Today, during trading hours, shares of AST SpaceMobile (ASTS) are experiencing a decline, despite having made a significant recovery from its session low. As of 2 p.m. Eastern Time, the stock price had dropped by 1.9%, but it had dipped as far as 9.6% earlier in the day.
Today’s trading started off with a noticeable downward trend across the broader market, particularly affecting tech companies. However, as the day has unfolded, the decline seems to be easing. The reason for this overall dip can be attributed to the valuation challenges faced by technology stocks that heavily rely on growth, and additional factors affecting AST stock specifically. These factors include the disappointing earnings report from Lockheed Martin and negative analyst sentiment surrounding BlackSky Technology, another player in the space industry.
Lockheed’s Q2 results are weighing on AST stock
This morning, Lockheed Martin unveiled its second-quarter financial report prior to market opening, and the market has shown a significant bearish response to these figures. Although the company surpassed the average analyst prediction by $0.82 per share in terms of non-GAAP (adjusted) earnings per share at $7.29, the reported sales of $18.16 billion for the quarter fell short of Wall Street’s projection by $380 million. Despite a slight 0.2% increase in overall sales year over year due to gains within their space division, the results didn’t meet expectations – which seems to have negatively impacted AST’s stock valuation as well.
What’s next for AST?
Besides Lockheed’s Q2 earnings report, it appears that recent updates about BlackSky Technology might be contributing to the stumbles in valuation for soaring space stocks. This morning, Clear Street changed its stock rating from buy to hold, while Canaccord reduced its one-year price target from $28 per share to $27 per share, still maintaining a buy rating. The coverage seems to have sparked worries about valuations within the wider space sector. However, some late-day news seemed to aid in a recovery of valuation for AST.
As per today’s report from Reuters, the Trump administration is broadening its search for collaborators for the “Golden Dome” missile-defense system beyond SpaceX led by CEO Elon Musk. Already, AST is suspected to be a technical partner for the Golden Dome project. It’s plausible that upcoming announcements about this defense endeavor could trigger significant increases in AST’s stock value.
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2025-07-22 22:39