AST SpaceMobile, Inc. experienced a significant pre-market decline of 5.22% on Wednesday, as the stock continued to face pressure following recent developments in the space industry.
The decline comes in the wake of Blue Origin's New Glenn rocket explosion during a test late last month, which created concerns about potential delays to AST SpaceMobile's satellite constellation deployment. The company has contracted with Blue Origin to help build out its satellite network as it seeks to compete with SpaceX's Starlink business.
Analysts have responded to the incident with caution, with Deutsche Bank lowering its rating on AST's stock to hold from buy and cutting its price target. William Blair analyst Louie DiPalma noted that the Blue Origin setback would likely delay the full deployment of AST's satellite constellation, which the company needs to launch dozens of satellites to orbit to begin providing commercial services.
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