Why AST SpaceMobile (ASTS) Crashed on Wednesday?

We recently published a list of These 10 Stocks Were Wednesday’s Worst Performers. In this article, we are going to take a look at where AST SpaceMobile, Inc. (NASDAQ:ASTS) stands among Wednesday’s worst-performing stocks.

The stock market declined on Wednesday, with all major indices finishing in the red, driven by losses in technology stocks.

The Nasdaq dropped 0.51%, while the S&P 500 and Dow Jones fell 0.47% and 0.31%, respectively.

Ten companies, mostly from the technology sector, led the downturn.  In this article, we will highlight the biggest decliners and examine the factors driving their performance.

To identify Wednesday’s biggest losers, we focused on stocks with a market capitalization of at least $2 billion and a daily trading volume of over $5 million.

An aerial view of a communications satellite in orbit, beaming its signal down to Earth.

AST SpaceMobile, Inc. (NASDAQ:ASTS)

Shares of AST SpaceMobile, Inc. (NASDAQ:ASTS) retreated by 12.02 percent on Wednesday to finish at $17.72 apiece following news that technology giants T-Mobile and Apple Inc. chose SpaceX as their partner in integrating support for the Starlink network into the latest software.

The unexpected partnership with SpaceX’s Starlink network signals a potential shift away from reliance on traditional satellite communication providers.

According to sources privy to the matter, Apple has been quietly testing the Starlink service on its iPhones and updated its software earlier this week to support the technology. The development is particularly surprising, as T-Mobile had previously announced that Starlink connectivity would be exclusive to Samsung devices, including models like the Z Fold and S24.

Meanwhile, AST SpaceMobile (NASDAQ:ASTS) is still trying to get its own direct-to-cell satellite service up and running. The company launched its first five operational BlueBird DTC satellites last summer but has yet to announce beta service with them.

Overall, ASTS ranks 3rd on our list of Wednesday’s worst-performing stocks. While we acknowledge the potential of ASTS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ASTS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.