AST SpaceMobile, Inc. (ASTS) experienced a sharp intraday decline of 17.30% on Friday, marking a significant reversal for the satellite communications stock.

The selloff was triggered by a dual blow to the space sector. First, a Blue Origin New Glenn rocket exploded during a test late Thursday, creating potential launch delays for AST SpaceMobile's satellites and pushing out the timeline for the company to realize its revenue backlog. Second, reports indicated SpaceX had lowered its target IPO valuation from $2 trillion to $1.8 trillion, dampening overall market sentiment toward space stocks.

Additionally, investors engaged in heavy profit-taking following an extraordinary rally. AST SpaceMobile's shares had surged more than 80% in May and were on an 11-session winning streak prior to Friday's decline, making the stock vulnerable to a pullback as traders locked in gains.