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Why AST SpaceMobile Stock Just Crashed 25%

TheMotleyFool

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Why AST SpaceMobile Stock Just Crashed 25%: https://g.foolcdn.com/editorial/images/761931/rocket-crashed-and-impacted-on-the-surface-of-a-table.jpg

It's a good news, horrible news kind of a day for investors in cellphone-to-satellite-to-cellphone company AST SpaceMobile (NASDAQ: ASTS), as shares of one of the world's more popular space stocks plunge 25.2% through noon ET on Friday.

The good news is that AST just announced a plan to get hold of the cash it needs to finish building out its constellation of satellites, providing the world's cellphone users a means of calling anyone from anywhere via satellite. The bad news is that getting hold of this cash is going to require massive dilution of existing shareholders.

And this, in a nutshell, is why the stock is tanking today.

Source Fool.com

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