AST SpaceMobile Shares Climb 6% as Japan Sets June Decision for $1B Satellite Contract
ASTS•AST SpaceMobile shares rose 6% overnight as Japan’s Ministry of Internal Affairs prepares to award its 150 billion yen direct-to-cell satellite contract by end-June. The Rakuten-AST alliance and a KDDI-SpaceX consortium revised deployment plans ahead of the $1 billion J-LEO decision, highlighting stakes in nationwide smartphone coverage.
1. Stock Reaction
AST SpaceMobile shares jumped 6% overnight as investors focused on Japan’s upcoming J-LEO award, though the stock has declined 12% over the past two weeks. The rally reflects anticipation of a major contract with significant revenue potential.
2. J-LEO Project Overview
Japan’s Ministry of Internal Affairs and Communications launched the J-LEO initiative with a 150 billion yen budget to build a nationwide direct-to-cell network by March 2029, including video calling and disaster communications capabilities.
3. Alliance Deployment Revisions
The Rakuten Mobile-AST SpaceMobile alliance and a KDDI-SpaceX consortium both revised their satellite deployment plans earlier this year to strengthen bids, underscoring the high stakes of the competition.
4. Sector Sentiment
Enthusiasm from SpaceX’s $75 billion IPO debut, which saw a 19% first-day surge, has lifted sentiment across space stocks, benefitting smaller players like AST SpaceMobile.
