AST SpaceMobile shares rose almost 5% on Wednesday after SpaceX successfully launched three of its BlueBird satellites into orbit. This achievement helps make up for the setback from a failed Blue Origin launch in April, which had raised concerns about the company’s schedule. Here’s what this successful launch means for AST SpaceMobile’s commercial plans and what still needs to happen before investors can feel confident again.
With these three satellites, AST SpaceMobile now has nine in orbit. The company needs at least 45 working satellites to start commercial service in northern regions, a goal set for the end of the year. Investors are still waiting to hear if the new satellites, which are larger than most in the industry, have unfolded and are working properly. This check could take a few weeks.
Chief executive Abel Avellan said the next three BlueBird satellites are getting ready to ship for the next launch. He also shared that BlueBird satellites up to number 37 are already being built and assembled, showing confidence in the company’s production process.
The successful launch is a reminder that SpaceX is the commercial rocket provider of choice, even for companies it directly competes against. SpaceX’s Starlink Mobile is targeting a broadband-quality mobile phone connectivity service similar to what AST SpaceMobile is building, with a commercial launch expected by the end of next year. Despite being the launch provider for AST SpaceMobile, SpaceX represents its most formidable long-term competitive threat.
SpaceX shares dropped more than 4% on Wednesday, after finishing Tuesday as the world’s fifth most valuable company. The stock had climbed almost 50% from its $135 IPO price. Meanwhile, AST SpaceMobile shares are down 11% since last Thursday’s close.
