Written by Sam Bogda
AST SpaceMobile Inc (NASDAQ 🙂 tumbled more than 7% Thursday after Kerrisdale Capital said stocks are weak, calling into question the company’s credibility.
AST SpaceMobile is said to be working on technology that will allow smartphones to connect to satellites internationally.
However, Kerrisdale, notorious for short selling, claims AST SpaceMobile is a $1.8 billion satellite company “trying to sell the dream of connecting billions of people with mobile broadband directly to their phones from space, but without a reliable ability to make that dream a reality.”
She added that the company’s satellite design is “doomed to failure,” which she believes is unsurprising due to AST’s management’s “uninspiring backgrounds” and “nonsense business condition” in almost all aspects.
Kerrisdale also questioned why AST continues to push the expected schedule while its stock has soared in the past few months. In another scathing assessment, the short seller said: “AST is a very ambitious and serious science project that has no business (literally) to be public.”