AST SpaceMobile (ASTS) stock rose 14.11 percent on Nov. 9 following an announcement of a joint venture with Japanese carrier Rakuten to deliver satellite cell service across Japan, particularly in areas with limited coverage.
The new entity, Rakuten AST, will be controlled by Rakuten and will leverage AST SpaceMobile's satellites to expand cell service and maintain connectivity during disasters. Rakuten AST is set to receive up to $1 billion in government funding—a subsidy the company secured a bid for in June.
The gains eroded in after-hours trading after AST SpaceMobile reported Q3 results. Revenue nearly tripled year-over-year to $42.3 million but fell short of Wall Street estimates. The company posted a loss of $0.44 per share and maintained its full-year revenue guidance of $150 million to $200 million.
AST SpaceMobile expects to begin intermittent U.S. coverage by year-end and have 45 BlueBird satellites in orbit by mid-2027.
