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AST SpaceMobile Falls Following Kerrisdale Capital Short Report

Published 09/15/2022, 12:32 PM
Updated 09/15/2022, 12:45 PM
© Reuters. AST SpaceMobile (ASTS) Falls Following Kerrisdale Capital Short Report

By Sam Boughedda

AST SpaceMobile Inc (NASDAQ:ASTS) is down more than 7% Thursday after Kerrisdale Capital said it is short the stock questioning the firm's credibility.

AST SpaceMobile is said to be working on a technology that will allow smartphones to connect to satellites internationally.

However, Kerrisdale, best known for short-selling, claims AST SpaceMobile is a $1.8bn satellite company "trying to sell the dream of connecting billions of people with mobile broadband directly to their phones from space, but without a credible ability to bring that dream to reality."

It added that the company's satellite design is "destined to fail," which it believes is unsurprising due to AST management's "uninspiring backgrounds" and a "business case that makes little sense" in almost all aspects.

Kerrisdale also questioned why AST keeps pushing out the projected timeline while its stock has gained significantly in the past few months. In a further scathing assessment, the short-seller said: "AST is an ambitious, wildly risky science project that has no business (literally) being public."

Latest comments

Now that SpaceX successfully delivered AST's BW3 test satellite to orbit on 9/10 as their most complex rocket launch to date (watch video on their website), heavy shorts and competitors will keep spreading speculation in hopes to manipulate the stock. Use common sense when researching. Would industry powerhouse partners like Vodaphone, American Tower, Rakuten, Nokia, and Samsung Next waste years on pioneering tech with high probability to fail? Would FCC and NASA allow a half-baked solution in orbit. FACT CHECK articles and the tenure of sources. Trash any articles that don't cite NAMED sources; anyone can be an "industry expert or insider". This type of market noise and the ease of such agendas remain quite frustrating. Always question the agenda of content. Is it for clicks (advertising revenue) or written for emotional persuasion? Do the facts check out, or do they just seem to sound legit?
Why is a quality journal like Investing.Com wasting time reporting a sham report full of inaccuracies with one intention, to undermine the share price of a business in support of its own short trading position? This is a disreputable hedge fund that is under suspicion from the SEC and Department of Justice. It’s Investment Manager has a conviction for cocaine abuse.
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