TSLA - Why AST SpaceMobile's Q1 2024 Results Just Squeezed Short-Sellers

2024-05-16 14:58:15 ET

Summary

• AST SpaceMobile, Inc. stock fell to an all-time low in March but reversed sentiment today after announcing a partnership with AT&T to provide a space-based broadband network.
• The agreement extends until 2030 and will give customers an alternative to Elon Musk's Starlink.
• AST SpaceMobile's first-quarter earnings were negligible, but the company has healthy liquidity and expects operating expenses to fall in the coming quarters.
• Discussion of risks include stock dilution and traders taking profits.

After I last wrote an earnings preview on AST SpaceMobile, Inc.’s ( ASTS ) fourth-quarter earnings report in March, the stock fell to around $2.00. Impatient investors capitulated, sending the stock to an all-time low. The company reported deeper losses and satellite delays ....

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