AST SpaceMobile, Inc. (NASDAQ:ASTS) stock fell nearly 7% Thursday as broader market weakness and concerns about rising debt across the space industry weighed on investor sentiment.

The decline followed reports of a major financing plan by SpaceX. Meanwhile, the Nasdaq fell 0.57%, and the S&P 500 declined 0.34%.

SpaceX’s $40 Billion Debt Plan Raises Concerns

Space Exploration Technologies Corp. (NASDAQ:SPCX) is seeking $40 billion in financing to purchase artificial intelligence chips from NVIDIA Corporation (NASDAQ:NVDA).

According to a media report Wednesday, SpaceX is considering $10 billion in bank loans and $30 billion in investment-grade debt. Apollo Global Management, Inc. (NYSE:APO) is expected to lead the financing, which could close in 2027.

The proposed borrowing has raised concerns about rising debt and capital requirements across the space industry.

Technical Analysis: Bearish Trend Persists

AST SpaceMobile remains below its major moving averages, signaling continued weakness.

The stock trades about 5.3% below its 20-day simple moving average (SMA) of $60.07 and 29.7% below its 200-day SMA of $80.93.

Additionally, its 50-day SMA remains below its 200-day SMA following a death cross in July. This pattern signals a bearish long-term trend.

However, the moving average convergence divergence (MACD) indicator remains above its signal line. The positive histogram suggests selling momentum may be easing.

Key resistance stands near $65.50, while immediate support sits around $55.50.

Analyst Outlook

AST SpaceMobile carries a Hold consensus rating, with an average analyst price forecast of $82.83. Recent analyst actions include:

• B. Riley Securities: Downgraded the stock to Neutral and lowered its price forecast to $65 on Oct. 2.
• Berenberg: Initiated coverage with a Buy rating and a $92 price forecast on Sept. 2.
• UBS: Maintained a Neutral rating and lowered its price forecast to $78 on Aug. 11.

ASTS Stock Price Activity: AST SpaceMobile shares were down 6.61% at $56.64 at the time of publication on Thursday, according to Benzinga Pro data.

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Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.