A few days ago, AST SpaceMobile (NASDAQ:ASTS) released an announcement about its BlueWalker 3 test satellite. Apparently, the satellite recently arrived at Cape Canaveral in preparation for an upcoming launch. Now, traders are moving ASTS stock higher based on this development.
At first glance, some folks might assume AST SpaceMobile is one of those companies looking to send celebrities and rich people into space. However, the company is actually focused on “building the first and only space-based cellular broadband network to be accessible by standard smartphones.”
Ambitiously enough, the company intends this network to provide connectivity at 4G and 5G speeds across the globe. But AST first needs to conduct test flights in order to realize this vision. Now with the BlueWalker 3 news, though, the company is evidently one step closer to its goal.
What’s Moving ASTS Stock Today?
Reportedly, after collecting flight data for a planned launch to low Earth orbit, BlueWalker 3 recently departed a California-based testing facility. The company is now planning an early to mid-September launch window for BlueWalker 3.
ASTS stock traders shouldn’t consider this a guarantee, though. AST SpaceMobile cautions that the actual launch date is “subject to change.” The launch date is “contingent on a number of factors including […] final testing, final integration, timely readiness of the launch vehicle and other unknowns.”
Once the satellite is in low Earth orbit — and after initial “in-orbit testing and configuration” has been conducted — AST SpaceMobile “plans to conduct BW3 direct-to-cell phone testing on every inhabited continent, in coordination with mobile network operators.”
AST disclosed all of this news on Aug. 9. However, traders are pushing ASTS stock up nearly 5% this morning. That move may be speculative more than anything on their part.
If and when BlueWalker 3 goes into orbit, though, it could represent a milestone moment for AST SpaceMobile. So, at least for today, some traders are looking to the skies and hoping for huge gains.
On the date of publication, David Moadel 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.