AST SpaceMobile, Inc. (ASTS) saw its shares plummet by 7.59% during intraday trading on Wednesday following a rating downgrade by Scotiabank. The brokerage firm cut its rating on the stock from "Sector Perform" to "Sector Underperform," citing significant concerns about the company's operational timeline and competitive pressures.

Scotiabank highlighted long delays in AST SpaceMobile's satellite deployment and the rapid growth of rival Starlink as key risks. The firm also noted that AST SpaceMobile still lacks retail customers and may not achieve continuous service until late 2026 or 2027, requiring around 50 satellites in orbit. Additional concerns include slow uptake in the U.S. and Japan, low average revenue per user (ARPU), and high capital expenditures, which could delay meaningful free cash flow until 2028–29.