AST SpaceMobile (ASTS) shares suffered a steep decline on Thursday, driven by a dual blow of a massive $1 billion convertible debt offering and a setback in its satellite launch timeline. The stock tumbled as much as 18% intraday, pushing its relative strength index (RSI) into the low 30s, a level often seen as oversold.
The company priced a private offering of $1 billion in 1.625% convertible senior notes due 2034, with an initial conversion price of approximately $79.57 per share—a 20% premium to the previous close. Despite capped call transactions designed to limit dilution, investors reacted strongly to the potential for significant future equity dilution, dragging shares lower.
Adding to the sell-off, AST SpaceMobile disclosed in an SEC filing that it now expects to launch its next block of around 45 BlueBird satellites in early 2027, a delay from its prior target of later this year. The company cited launch-provider capacity issues, notably setbacks with Blue Origin’s New Glenn rocket, as the primary bottleneck. This postponement delays the company’s path to meaningful revenue and opens a wider window for competitors like SpaceX’s Starlink to capture market share.
Broader analyst coverage remains mixed. Piper Sandler initiated AST SpaceMobile with an Overweight rating and a $100 price target, citing a clearer route to EBITDA growth. However, the consensus analyst rating sits at Hold, with an average price target near $88. The company’s current price-to-sales multiple of around 377x underscores its speculative valuation, even as some bulls still see 50% upside potential.
