Why AST SpaceMobile Shares Tumbled Today

AST SpaceMobile (NASDAQ: ASTS)Shares fell 23.61 TP3T on Tuesday as the satellite designer and manufacturer announced another delay in the launch of its first commercial satellite alongside its fourth-quarter 2023 financial results.

AST SpaceMobile's First Commercial Satellite Launch Delayed Again

In its fourth-quarter financial results press release issued after the close of business last night, AST SpaceMobile revealed that its first five 700-square-foot Block 1 BlueBird commercial satellites are now expected to be shipped from its assembly plant to SpaceX's launch site between July and August 2024.The company has also announced that it will be shipping the first five 700-square-foot commercial satellites from its assembly plant to SpaceX's launch site.

Initially, SpaceX planned to launch the satellites on Falcon 9 rockets in 2023, but supply chain issues impacted the schedule. The company then pushed back the expected launch to the first quarter of 2024, then to the second quarter, and now to the third quarter of 2024-understandably, investors' patience has been tested in the process.

According to Abel Avellan, AST SpaceMobile's chief executive officer, this is due to problems with two suppliers that have delayed the integration and testing work that needs to be done before launch.

What's next for AST SpaceMobile investors?

AST SpaceMobile acknowledged the pitfalls of relying on outside suppliers; in a subsequent earnings call with analysts, Avilan noted that the company had already received a license to produce one of the components, and that it would be replacing another supplier with one of its own designs.

AST SpaceMobile has also been awarded the first 2,400 square feet of next-generation Block 2 BlueBird satellites with a December 2024 to March 2025 launch window.

But with the first generation of commercial satellites in space repeatedly delayed, it's no surprise that investors are clamoring for this space stock.

Should you invest $1,000 in AST SpaceMobile right now?

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Steve Symington does not own any of the shares listed above.The Motley Fool does not own any of the shares listed above.The Motley Fool has a disclosure policy.

Why AST SpaceMobile Shares Tumbled Today was originally published by The Motley Fool.