ASTS Stock Hits 2026 Low After Surprise $1B Raise — But Jon Najarian Calls It A ‘Strong Bet To The Upside’

• ASTS shares posted their worst one-day drop in over two years after announcing the $1 billion convertible-note offering.
• Jon Najarian called the deal “a pretty strong bet to the upside,” citing the $79.57 conversion price.
• ASTS continues expanding its BlueBird network, with newer satellites expected to deliver nearly twice the peak speeds of its first generation.

Shares of AST SpaceMobile (ASTS) suffered their worst one-day drop in more than two years on Thursday after a $1 billion convertible-note raise rattled investors, but options veteran Jon Najarian said that the deal still represents “a pretty strong bet to the upside.”

ASTS stock plunged 17% on Thursday to close at $55.01, marking its lowest closing level of the year. 

Najarian Calls ASTS Deal A Bullish Bet

Najarian and his brother Pete Najarian broke down the financing and ASTS’ selloff in a Market Rebellion video posted on X. The brothers co-founded Market Rebellion, an options-focused market analysis platform, in 2016.

AST SpaceMobile priced $1 billion of 1.625% convertible senior notes due in 2034, with an initial conversion price of $79.57 per share, which was about 20% above Wednesday’s close. Jon Najarian said that the notes give buyers the right, but not the obligation, to convert into ASTS shares at that price. While the 1.625% coupon is relatively low, he said the real appeal lies in the potential equity upside. 

“If the stock’s 200 bucks, you’re still exercising it at $79.57,” he said, calling the structure “a pretty strong bet to the upside.” The $200 figure was a hypothetical example, not a formal price target.

ASTS Dilution Fears Drive Selloff 

Pete Najarian said that investors were focused on the risk that the notes could eventually convert into shares and dilute existing holders. “They’re concerned about dilution and all the rest of it,” he said, adding that the stock’s negative reaction was “understandable.” Still, he agreed the financing could support a valuable long-term opportunity. “I think this could be something into the future that could be pretty special, quite frankly,” he said.

The brothers also stressed that ASTS remains a highly volatile trade. Implied volatility in the options was around 100%, according to Pete Najarian. “The implied volatility of this thing is not a joke,” he said. “Hell yes, this thing is volatile.”

Could ASTS Buy A Rocket Company?

AST SpaceMobile said proceeds remaining after capped-call transactions may be used to secure additional access to orbit through “partnerships and/or acquisitions.” The company said the move could further vertically integrate its business and reduce reliance on third-party launch providers, although it currently has no agreement for any transaction.

Satellite communications analyst Tim Farrar said that the language pointed to a potential acquisition. Potential names raised included United Launch Alliance, Firefly Aerospace, Relativity Space and Stoke Space. Farrar also said that AST may be trying to copy Rocket Lab’s vertically integrated model across launch and satellite infrastructure.

“ASTS were outbid for Iridium, so it looks like they are now trying to copy Rocket Lab’s vertical integration play,” he said. The Najarians also suggested acquisitions may be part of the plan.

“They’ve got some ideas with partnerships, acquisitions, all that kind of thing that people are excited about,” Jon Najarian said. “They just needed the capital,” he added.

ASTS BlueBird Buildout Continues

The financing comes as AST SpaceMobile continues expanding its BlueBird satellite network. BlueBird 10 recently deployed its communications array in low Earth orbit, while BlueBirds 8 and 9 are next. BlueBird 11 has arrived at Cape Canaveral, and BlueBirds 12 and 13 are being transported from Texas to Florida. AST said that the newer satellites are expected to deliver nearly twice the peak speeds of its first-generation spacecraft.

How Do Retail Traders Feel About ASTS?

On Stocktwits, retail sentiment for ASTS slipped to ‘neutral’ from ‘bullish’ levels a day ago amid ‘high’ message volume.

A Stocktwits poll with more than 2,000 votes showed retail traders largely remained bullish despite the selloff, with 49% saying they were "buying the dip," while 21% were waiting for a better entry, 19% planned to hold their positions, and just 11% said they were selling or trimming. 

ASTS stock has risen 5% over the past year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Read Next: SPCX Stock Extends Post-IPO Rout: Starship Launch Scrub Deepens Slide As Short Sellers Build $25B Bear Bet