Stock Market Today, July 16: AST SpaceMobile Falls on $1B Convertible Notes Offering
Satellite broadband provider may be seeing SpaceX hot on its heels.
Overview
AST SpaceMobile (NASDAQ:ASTS), a space-based cellular broadband provider, closed at $55.01, down 17.04%. The stock fell after a $1 billion convertible notes offering, as investors are watching the progress of satellite deployment and future competition.
Trading volume reached 52.2 million shares, coming in about 13% above its three-month average of 22.7 million shares. AST SpaceMobile IPO'd in 2019 and has grown 463% since going public.
S&P 500 (SNPINDEX:^GSPC) fell 0.51% to 7,534, and the Nasdaq Composite (NASDAQINDEX:^IXIC) dropped 1.47% to 25,882. Among satellite telecommunications and direct-to-device connectivity peers, Globalstar (NASDAQ:GSAT) fell 1.24% to $79.53, while Iridium Communications (NASDAQ:IRDM) declined 4.23% to $46.61.
Details
AST SpaceMobile continues to expand its fleet to build a space-based cellular broadband network. It takes capital to build and launch those satellites, and the company just announced a $1 billion convertible debt offering to help fund its growth.
Source
Originally published at www.fool.com.