Why AST SpaceMobile, Inc. (ASTS) Crashed on Monday

We recently compiled a list of the 10 Firms Suffer Steep Downfall on Monday. In this article, we are going to take a look at where AST SpaceMobile, Inc. (NASDAQ:ASTS) stands against the other stocks.

Ten companies kicked off Monday’s trading in a bloodbath, mirroring the broader market pessimism, with valuations slashed by double digits mostly due to investor caution brought about by key economic uncertainties.

Wall Street’s main indices all fell in the red, with the tech-heavy Nasdaq recording the steepest downfall with 4 percent.

The S&P 500 declined by 2.7 percent, while the Dow Jones dropped by 2.08 percent.

We have identified the 10 worst-performing companies on Monday and detailed the reasons behind their drop.

To come up with the list, we considered only the stocks with $2 billion in market capitalization and $5 million in trading volume.

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

AST SpaceMobile, Inc. (NASDAQ:ASTS)

AST SpaceMobile, Inc. (NASDAQ:ASTS) dropped its share prices by 12.75 percent on Monday to close at $29.14 apiece as investor sentiment was dampened by an overall market pessimism.

On Monday, New Zealand-based telecommunications provider 2degrees announced that it partnered with AST SpaceMobile, Inc. (NASDAQ:ASTS) for the development and extension of 4G LTE and 5G cellular coverage across New Zealand without the need for any specialized software or device support.

However, the news was not enough to propel AST SpaceMobile, Inc. (NASDAQ:ASTS)’s shares higher, with prices after market hours still hovering in the red territory.

According to 2degrees, it will invest in the development of its own dedicated ground station in Aotearoa.

According to AST SpaceMobile, Inc. (NASDAQ:ASTS) Chief Commercial Officer Chris Ivory, New Zealand’s diverse geography presents unique connectivity challenges, making it well-suited for space-based cellular broadband coverage.

“We look forward to collaborating with 2degrees to ensure people across the country have access to reliable broadband mobile services, even when they are outside traditional coverage areas,” he said.

Overall ASTS ranks 9th on our list of Monday’s worst performing stocks. While we acknowledge the potential of ASTS as an investment, our conviction lies in the belief that some 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 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.