MSCI Inc announced Tuesday that it has added AST SpaceMobile Inc to its MSCI All Country World Index (ACWI), identifying the satellite communications company as the largest among 63 new securities added to the index by market capitalization.
The index update involved 63 additions and 61 removals in total. Among the three largest additions measured by market capitalization were AST SpaceMobile, Coherent Inc, and FTAI Aviation Ltd.
AST shares displayed intraday volatility on Tuesday, dropping roughly 5.7% during the regular session before finishing with a modest 0.2% gain in aftermarket trading. Observers often view index inclusions as supportive for a stock because such moves typically prompt purchases by index-tracking funds and raise a company's visibility among institutional and retail investors.
Trading in AST has been choppy in recent weeks. The company experienced whipsaw price action over the prior two-week period after Starlink owner SpaceX indicated plans to pursue an initial public offering this year. Market commentary referenced in the trading pattern suggests that additional funding tied to an IPO could strengthen Starlink's offering and increase competition for AST in the space-based cellular broadband market.
AST and Starlink are noted in market coverage as among the limited set of firms developing space-based cellular broadband networks. AST has secured several commercial arrangements to support its satellite-based cellular services in the United States, including deals with major communications companies AT&T Inc and Verizon Communications Inc.
Context and potential market effects
Index additions such as this one can have multi-faceted impacts: they may generate direct buying demand from funds that track the MSCI ACWI, and they can also increase analyst and investor focus on a company. For AST, the listing places the firm more squarely on the radar of global index investors while it continues to navigate a competitive landscape that includes Starlink.
What remains uncertain
The degree to which the MSCI inclusion will influence AST's longer-term share performance is not specified. Similarly, the evolution of competitive dynamics between AST and Starlink depends on developments around SpaceX's financing and any potential public offering, which investors have already been pricing into the stock.
AST's commercial agreements with AT&T and Verizon are cited as part of its go-to-market strategy for satellite-based cellular services in the U.S., but the article does not provide further detail on the terms or timelines of those deals.