AST SpaceMobile, Inc. (ASTS) shares plunged 5.01% in Tuesday's trading session, as investors reacted to the company's disappointing first-quarter financial results and its plans for a significant stock offering. The satellite communications firm's stock price decline reflects growing concerns about its financial performance and potential dilution of existing shareholders.

The company reported first-quarter revenue of $718,000, falling well short of Wall Street's expectations of $4.2 million. Additionally, AST SpaceMobile posted a loss of 20 cents per share, wider than both the 16 cents loss reported a year ago and analysts' projected loss of 18 cents. These results have raised questions about the company's ability to meet its growth targets in the competitive satellite communications market.

Adding to investor concerns, AST SpaceMobile announced plans for a $500 million at-the-market (ATM) equity sales program. While the company intends to use the net proceeds for general purposes, the potential dilution effect of this offering has likely contributed to the stock's downward pressure. Despite these setbacks, it's worth noting that 7 out of 8 analysts maintain a "buy" rating on the stock, with a median price target of $38, suggesting potential long-term optimism about the company's prospects in the satellite communications sector.