AST SpaceMobile Inc. (NASDAQ: ASTS) shares are trading lower on Friday, with the stock down 12.77% to $49.66 at the time of publication. The decline follows an announcement from SpaceX regarding the acquisition of spectrum assets.
SpaceX agreed to acquire up to 14 megahertz (MHz) of spectrum in the 800 MHz band from Grain Management, a deal subject to regulatory approval. SpaceX Chief Operating Officer Gwynne Shotwell stated the company plans to target existing wireless carrier customers with this low-band spectrum. Elon Musk described the transaction as an “earthquake.”
The move is viewed as intensifying competition for AST SpaceMobile, which relies on partnerships with wireless carriers to deliver satellite connectivity to smartphones. The FCC previously approved SpaceX’s direct-to-device satellite constellation, and a shared venture was announced by AT&T, T-Mobile, and Verizon on October 2.
Major U.S. wireless carriers are also trading lower in premarket trading following the disclosure. From a technical perspective, ASTS is trading 9% below its 20-day simple moving average of $60.07 and 13.2% below its 50-day moving average of $63.00. The stock is currently trading near its 52-week low of $49.31.
