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Can ASTS Satellites Transform the Future of Defense Communications?

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Key Takeaways

  • ASTS is building a direct-to-cell satellite network for standard smartphones without special devices.
  • ASTS supports defense efforts through the SHIELD initiative and the HALO Europa program.
  • BlueBird LEO satellites extend voice, messaging and data coverage to remote and disaster-affected areas.

AST SpaceMobile (ASTS - Free Report) is developing a satellite network that could transform defense communications by allowing standard smartphones to connect directly to satellites without specialized equipment. This capability can help military personnel and emergency responders stay connected when ground-based communication networks are unavailable or disrupted.

AST SpaceMobile's BlueBird low Earth orbit (LEO) satellites provide reliable connectivity across remote areas, maritime regions and disaster zones where conventional cellular coverage is limited. By supporting voice, messaging and data services on compatible smartphones, the network can improve operational flexibility while reducing reliance on dedicated satellite phones.

The company is also expanding its presence in the defense sector through programs such as the U.S. Missile Defense Agency's SHIELD initiative and the Space Development Agency's HALO Europa program. These efforts highlight the growing interest in resilient, space-based communication systems that complement existing military networks and strengthen national security.

As governments invest in resilient space-based infrastructure, AST SpaceMobile is likely to support future military and emergency communications. The company’s direct-to-cell satellite network could become a vital supplementary communication layer for mission-critical operations where reliable connectivity is essential.

How Are Other Competitors Performing?

AST SpaceMobile faces competition from Globalstar, Inc. (GSAT - Free Report) and Viasat, Inc. (VSAT - Free Report) . Globalstar operates in a LEO satellite network that supports defense communications. Its satellites help military personnel stay connected in remote areas where regular communication networks are unavailable. The company works with government and defense agencies to provide reliable satellite connectivity.

Viasat provides satellite communications for military and government users. Its satellite network helps defense forces maintain secure and reliable communications during critical missions. The company also supports defense operations with satellite connectivity for aircraft, ships and ground forces.

ASTS’ Price Performance, Valuation and Estimates

AST SpaceMobile shares have gained 66.2% over the past year compared with the industry’s growth of 44.9%.

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From a valuation standpoint, AST SpaceMobile trades at a forward price-to-sales ratio of 61.27, well above the industry average of 5.11.

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Image Source: Zacks Investment Research

Earnings estimates for 2026 have declined 48.5% to a loss of $1.47 per share over the past 60 days, while the same for 2027 has decreased to a loss of 38 cents per share.

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Image Source: Zacks Investment Research

AST SpaceMobile currently carries a Zacks Rank #4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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