Astra Space (NASDAQ:ASTR) saw a lot of red on Wednesday. ASTR stock dropped nearly 3% by market close, leaving investors and Astra fans alike scratching their heads.
What’s going on with the aerospace company?
Since its SPAC debut, the company’s share price has remained relatively stagnant around the $10 mark. Fortunately, Wednesday’s drop down to $5.10 per share — a new low — likely reflects more about general market conditions than anything to do with Astra itself.
Astra’s positioning as a high-growth tech company doesn’t bode well after Treasury yields saw a brisk uptick on Tuesday. Rising bond yields are generally viewed as a negative for stock prices. This is especially true for growth stocks whose future profits are effectively less valuable. Tech stocks across the board were hit by the pessimistic wave, and it appears ASTR was unable to avoid the onslaught.
What else do you need to know about Astra lately?
ASTR Stock Sees New Low Despite Promising Plans
Despite Astra’s stock price tumble, the company is otherwise seemingly healthy. Just this week Astra had a very promising update regarding its current space launch plans.
On Monday, Astra Chief Executive Chris Kemp tweeted about Astra’s latest orbital launch.
Preparations are underway for @Astra’s first launch out of Cape Canaveral and first orbital payload delivery for @NASA! We will announce launch date/time once we receive our launch license from the FAA and complete static fire.
— Chris Kemp (@Kemp) January 17, 2022
This could be a big catalyst for the company going forward and certainly is enticing to current ASTR owners. Whether the company will see its share price follow a similar optimistic path, though, remains to be seen.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.