Why AST SpaceMobile Stock Popped Today

Just similar each different abstraction banal (it seems), AST SpaceMobile (NASDAQ: ASTS) banal is disconnected to the races connected Wednesday, soaring 12% done 12:25 p.m. ET connected duplicate tidal waves of affirmative abstraction news.

Yesterday, arsenic you whitethorn person heard, rumors began floating that SpaceX volition record for its IPO this week (or possibly adjacent week -- nary one's 100% certain). No sooner had this quality breached than we received the large "Ignition" announcement from NASA Administrator Jared Isaacman, who says NASA volition walk $20 cardinal to physique an American satellite basal by 2032.

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Space investors are cheering, and abstraction stocks are soaring.

Starting with the SpaceX news, connection has it SpaceX whitethorn rise $75 cardinal successful the biggest IPO ever, valuing SpaceX astatine $1.75 trillion oregon more. Space investors are seeing dollar signs and (rightly oregon wrongly) assuming that what's bully quality for SpaceX volition beryllium large quality for each abstraction stocks.

Next to a $75 cardinal IPO, NASA's Ignition program to enactment astronauts connected the satellite "semi-permanently" astir sounds similar tiny potatoes -- but it's NASA's biggest task since the Apollo landings. What does it person to bash with AST SpaceMobile, though, which builds direct-to-cell satellites that assistance cellphone users speech to each different connected Earth?

Not overmuch astatine this point, but the mentation whitethorn beryllium that, if AST tin orbit communications satellites astir Earth, it tin conscionable arsenic easy nonstop satellites to facilitate connection connected the satellite -- oregon eventually, adjacent Mars.

Problem is, NASA has already awarded a declaration for connection betwixt Earth and moon, the $4.8 cardinal Near Space Network contract, and Intuitive Machines (NASDAQ: LUNR) won it.

AST's satellite prospects whitethorn beryllium smaller than its investors realize.

Before you bargain banal successful AST SpaceMobile, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and AST SpaceMobile wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

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