We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AST Spacemobile Rises 101.7% in Six Months: How to Play the Stock?
Read MoreHide Full Article
Key Takeaways
ASTS shares rose 101.7% in six months, sharply outperforming the wireless equipment industry and market.
ASTS launched its BlueBird 6 satellite, significantly expanding its coverage worldwide.
ASTS faces rising costs, stiff satellite competition, and a premium valuation despite telecom partnerships.
AST SpaceMobile (ASTS - Free Report) has gained 101.7% in the past six months compared with the wireless equipment industry’s growth of 21%. The stock has outperformed the Zacks Computer & Technology sector and the S&P 500’s growth during this period.
Image Source: Zacks Investment Research
It has underperformed its competitors, such as Globalstar, Inc. (GSAT - Free Report) and Viasat, Inc. (VSAT - Free Report) . Globalstar has surged 125.1% while Viasat has returned 144.1% during this period.
Key Growth Drivers for ASTS
ASTS is building the world’s first global cellular broadband network in space, accessible directly by standard smartphones (4G-LTE/5G devices) for commercial and government use, leveraging its extensive Intellectual Property and patent portfolio. The company recently successfully launched BlueBird 6 satellite into orbit from the Satish Dhawan Space Centre in Sriharikota, India. This was the largest commercial communication array ever deployed in low earth orbit. The system is 3x larger and capable of delivering 10x capacity compared to ASTS’ Bluebird 1-5 satellites.
The satellite is engineered to deliver up to 120 Mbps peak data rates to standard, unmodified mobile devices. Terrestrial network infrastructure has its limitations. Despite rapid deployments of 5G and fiber networks nationwide, a large area worldwide has remained outside of the network coverage area. Remote and rural locations, which are sparsely populated, are often deemed unviable for network deployment by major telecom companies. Moreover, geographically challenging terrain makes it difficult to set up ground network infrastructure. Hence, ASTS’ space-based connectivity can be a game changer in these scenarios.
Several major telecom operators worldwide are collaborating with ASTS expand their coverage in rural and remote regions. There are initiatives from several governments worldwide supporting this trend, as it will bridge the digital divide. Network operators such as AT&T, Verizon, Vodafone, Rakuten, Google, American Tower, Bell and stc Group and others aim to leverage ASTS capabilities to increase accessibility of high-speed 4G and 5G networks and support voice, full data and video applications.
There is a growing demand for ASTS space-based connectivity in the defense and public safety domains as well. AT&T FirstNet is set to begin beta service testing of space-based connectivity for public safety officials in the first half of 2026. The U.S. Government also aims to utilize satcom for military and government communications infrastructure. ASTS has secured multiple U.S. Government contracts, which increase its revenue-generating opportunities.
Key Challenges
AST SpaceMobile operates in a highly competitive mobile satellite services market. The company faces severe competition from existing and new industry leaders like SpaceX’s Starlink and Globalstar, which are developing satellite communications technology using LEO constellations. Viasat is also expanding into space-based connectivity and collaborating with major telecom operators. Such trends can impose a challenge to ASTS’ satcom growth initiatives.
Moreover, to maintain its competitive edge amid growing competition, the company is rapidly improving its SATCOM capabilities. The company plans to launch 45-60 satellites by the end of 2026. This is driving up the operating expenses and putting pressure on the margin. We expect pressure on the bottom line to remain in the near term.
Satellite materials prices often fluctuate due to several geopolitical and macroeconomic factors. This increases capital costs for the company. Moreover, tariff-related uncertainties and volatility in foreign exchange are other concerns.
Image Source: Zacks Investment Research
Estimate Revision Trend of ASTS
Earnings estimates for 2025 and 2026 have decreased over the past 60 days.
Image Source: Zacks Investment Research
Key Valuation Metric of ASTS
However, from a valuation standpoint, ASTS is currently trading at a premium compared to the industry. AST SpaceMobile trades at a forward price-to-sales ratio of 114.07, well above the industry.
Image Source: Zacks Investment Research
End Note
With a comprehensive portfolio of 3,800 patents and patent-pending claims, AST SpaceMobile is well-positioned to capitalize on the expanding satellite communication market. Collaboration with major telecom operators worldwide and a growing international footprint are positive. Gateway hardware sales and various commercial and U.S. government are expected to drive revenues.
