SpaceX stock fell on Tuesday, putting an end to a three-day winning streak that had briefly pushed the shares back above their IPO offer price.
The pullback came as investors digested a mixed earnings report from AST SpaceMobile, a key competitor in the Direct-to-Cell space broadband market.
AST SpaceMobile reported revenue of $31.5 million for the period, falling short of the $35.18 million consensus estimate tracked by FactSet.
The company also posted an adjusted loss per share of $0.77, a significant miss compared to analyst expectations of a $0.26 loss.
Despite the weaker-than-expected results, AST SpaceMobile maintained its forward guidance, signaling management confidence in the trajectory of its business.
That guidance appeared sufficient for Cantor, which responded by raising its price target on AST SpaceMobile stock following the earnings release.
AST SpaceMobile is regarded as one of the most direct challengers to SpaceX’s Starlink service in the fast-growing Direct-to-Cell broadband segment.
The D2C space broadband market has attracted significant investor attention as providers race to deliver satellite-based connectivity directly to standard mobile devices.
SpaceX’s Starlink has established an early lead in the sector, but rivals like AST SpaceMobile are aggressively competing for market share and strategic partnerships.
The earnings miss from AST SpaceMobile added another layer of pressure on SpaceX shares, which had only recently climbed back above their IPO offer price after a stretch of weakness.
Investors appear cautious about valuations across the satellite broadband sector as competition intensifies and several players continue to post substantial operating losses.
The trading action on Tuesday underscored how closely linked the fates of SpaceX and its rivals have become in the eyes of the market.
