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 plans a June 17 launch for BlueBird 8, 9 and 10 with higher expected peak data speeds.
VZ and ASTS differ in estimates, valuation metrics, price performance and stated execution challenges.
Verizon Communications Inc. (VZ - Free Report) and AST SpaceMobile (ASTS - Free Report) are both strengthening their capabilities to expand the reach and accessibility of wireless connectivity. AST SpaceMobile is building the world’s first and only 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. As one of the leading wireless carriers in the United States, Verizon delivers communication services to a vast customer base across the public sector, small and medium businesses, as well as global enterprises.
Per a report from Precedence Research, the global wireless connectivity market was valued at $134.77 billion in 2026. It is expected to reach $412.84 billion in 2035, with a compound annual growth rate of 13.31%. The broader connectivity market is entering a phase where terrestrial wireless networks and satellite networks are converging rather than competing. Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in this broader sector.
The Case for Verizon
Verizon’s broadband build continues to broaden its addressable market and create more room to sell converged offers over time. In first-quarter 2026, Verizon delivered 341,000 broadband net additions, including 214,000 fixed wireless access net additions and 127,000 fiber broadband net additions, bringing fixed wireless access and fiber broadband connections to about 16.8 million.
Verizon has launched a company-wide transformation initiative aimed at becoming an AI-first organization. The program emphasizes automation, AI-powered customer interactions, digital sales channels, micro-segmentation, and process simplification to enhance customer experience while improving operational efficiency. Through these initiatives, the company targets approximately $5 billion in operating expense savings and higher long-term profitability. AI integration will serve as a key enabler across its operations.
Moreover, Verizon continues to strengthen its network capabilities through investments in fiber infrastructure, network excellence, and advanced cybersecurity. Its participation in Anthropic's Project Glasswing underscores this strategy, leveraging cutting-edge artificial intelligence to identify complex vulnerabilities and bolster the security and resilience of its critical network infrastructure. The company faces stiff competition in the U.S. telecom market from other industry leaders such as AT&T and T-Mobile. However, its strong focus on innovation and customer retention strategies, such as bundled plan offerings, enables it to gain a competitive edge.
Verizon’s 2026 outlook reflects higher management confidence in earnings delivery, supported by cost actions and a more disciplined promotional stance. Verizon raised 2026 adjusted EPS guidance to $4.95-$4.99 from $4.90-$4.95 expected earlier. The company also reiterated 2026 cash flow from operations guidance of $37.5 billion to $38.0 billion and free cash flow guidance of $21.5 billion or more.
The Case for ASTS
Utilizing large phased array antennas, AST SpaceMobile’s technology is backed by approximately 3,900 patents and patent-pending claims. This design aims to deliver worldwide cellular coverage by eradicating dead zones and providing space-based connectivity to areas that lack broadband service.
The company has deployed an initial set of commercial satellites in low Earth orbit, branded BlueBird, and continues to expand its launch campaign. These satellites support non-continuous service and have been used to validate voice and data capabilities directly to unmodified smartphones. BlueBird 6, which features an approximately 2,400 square-foot communications array, remains in orbit and operating as expected.
The company recently announced that BlueBird satellites 8, 9 and 10 are scheduled to launch aboard a Falcon 9 rocket on June 17, 2026. The BlueBird 8, 9 and 10 satellites are expected to deliver nearly double the peak data speeds achieved by the company's initial Block 1 BlueBird satellites, which recently demonstrated download speeds of 98.9 Mbps directly to standard smartphones. The major advancement in throughput will allow the company to effectively support the most demanding applications used by enterprises.
However, AST SpaceMobile operates in a highly competitive mobile satellite services market with high development and launch costs and well-funded incumbents. Competition in direct-to-device satellite communications is increasing rapidly. Existing and new industry leaders like SpaceX’s Starlink, Viasat, Inc. (VSAT - Free Report) are expanding their SATCOM infrastructure. Viasat announced the successful launch and initial signal acquisition of its ViaSat-3 Flight 3 (F3) satellite, completing the company’s next-generation global ViaSat-3 constellation. The satellite is designed to provide more than 1 Tbps of throughput capacity across the Asia-Pacific region. ViaSat-3 F3 features advanced beamforming and flexible bandwidth allocation capabilities, enabling Viasat to dynamically direct capacity toward high-demand commercial, enterprise and defense markets.