However, owing to the stock’s premium valuation, we believe investors should remain cautious as macroeconomic factors, or economic downturns, can significantly impact overvalued stocks like ASTS. The company currently carries a Zacks Rank 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AST Spacemobile Rises 101.7% in Six Months: How to Play the Stock?
Key Takeaways
AST SpaceMobile (ASTS - Free Report) has gained 101.7% in the past six months compared with the wireless equipment industry’s growth of 21%. The stock has outperformed the Zacks Computer & Technology sector and the S&P 500’s growth during this period.
Image Source: Zacks Investment Research
It has underperformed its competitors, such as Globalstar, Inc. (GSAT - Free Report) and Viasat, Inc. (VSAT - Free Report) . Globalstar has surged 125.1% while Viasat has returned 144.1% during this period.
Key Growth Drivers for ASTS
ASTS is building the world’s first global cellular broadband network in space, accessible directly by standard smartphones (4G-LTE/5G devices) for commercial and government use, leveraging its extensive Intellectual Property and patent portfolio. The company recently successfully launched BlueBird 6 satellite into orbit from the Satish Dhawan Space Centre in Sriharikota, India. This was the largest commercial communication array ever deployed in low earth orbit. The system is 3x larger and capable of delivering 10x capacity compared to ASTS’ Bluebird 1-5 satellites.
The satellite is engineered to deliver up to 120 Mbps peak data rates to standard, unmodified mobile devices. Terrestrial network infrastructure has its limitations. Despite rapid deployments of 5G and fiber networks nationwide, a large area worldwide has remained outside of the network coverage area. Remote and rural locations, which are sparsely populated, are often deemed unviable for network deployment by major telecom companies. Moreover, geographically challenging terrain makes it difficult to set up ground network infrastructure. Hence, ASTS’ space-based connectivity can be a game changer in these scenarios.
Several major telecom operators worldwide are collaborating with ASTS expand their coverage in rural and remote regions. There are initiatives from several governments worldwide supporting this trend, as it will bridge the digital divide. Network operators such as AT&T, Verizon, Vodafone, Rakuten, Google, American Tower, Bell and stc Group and others aim to leverage ASTS capabilities to increase accessibility of high-speed 4G and 5G networks and support voice, full data and video applications.
There is a growing demand for ASTS space-based connectivity in the defense and public safety domains as well. AT&T FirstNet is set to begin beta service testing of space-based connectivity for public safety officials in the first half of 2026. The U.S. Government also aims to utilize satcom for military and government communications infrastructure. ASTS has secured multiple U.S. Government contracts, which increase its revenue-generating opportunities.
Key Challenges
AST SpaceMobile operates in a highly competitive mobile satellite services market. The company faces severe competition from existing and new industry leaders like SpaceX’s Starlink and Globalstar, which are developing satellite communications technology using LEO constellations. Viasat is also expanding into space-based connectivity and collaborating with major telecom operators. Such trends can impose a challenge to ASTS’ satcom growth initiatives.
Moreover, to maintain its competitive edge amid growing competition, the company is rapidly improving its SATCOM capabilities. The company plans to launch 45-60 satellites by the end of 2026. This is driving up the operating expenses and putting pressure on the margin. We expect pressure on the bottom line to remain in the near term.
Satellite materials prices often fluctuate due to several geopolitical and macroeconomic factors. This increases capital costs for the company. Moreover, tariff-related uncertainties and volatility in foreign exchange are other concerns.
Image Source: Zacks Investment Research
Estimate Revision Trend of ASTS
Earnings estimates for 2025 and 2026 have decreased over the past 60 days.
Image Source: Zacks Investment Research
Key Valuation Metric of ASTS
However, from a valuation standpoint, ASTS is currently trading at a premium compared to the industry. AST SpaceMobile trades at a forward price-to-sales ratio of 114.07, well above the industry.
Image Source: Zacks Investment Research
End Note
With a comprehensive portfolio of 3,800 patents and patent-pending claims, AST SpaceMobile is well-positioned to capitalize on the expanding satellite communication market. Collaboration with major telecom operators worldwide and a growing international footprint are positive. Gateway hardware sales and various commercial and U.S. government are expected to drive revenues.
However, owing to the stock’s premium valuation, we believe investors should remain cautious as macroeconomic factors, or economic downturns, can significantly impact overvalued stocks like ASTS. The company currently carries a Zacks Rank 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.