Why AST SpaceMobile Stock Tumbled 20% This Week

AST SpaceMobile (NASDAQ: ASTS) wants to connect the world. The company plans to be the leader in using satellite technology to bring broadband directly to cellphone users across the globe. It's been making steady progress on that goal with the launch of its first satellites last year.

But AST shares have been plummeting this week. As of Friday morning, the stock has tumbled by 22%, according to data provided by S&P Global Market Intelligence. Before digging into why that happened, investors should take a step back and note that shares are still 25% higher for the year.

AST stock rose earlier this year after it secured new funding, announced a new government contract supporting the U.S. Space Force, received Federal Communications Commission (FCC) authorization to test its service in the U.S., and signed a new agreement with Vodafone to serve European markets.

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Source Fool.com