Space Communication Stocks Plunge... 8% Drop Following Competitor's Comment

On January 21, AST SpaceMobile Inc. (NASDAQ: ASTS) plunged 7.95% on the Nasdaq to close at $103.50, wiping out roughly $2.1 billion in market capitalization—about KRW 2.8 trillion—in a single session. Trading volume hit 18.98 million shares, suggesting a wave of short-term profit-taking after the stock’s recent rally. Analysts attribute the drop largely to the emergence of a formidable new rival: Blue Origin’s announcement of Project TerraWave, its direct-to-smartphone satellite-communication initiative targeting the same market. Until just days before, AST SpaceMobile had set a 12-month high and surged by several tens of percentage points year-to-date, buoyed by expectations around U.S. defense projects and satellite-launch momentum. The company is building a space-based cellular network by deploying a low-Earth-orbit satellite constellation that delivers 4G and 5G services directly to standard smartphones without ground stations, and, through partnerships with AT&T, Verizon and Vodafone, could potentially reach some three billion subscribers. With meaningful revenue still limited and substantial capital expenditures and losses on the books, its stock remains highly sensitive to satellite launch schedules, regulatory approvals and additional funding—hallmarks of a high-volatility growth company.