AST SpaceMobile Secures $43 Million Contract, Stock Rises

AST SpaceMobile, Inc. (NASDAQ: ASTS) saw a notable increase in its stock price on Wednesday following the announcement of a $43 million contract awarded by the U.S. Space Development Agency (SDA) through its prime contractor.

Recent Developments: This contract comes on the heels of successful testing of AST's BlueWalker-3 satellite, which was conducted under a previous agreement that was revealed in February 2024. The new agreement specifies that AST SpaceMobile will leverage its Block 2 BlueBird satellites in support of the project.

The SDA operates under the auspices of the U.S. Space Force, with a mission to expedite the integration of space-based technologies that enhance military capabilities.

Chris Ivory, the Chief Commercial Officer and Head of Government Business at AST SpaceMobile, remarked, "This second contract supporting the SDA emphasizes the trust in AST SpaceMobile's cutting-edge technology, as well as its ability to assist with essential government operations. Our innovative solutions aim to establish strong and reliable communication systems, facilitating new applications for the U.S. government."

Looking Ahead: Investors are keenly anticipating AST's forthcoming fiscal-year fourth-quarter earnings report, which is set to be released on Monday after market hours. Analysts predict the company will report a loss of 17 cents per share alongside projected revenues of $19.20 million, as per data obtained from Benzinga Pro.

Stock Performance: At the time of writing, AST SpaceMobile shares have climbed by 7.83%, now trading at $28.21, as reported by market data sources.

Image: via AST SpaceMobile, Inc.

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