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Bear of the Day: AST SpaceMobile (ASTS)

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AST SpaceMobile ((ASTS - Free Report) ) is building the world’s first and only global cellular broadband network in space, accessible directly by standard smartphones.

The SpaceMobile Service is currently planned to be provided by a constellation of high-powered, large phased-array satellites in low Earth orbit (“LEO”) using low-band and mid-band spectrums controlled by Mobile Network Operators (MNOs) in areas lacking terrestrial network coverage. 

From the company website...

"Our BlueBird satellites provide full broadband directly to standard smartphones without specialized hardware or phone modifications. Make video calls, browse the web, and use your apps at 4G and 5G speeds from anywhere on Earth."

To accomplish this, AST SpaceMobile has partnered with over 50 mobile network operators to seamlessly integrate with ground infrastructure and offer a turnkey service to their nearly 3 billion combined subscribers.

Why is ASTS a Zacks #5 Rank Again?

Since reporting a big Q3 EPS miss in November, the profit consensus for 2025 fell 18% from a loss of 90-cents to -$1.06, representing an annual loss of 60%.

And the full-year 2026 was revised downward from a loss of 63-cents to -$0.74.

Earnings estimate revisions are the only metric that the Zacks Rank measures and matches companies against each other on.

But there is another big issue here investors may want to look at.

While revenues ramped dramatically for 2025 from $4 million to nearly $55 million, and this year is projected to grow 376% to $261 million, the stock has rallied strongly to its October highs near $100 -- making shares trade for a stratospheric 138 times sales based on its market cap of $36 billion.

It would take some big sales contracts -- in fact, a doubling of sales -- just to get the ASTS price-to-sales ratio down to Palantir's ((PLTR - Free Report) ) near 70X.

Bottom line: Unless you have conviction about holding ASTS for the long term, it may be best to take profits and wait for this potential double-top to resolve and for the earnings picture to trough. The Zacks Rank will let you know.


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