Why AST SpaceMobile Stock Soared 16% Today
Direct-to-cell satellite communications provider AST SpaceMobile (NASDAQ: ASTS) ran up 16% through 10:05 a.m. ET Thursday after announcing, last night after close of trading, that the U.S. Space Development Agency (SDA, an arm of the Space Force) has chosen AST to participate in its new Hybrid Acquisition for Proliferated Low Earth Orbit (HALO) program.
The initial award value is reported to be small -- just $20,000, according to SpaceNews. To win more money, AST must "compete for upcoming prototype demonstration projects" under HALO -- and is not guaranteed to win any contracts at all. (Indeed, with 18 other companies joining HALO, there will be plenty of competition.) Still, the news is good for AST as it makes the company officially a Space Force "prime contractor" that can be awarded "specific prototype orders."
The subject matter of the contracts that AST might compete for was not stated outright, but AST Chief Commercial Officer Chris Ivory dropped at least a hint, noting that AST's "space-based cellular broadband technology has the potential to enhance SDA's stated mission at the transport, tracking, and ground layers in a secure and reliable way."
Source Fool.com
