AST SpaceMobile, Inc. (ASTS) saw its shares drop sharply by 6.98% in pre-market trading on Wednesday following a rating downgrade by Scotiabank.

Scotiabank downgraded the stock to "sector underperform" from "sector perform," citing concerns over long delays in the company's satellite deployment and the rapid growth of competitor Starlink. The brokerage 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. "The technology is impressive, but we cannot remember a single time when the company got timing right," Scotiabank stated.