AST SpaceMobile Stock Sinks. What's Dragging the Satellite Player Down to Earth. - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.# AST SpaceMobile Stock Sinks. What's Bringing the Satellite Player Down to Earth.By [Adam Clark]and [Al Root]Sha ...

Core Viewpoint - The current market trend is moving away from heavily shorted growth stocks, but there remains potential for contrarian investors to capitalize on short squeezes by identifying stocks that may rebound [1]. Group 1: Shorted Stocks Analysis - A screening process identifies stocks where short sellers might incur significant losses, indicating a potential for covering their positions [2]. - The analysis involves reviewing short interest reports from the past year to determine when shorts were added and estimating their average entry price based on prior performance [3]. Group 2: Notable Stocks with High Short Interest - Significant stocks with high short interest include: - AST SpaceMobile (ASTS) with a last close of $96.92 and a short interest percentage of 18.0%, showing a 225% increase in short interest [4]. - IREN, a data center company, with a last close of $42.67 and a short interest percentage of 12.8%, reflecting a 3929% increase [4]. - Oklo (OKLO), a nuclear energy startup, with a last close of $66.23 and a short interest percentage of 13.6%, indicating a staggering 5887% increase [4]. - Other notable mentions include: - APLD in digital assets with a last close of $36.60 and a short interest percentage of 36.9%, showing a 418% increase [4]. - SEI in investment banking with a last close of $53.73 and a short interest percentage of 27.9%, reflecting a 2348% increase [4].

Core Viewpoint - The company plans to incur $1 billion in debt to develop a space-based cellular network [1] Group 1 - The company is focusing on creating a new cellular network that operates in space [1] - The decision to take on debt indicates a significant investment strategy aimed at expanding its technological capabilities [1]

Industry Overview - Space stocks experienced a decline on heavy trading as investors reacted to multiple industry challenges, including hardware concerns and sensitivity to Elon Musk's comments regarding SpaceX and AI integration with orbital data [1] - A significant satellite player announced a large convertible note offering, which negatively impacted the entire sector [2] Company-Specific Developments AST SpaceMobile (ASTS) - AST SpaceMobile was downgraded from Buy to Neutral by B. Riley Securities, although the price target was raised to a Street-high $105, indicating a potential upside of approximately 20% from current levels [3] - Despite a recent slip, ASTS stock has gained about 15% in 2026 [3] Rocket Lab (RKLB) - Rocket Lab's stock fell by 8% on Thursday, contributing to a total loss of over 27% in the past month due to concerns over a stage-1 tank rupture during a qualification test for its Neutron rocket [4] - The company has a backlog exceeding $1 billion, but fears of delays for its first medium-lift launch have led investors to take profits after a significant rally over the past year [4] Redwire (RDW) - Redwire's shares dropped on Thursday, influenced by the overall downward trend in the space sector and heavy insider selling [5] - Zacks Investment Research downgraded Redwire from Hold to Strong Sell, further pressuring the stock, which has lost 24% over the past month [5] Firefly Aerospace (FLY) - Firefly Aerospace's shares also declined as investors reacted to industry hardware setbacks and AST's convertible note offering [6] - The stock has seen a sharp correction, falling nearly 40% over the past month after a strong start to the year [6] Planet Labs (PL) - Planet Labs signed a nine-figure deal with the Swedish Armed Forces, demonstrating the effectiveness of its satellite-as-a-service model [8] - The company is integrating its high-frequency satellite data into AXA's AI-driven disaster management tool to enhance real-time predictions and responses to natural disasters [7] Intuitive Machines (LUNR) - Intuitive Machines' stock pulled back after a period of strength, following the $800 million acquisition of Lanteris Space Systems and securing contracts with the Air Force Research Laboratory [9] - Traders may be locking in gains ahead of the high-risk IM-2 lunar mission scheduled for later this year, as the stock has nearly doubled in the past year [9]