AST SpaceMobile relies on third-party launch providers, and any failure, delay, or underperformance could disrupt satellite deployment and push out commercialization timelines. In April 2026, the Block 2 BlueBird 7 satellite was placed into a lower-than-planned orbit, separated and powered on, but was de-orbited because the altitude was too low for sustained operations. Scale and execution risk remain one of the biggest concerns for investors regarding ASTS. The company must successfully coordinate satellite manufacturing, launch schedules, telecom network integration, regulatory approvals and, ultimately, large-scale commercial service activation. Recent events underscore these challenges.
How Do Zacks Estimates Compare for VZ & ASTS?
The Zacks Consensus Estimate for Verizon’s 2026 sales and EPS implies year-over-year growth of 3.27% and 5.31%, respectively. The EPS estimate for 2026 have moved northward over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AST SpaceMobile’s 2026 sales implies year-over-year growth of 132.32%, while that for EPS suggests a decline of 9.7%. The EPS estimate has declined over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of VZ & ASTS
Over the past year, VZ has gained 4.7% compared to ASTS’ growth of 143.2%.
Image Source: Zacks Investment Research
Verizon looks more attractive than AST SpaceMobile from a valuation standpoint. Going by the price/sales ratio, ASTS’ shares currently trade at 81.91 forward sales, significantly higher than 1.33 for VZ.
Image Source: Zacks Investment Research
VZ or AST SpaceMobile: Which is a Better Pick?
VZ carries a Zacks Rank #3 (Hold), while ASTS has a Zacks Rank #4 (Sell).
Both companies are taking several initiatives to expand their next-generation connectivity portfolio. ASTS’ growing prowess in the direct-to-device broadband capability is evident from its recent achievements. However, the execution risks of ASTS’s massive and technologically intricate project remain a major concern for investors. Verizon is benefiting from strong wireless subscriber additions. The company reported its first positive first-quarter postpaid phone net additions since 2013. This was possible due to lower churn and improved customer satisfaction. Verizon’s focus on AI integration and improving cybersecurity is a positive factor. Owing to these factors and a better Zacks Rank, Verizon is a better investment option at present.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
VZ vs. ASTS: Which Connectivity Stock is the Better Buy?
Key Takeaways
Verizon Communications Inc. (VZ - Free Report) and AST SpaceMobile (ASTS - Free Report) are both strengthening their capabilities to expand the reach and accessibility of wireless connectivity. AST SpaceMobile is building the world’s first and only 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. As one of the leading wireless carriers in the United States, Verizon delivers communication services to a vast customer base across the public sector, small and medium businesses, as well as global enterprises.
Per a report from Precedence Research, the global wireless connectivity market was valued at $134.77 billion in 2026. It is expected to reach $412.84 billion in 2035, with a compound annual growth rate of 13.31%. The broader connectivity market is entering a phase where terrestrial wireless networks and satellite networks are converging rather than competing. Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in this broader sector.
The Case for Verizon
Verizon’s broadband build continues to broaden its addressable market and create more room to sell converged offers over time. In first-quarter 2026, Verizon delivered 341,000 broadband net additions, including 214,000 fixed wireless access net additions and 127,000 fiber broadband net additions, bringing fixed wireless access and fiber broadband connections to about 16.8 million.
Verizon has launched a company-wide transformation initiative aimed at becoming an AI-first organization. The program emphasizes automation, AI-powered customer interactions, digital sales channels, micro-segmentation, and process simplification to enhance customer experience while improving operational efficiency. Through these initiatives, the company targets approximately $5 billion in operating expense savings and higher long-term profitability. AI integration will serve as a key enabler across its operations.
Moreover, Verizon continues to strengthen its network capabilities through investments in fiber infrastructure, network excellence, and advanced cybersecurity. Its participation in Anthropic's Project Glasswing underscores this strategy, leveraging cutting-edge artificial intelligence to identify complex vulnerabilities and bolster the security and resilience of its critical network infrastructure. The company faces stiff competition in the U.S. telecom market from other industry leaders such as AT&T and T-Mobile. However, its strong focus on innovation and customer retention strategies, such as bundled plan offerings, enables it to gain a competitive edge.
