Why AST SpaceMobile Stock Skyrocketed This Week
Yahoo Finance ·
AST SpaceMobile ( ASTS 1.17% ) stock closed out this shortened trading week with massive gains. The company's share price gained 31.2% across the stretch. The S&P 500 gained 1.8% across the period, and the Nasdaq Composite rose 2.1%. In addition to bullish momentum for the broader market, AST's valuation got a huge boost from news that another player in the space industry was making a big acquisition. Rocket Lab is on track to acquire Iridium Communications in an $8 billion deal, and investors see that as a bullish sign for AST. On June 29, Rocket Lab published a press release announcing it had entered into a deal to acquire Iridium at a valuation of roughly $8 billion. The half-cash, half-stock deal will see Rocket Lab acquire all outstanding shares of Iridium at a price of $54 per share. Like AST, Iridium is a provider of satellite-based communications. Crucially, the deal will allow Rocket Lab to acquire Iridium's spectrum resources and satellite-constellation infrastructure -- a move that should significantly accelerate its push into the communications space. The development could be a promising indicator for AST.
DYAX Investor Sentiment
Bullish (Long) 42% · Bearish (Short) 58%
466 participants
Related News
- What the Buffett Market Valuation Indicator at Record Highs Means for Investors
- SpaceX, Alphabet, and SK Hynix Are Sending a Big Signal to the Market, and No One Is Talking About It
- After Surging 814% in 1 Year, Is a Stock Split Inevitable for Micron?
- Where Will Intel Stock Be in 5 Years?
- Elon Musk Says Optimus Production Will Be 'Extremely Slow' in the Beginning: 'This is Not Like Making a Car'
- Wall Street Is Buzzing About Alphabet Joining the Dow. Income Investors Should Be Looking at This Stock Instead.