Why AST SpaceMobile Stock Shot Higher at the Open Today
AST SpaceMobile (NASDAQ: ASTS) is being added to two indexes, an event that will likely lead to more mutual fund buying. The news led to a 6% move higher for AST shares at the market open -- but the stock was unable to sustain those gains.
AST SpaceMobile is in the early stages of an ambitious and risky plan to connect run-of-the-mill smartphones via satellites. Today, only special-purpose phones can communicate via satellites, but in theory, space-bound connections would allow better roaming in hard-to-reach areas and enable truly international service.
The company is still only in the testing phase and faces long and expensive development and deployment cycles ahead. But AST has made progress in its effort: In April, it placed its first call from one cellphone to another via a test satellite.
Source Fool.com
