SpaceX low-band spectrum buy knocks AST SpaceMobile more than 14%
AST SpaceMobile's stock fell more than 14% in Friday morning trading after news broke that SpaceX is buying up a nationwide low-band spectrum portfolio: basically, the airwaves needed for better satellite-to-phone connections.
This move closes off one potential source of additional low-band spectrum AST SpaceMobile had also pursued, though the deal still needs Federal Communications Commission approval.
Ligado deals unaffected, investor reaction mixed
AST's current deals with Ligado Networks (for mid-band spectrum in the US and Canada) are not affected, so its existing services keep running smoothly.
Still, missing out on this new spectrum could slow down their expansion plans.
The news also shook up other space stocks: Rocket Lab and Planet Labs slipped a bit, while Procure Space ETF actually ticked up slightly, so investors are definitely paying attention to who controls these valuable airwaves.