AST SpaceMobile stock surges on new government contract

Published 26/02/2025, 17:18
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Investing.com -- AST SpaceMobile Inc. (NASDAQ: ASTS) shares jumped 14% today following the announcement of a new contract with the United States Space Development Agency (SDA) valued at $43 million. The contract, which is in support of the SDA through a prime contractor, highlights the company’s continued collaboration with the U.S. Space Force and reinforces its role in developing the Proliferated Warfighter Space Architecture.

The rise in stock price can be attributed to the market’s positive response to the new contract, which comes on the heels of successful testing with the company’s BlueWalker-3 satellite. AST SpaceMobile’s next-generation Block 2 BlueBird satellites are set to feature the largest commercial phased array antennas in low Earth orbit, covering an impressive 2,400 square feet. This technological advancement is expected to provide advanced connectivity and performance for specialized government applications.

Chris Ivory, Chief Commercial Officer and Head of Government Business at AST SpaceMobile, commented on the significance of the contract, stating, “This second contract supporting the SDA underscores the confidence in AST SpaceMobile’s innovative technology and its potential to support critical government missions. We are deploying groundbreaking technology to create robust and resilient communications solutions and to enable new use cases for the U.S. government."

The company’s technology, which is protected by 3,500 patent and patent-pending claims, offers dual-use advantages for both government and commercial customers. Its large, phased-array antennas and innovative architecture are designed to provide robust, resilient, and scalable solutions that can adapt to evolving mission needs.

AST SpaceMobile’s recent contract win serves as a testament to its growing presence in the space-based cellular broadband network sector and its ability to secure significant contracts for government use. With the company’s innovative approach to space technology and its strategic partnerships, investors are showing increased confidence in its growth trajectory and future prospects.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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