Shares of AST SpaceMobile soared over 70% on Wednesday, reaching their highest level since November 2022, following the announcement of a new partnership with Verizon Communications. The satellite communication company’s stock has more than quadrupled since May, with a 50% increase for the year.
The partnership with Verizon will enable AST SpaceMobile to target complete coverage of the continental United States using premium 850 MHz cellular spectrum from space. Verizon has committed $100 million to this collaboration.
Earlier in the month, AST SpaceMobile had announced a similar deal with AT&T to provide space-based broadband network directly to cell phones.
Commenting on the partnership, Abel Avellan, founder, chairman, and CEO of AST SpaceMobile, stated, “This partnership will enhance cellular connectivity in the United States, essentially eliminating dead zones and empowering remote areas of the country with space-based connectivity.”
The company has also received financial backing from AT&T, Google, and Vodafone Group this year.
AST SpaceMobile’s shares closed at $9.02, up 69.2%, with a session high of $9.35. Verizon’s shares, however, finished down 0.7% on Wednesday. Trading volume for AST SpaceMobile spiked to more than five times the 10-day moving average volume, according to LSEG data.
The stock also trended on the retail-investor focused social-media forum Stocktwits, with message volumes surging and scoring “extremely high” on the platform.