Verizon’s 2026 outlook reflects higher management confidence in earnings delivery, supported by cost actions and a more disciplined promotional stance. Verizon raised 2026 adjusted EPS guidance to $4.95-$4.99 from $4.90-$4.95 expected earlier. The company also reiterated 2026 cash flow from operations guidance of $37.5 billion to $38.0 billion and free cash flow guidance of $21.5 billion or more.
The Case for ASTS
Utilizing large phased array antennas, AST SpaceMobile’s technology is backed by approximately 3,900 patents and patent-pending claims. This design aims to deliver worldwide cellular coverage by eradicating dead zones and providing space-based connectivity to areas that lack broadband service.
The company has deployed an initial set of commercial satellites in low Earth orbit, branded BlueBird, and continues to expand its launch campaign. These satellites support non-continuous service and have been used to validate voice and data capabilities directly to unmodified smartphones. BlueBird 6, which features an approximately 2,400 square-foot communications array, remains in orbit and operating as expected.
The company recently announced that BlueBird satellites 8, 9 and 10 are scheduled to launch aboard a Falcon 9 rocket on June 17, 2026. The BlueBird 8, 9 and 10 satellites are expected to deliver nearly double the peak data speeds achieved by the company's initial Block 1 BlueBird satellites, which recently demonstrated download speeds of 98.9 Mbps directly to standard smartphones. The major advancement in throughput will allow the company to effectively support the most demanding applications used by enterprises.
However, AST SpaceMobile operates in a highly competitive mobile satellite services market with high development and launch costs and well-funded incumbents. Competition in direct-to-device satellite communications is increasing rapidly. Existing and new industry leaders like SpaceX’s Starlink, Viasat, Inc. (VSAT - Free Report) are expanding their SATCOM infrastructure. Viasat announced the successful launch and initial signal acquisition of its ViaSat-3 Flight 3 (F3) satellite, completing the company’s next-generation global ViaSat-3 constellation. The satellite is designed to provide more than 1 Tbps of throughput capacity across the Asia-Pacific region. ViaSat-3 F3 features advanced beamforming and flexible bandwidth allocation capabilities, enabling Viasat to dynamically direct capacity toward high-demand commercial, enterprise and defense markets.
AST SpaceMobile relies on third-party launch providers, and any failure, delay, or underperformance could disrupt satellite deployment and push out commercialization timelines. In April 2026, the Block 2 BlueBird 7 satellite was placed into a lower-than-planned orbit, separated and powered on, but was de-orbited because the altitude was too low for sustained operations. Scale and execution risk remain one of the biggest concerns for investors regarding ASTS. The company must successfully coordinate satellite manufacturing, launch schedules, telecom network integration, regulatory approvals and, ultimately, large-scale commercial service activation. Recent events underscore these challenges.
How Do Zacks Estimates Compare for VZ & ASTS?
The Zacks Consensus Estimate for Verizon’s 2026 sales and EPS implies year-over-year growth of 3.27% and 5.31%, respectively. The EPS estimate for 2026 have moved northward over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AST SpaceMobile’s 2026 sales implies year-over-year growth of 132.32%, while that for EPS suggests a decline of 9.7%. The EPS estimate has declined over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of VZ & ASTS
Over the past year, VZ has gained 4.7% compared to ASTS’ growth of 143.2%.
Image Source: Zacks Investment Research
Verizon looks more attractive than AST SpaceMobile from a valuation standpoint. Going by the price/sales ratio, ASTS’ shares currently trade at 81.91 forward sales, significantly higher than 1.33 for VZ.
Image Source: Zacks Investment Research
VZ or AST SpaceMobile: Which is a Better Pick?
VZ carries a Zacks Rank #3 (Hold), while ASTS has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both companies are taking several initiatives to expand their next-generation connectivity portfolio. ASTS’ growing prowess in the direct-to-device broadband capability is evident from its recent achievements. However, the execution risks of ASTS’s massive and technologically intricate project remain a major concern for investors. Verizon is benefiting from strong wireless subscriber additions. The company reported its first positive first-quarter postpaid phone net additions since 2013. This was possible due to lower churn and improved customer satisfaction. Verizon’s focus on AI integration and improving cybersecurity is a positive factor. Owing to these factors and a better Zacks Rank, Verizon is a better investment option at present.