By Al Root
Trading in space stocks remains wild ahead of SpaceX's mega-IPO.
All it takes is an announcement tied to regular business to get traders active.
Case in point: AST SpaceMobile. Shares were up 1.4% in early trading Tuesday, while the S&P 500 was down 0.3%. An announcement by the company that three of its communications satellites were slated to head to the stars on June 17, aboard a SpaceX rocket, seems to have catalyzed the gains.
The space launch, while impressive, just isn't really news. AST is building a communications satellite constellation that will be used by Verizon Communications, AT&T, and others to improve wireless service on Earth.
AST has built a billion-dollar backlog, which underpins its $36 billion market value. Everyone knows what the game plan is.
To be sure, launch cadence has been on investors' minds lately. Especially after a couple of Blue Origin incidents that will slow AST's business development. AST shares were north of $133 before a Blue Origin New Glenn rocket exploded on the pad, badly damaging launch infrastructure. It's natural that investors are soothed to hear about the next satellite launch.
Volatility also attracts traders, which can lead to even more volatility. Investors should bank on more volatile trading in space-related stocks ahead of SpaceX's IPO, which is expected to price this week.
SpaceX essentially created the modern space economy by pioneering reusable rockets, which dramatically lowered the cost of reaching orbit, enabling applications like space-based cellphone connectivity.
Early gains leave AST stock up nearly 170% over the past 12 months. How much of that is hype related to the SpaceX IPO or AST's business development is hard to say.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
June 09, 2026 11:07 ET (15:07 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.