AST SpaceMobile Stock Falls From Highs Before Earnings

Telecommunications stock AST SpaceMobile Inc (NASDAQ:ASTS) has pulled back from its Oct. 16 record high of $102.79, last seen down 5.3% to trade at $66.68 today. Though the reason for the price action isn't immediately clear, AST's $1 billion debt offering of convertible senior notes hasn't helped sentiment since late last month. 

Year to date, the equity is still outperforming with a 214.8% lead. Plus, a floor of support could be forming at the $66 level. 

Looking ahead, the company is gearing up for its third-quarter earnings report, due out after the close on Monday, Nov. 10. Zacks Research anticipates losses of 18 cents per share on revenue of $20.74 million, and noted the company's $64.5 million acquisition of global S-Band spectrum rights that happened over the quarter.

ASTS has a history of outsized post-earnings moves, averaging a next-day swing of 24.8%, regardless of direction, over the last two years. This time around, the options pits are pricing in a 19% move. Of these last eight quarters, the stock finished positive after five.

Meanwhile, though short interest is down 12.5% in the last two weeks, it still accounts for a whopping 18.1% of the stock's available float. It would take shorts three days to cover, at ASTS' average pace of daily trading.