Core Insights - AST SpaceMobile, Inc. (ASTS) has successfully launched its next-generation BlueBird 6 satellite, which provides high-speed mobile Internet directly to smartphones without additional devices [1][7] Group 1: Satellite Features and Capabilities - BlueBird 6 features the largest commercial communications array in Low Earth Orbit (LEO) at 2,400 square feet, offering peak speeds of up to 120 Mbps and 10 times the capacity of previous satellites [2] - The satellite provides full 4G and 5G services, including voice, data, and video, ensuring strong signals and reliable coverage through advanced antenna design and precise beamforming [2] Group 2: Future Plans and Growth Strategy - AST SpaceMobile plans to launch up to 60 satellites by 2026, with the next-generation BlueBird 7 satellite scheduled for launch in late February 2026 [3] - The company aims to expand its user base, partner with more mobile operators, and increase revenues, positioning itself for long-term growth in space-based Internet [3] Group 3: Competitive Landscape - AST SpaceMobile faces competition from Globalstar, Inc. (GSAT) and Viasat, Inc. (VSAT), both of which are enhancing their satellite networks and ground systems to improve global connectivity [4][5] - Globalstar is expanding its ground network and has partnered with SpaceX for satellite launches, while Viasat is offering advanced antennas and telemetry services to support satellite operations [4][5] Group 4: Financial Performance and Valuation - AST SpaceMobile shares have increased by 222.5% over the past year, significantly outperforming the industry growth of 39.5% [6] - The company currently trades at a forward price-to-sales ratio of 133.77, which is considerably higher than the industry average [8] Group 5: Earnings Estimates - The Zacks Consensus Estimate for AST SpaceMobile's loss per share for 2025 has decreased by 0.9% to $1.07, while the estimate for 2026 has declined by 21.6% to a loss of $0.90 over the past 60 days [9]

Core Viewpoint - AST SpaceMobile stock experienced a decline on Thursday after having more than tripled in value over the past 12 months [1] Company Summary - AST SpaceMobile's stock performance indicates significant volatility, with a notable increase of over 200% in the last year, suggesting strong investor interest and market speculation [1]

Core Viewpoint - AST SpaceMobile, Inc. has announced a private offering of $1.0 billion in convertible senior notes with a 2.250 percent interest rate, maturing in 2036, indicating a strategic move to raise capital for various corporate initiatives [1][2]. Group 1 - The initial conversion price for the notes is set at approximately $116.30 per share of AST SpaceMobile's Class A common stock [1]. - Proceeds from the offering will be utilized for general corporate purposes, including accelerating the deployment of controlled spectrum bands globally and enhancing investment in government space opportunities in the U.S. [2]. - The company aims to reduce higher interest debt and pursue opportunistic investments to enhance its SpaceMobile Service and capabilities [2]. Group 2 - The settlement of the notes sale to initial purchasers is expected to occur on February 17, 2026 [3]. - In pre-market trading, AST SpaceMobile's stock is down $88.00, reflecting a 9.20 percent decrease on the Nasdaq [3].

Core Viewpoint - AST SpaceMobile Inc. announced a $1 billion convertible senior notes offering, leading to a decline in its stock price during premarket trading [1]. Group 1: Convertible Notes Offering - The company priced $1.0 billion aggregate principal amount of 2.250% convertible senior notes due 2036 in a private offering to qualified institutional buyers [2]. - The initial conversion price is approximately $116.30 per share, representing a premium of roughly 20% to the last reported sale price of $96.92 per share [3]. - An option for initial purchasers to buy up to an additional $150 million aggregate principal amount of notes is available until February 20 [3]. Group 2: Use of Proceeds - The estimated net proceeds are approximately $983.7 million, or about $1,131.4 million if the purchasers' option is fully exercised [4]. - Proceeds will be used for general corporate purposes, including accelerating deployment of controlled spectrum bands globally, monetizing proprietary technology for AI-related commercial opportunities, enhancing investment in U.S. government space opportunities, reducing higher-interest debt, and pursuing opportunistic investments [5]. Group 3: Concurrent Transactions - The company announced registered direct offerings totaling 6,337,964 shares of Class A common stock, scheduled to settle on February 20 [6]. - AST SpaceMobile is also repurchasing approximately $46.5 million of existing 4.25% convertible notes and $250.0 million of existing 2.375% convertible notes [6]. - During premarket trading, AST SpaceMobile shares were down 8.89% at $88.30 [6].

Group 1 - The core viewpoint of the article focuses on the market analysis of Ast Spacemobile Inc., highlighting its potential in the satellite communication industry [1] Group 2 - The article discusses the growth prospects of the satellite communication market, driven by increasing demand for connectivity in remote areas [1] - It mentions that Ast Spacemobile Inc. aims to provide direct-to-smartphone satellite services, which could revolutionize mobile communication [1] - The analysis includes financial metrics, indicating that the company has a projected revenue growth rate of 25% over the next five years [1]

MIDLAND, Texas--(BUSINESS WIRE)--AST SpaceMobile, Inc. ("AST SpaceMobile†) (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones, designed for both commercial and government applications, today announced the pricing of cash repurchases (the "Repurchases†) of approximately $46.5 million aggregate principal amount of its 4.25% convertible senior notes due 2032 (the "4.25% Convertible Notes†) and $250.0 million of. ...