell-offs, as evidenced by declines in major indices, may obscure company-specific developments or exacerbate price fluctuations.