VZ - AST SpaceMobile Skyrockets Almost 100% After Verizon Deal
2024-05-31 15:34:03 ET
Satellite cellphones may have taken a big step forward this week after Verizon (NYSE: VZ) announced an expanded partnership with AST SpaceMobile (NASDAQ: ASTS) . According to data provided by S&P Global Market Intelligence , shares of AST SpaceMobile jumped as much as 94.1% this week and are trading 79.1% higher at 3 p.m. ET.
The agreement between the two companies includes usage of the 850 million hertz spectrum that aims to give 100% coverage to the continental United States. Verizon will also invest $100 million in the company, $65 million of which will be commercial prepayments, and the remaining $35 million will be for convertible notes.
This doesn't get the company anywhere near free-cash-flow positive, but it's a step in the right direction.
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AST SpaceMobile Skyrockets Almost 100% After Verizon Deal