AST SpaceMobile shares surged by over 70% on Wednesday, reaching their highest level since November 2022, following the announcement of a new partnership with Verizon Communications (VZ.N) for direct-to-cellular connectivity.
The stock has witnessed a remarkable increase, more than quadrupling since the beginning of May and rising approximately 50% for the year.
The collaboration, revealed early Wednesday, aims to achieve 100% coverage of the continental United States using premium 850 MHz cellular spectrum directly from space. Verizon has committed $100 million to support this endeavor.
Earlier this month, AST SpaceMobile also announced a similar agreement with AT&T (T.N) to provide space-based broadband network services directly to cell phones.
AST SpaceMobile’s shares closed at $9.02, up 69.2% for the day, reaching a session high of $9.35. Meanwhile, Verizon’s shares saw a modest decline of 0.7% on Wednesday.
Trading volume for AST SpaceMobile experienced a significant spike, surpassing five times the 10-day moving average volume, as reported by LSEG data.
The company also dominated the trending charts on Stocktwits, a retail-investor focused social-media platform, with message volumes surging and receiving “extremely high” engagement.
According to Abel Avellan, founder, chairman, and CEO of AST SpaceMobile, this partnership will revolutionize cellular connectivity in the United States, eliminating dead zones and empowering remote areas with space-based connectivity.
