AST SpaceMobile Raises $1 Billion in Convertible Bonds, Stock Down Nearly 60% From Highs

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AST SpaceMobile has raised $1 billion through a convertible bond offering to fund its direct-to-device satellite internet plans, sending its stock down nearly 60% from its peak of over $100 a share to around $55. The company, which aims to beam high-speed internet directly to smartphones without a dish, has nine operational satellites in orbit and is manufacturing over 90 more in Texas. It faces significant cash burn, with negative free cash flow of $1.37 billion over the last 12 months, and growing competition from SpaceX's Starlink, which is also developing direct mobile connectivity. Despite the potential market opportunity, the author argues the stock remains overvalued at a $21 billion market cap given less than $100 million in trailing revenue and ongoing dilution risks.

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Company raised $1B in convertible bonds, causing dilution and stock drop from highs.

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