Why AST SpaceMobile, Inc. (ASTS) Went Up on Wednesday

We recently compiled a list of the 10 Stocks Lead Wednesday’s Charge, Mirror Broader Gains. In this article, we are going to take a look at where AST SpaceMobile, Inc. (NASDAQ:ASTS) stands against the other stocks.

US shares stayed firmer on Wednesday, with all major indices finally eking out gains as President Donald Trump softened on trade restrictions for three large automakers, reviving hopes that the trade war may not be as bad as it seemed.

The Dow Jones grew 1.14 percent, the S&P 500 rose by 1.12 percent, while the tech-heavy Nasdaq jumped 1.46 percent.

On Wednesday, the White House granted three large automakers a one-month exemption from tariffs after a call with the president, sending their share prices higher during the session.

Ten firms also mirrored the broader optimism, posting strong gains during the day. In this article, we have listed the 10 names and detailed the reasons behind their performance.

To come up with Wednesday’s top gainers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

An aerial view of a communications satellite in orbit, beaming its signal down to Earth.

AST SpaceMobile, Inc. (NASDAQ:ASTS)

AST SpaceMobile, Inc. (NASDAQ:ASTS)jumped by 18.14 percent on Wednesday to finish at $33.8 apiece as investors continued to gobble up shares following recently bagged deals and beating analysts’ earnings estimates.

The company, which reported its earnings results on Monday, beat earnings per share estimates by 6 cents, ending at -$0.12 versus a -$0.18 estimate.

AST SpaceMobile, Inc. (NASDAQ:ASTS), however, posted a 244-percent higher net loss in full-year 2024 at $300 million versus the $87 million registered in 2023.

Net loss in the fourth quarter alone also grew by 12 percent to $35.8 million from $31.9 million in the same period a year earlier.

Among its significant business updates, AST SpaceMobile, Inc. (NASDAQ:ASTS) said it officially clinched a definitive commercial agreement with Vodafone through 2034 to establish a framework to offer SpaceMobile service in its 20+ countries across Europe and Africa.

It also secured a contract with the US Space Development Agency, which is expected to rake in $43 million in revenues.

Overall ASTS ranks 1st on our list of Wednesday’s top gainers. While we acknowledge the potential of ASTS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ASTS but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.