AST SpaceMobile (ASTS) Stock Rises On Key Defense Tech Milestone

Shares of AST SpaceMobile Inc ASTS are rising Thursday morning after facing selling pressure on Wednesday. The rally follows the company’s announcement of a successful demonstration of its space-based cellular broadband network for military applications.

What To Know: In a collaboration with Fairwinds Technologies and U.S. defense representatives, AST SpaceMobile showcased its Non-Terrestrial Network capabilities near its Hawaii gateway. The test delivered high-throughput data, voice and video to unmodified smartphones, highlighting its potential for secure tactical communications.

The milestone is the first in a series of planned demonstrations for the Defense Innovation Unit, aimed at enabling next-generation capabilities for national security.

The positive updates comes after the stock slid on Wednesday after the company announced a registered direct offering of 9.45 million shares at $53.22 each. The offering is part of a larger transaction to repurchase $225 million of its convertible notes, a move intended to reduce its outstanding debt and interest obligations.

This week's volatility follows a significant run-up in the stock over the past month, which prompted a Scotiabank downgrade earlier in the week. However, Thursday's successful defense demonstration appears to have renewed investor confidence.

ASTS Price Action: According to data from Benzinga Pro, AST SpaceMobile stock is trading higher by 1.14% to $50.54 Thursday morning. Shares climbed above $53 in early trading before pulling back. The stock has a 52-week high of $54.05 and a 52-week low of $10.17.

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How To Buy ASTS Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in AST SpaceMobile case, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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