ASTS Should I Buy
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AST SpaceMobile Inc is not a strong buy at the moment for a beginner investor with a long-term strategy. The stock is experiencing significant volatility, with a sharp decline in price due to recent negative news and financial concerns. While there are positive catalysts such as insider and hedge fund buying, the company's financial performance and technical indicators suggest caution. A hold strategy is recommended until the company's financial health and stock stability improve.
The MACD is negatively expanding at -3.871, and the RSI is at 27.264, indicating the stock is nearing oversold territory but not yet signaling a clear reversal. Moving averages are converging, showing no strong directional trend. Key support levels are at $84.414 and $72.614, with resistance at $103.514 and $122.614. The stock is trading below its pivot point, suggesting bearish momentum.
Hedge funds and insiders are significantly increasing their buying activity, indicating confidence in the company's long-term potential.
Analysts from Deutsche Bank and Clear Street have raised their price targets to $137, citing strong growth potential in the direct-to-device market and strategic partnerships.
Revenue growth of 1239.91% YoY in Q3 2025 demonstrates the company's ability to scale its operations.
Recent news of a $1 billion convertible debt offering has raised concerns about the company's financial stability, leading to a sharp decline in stock price.
Scotiabank downgraded the stock to Underperform, citing slow user adoption, high capex, and delayed cash flow generation until 2028-
The stock has experienced a significant price drop of -15.17% in the regular market and -9.33% in pre-market trading, reflecting negative sentiment.
In Q3 2025, revenue increased by 1239.91% YoY to $14.739 million, but net income dropped by -28.54% YoY to -$122.874 million. EPS declined by -59.09% YoY to -0.45, and gross margin fell to -23.67%, down -123.67% YoY. The company is struggling with profitability despite revenue growth.
Analysts are divided on AST SpaceMobile. Deutsche Bank and Clear Street have issued Buy ratings with price targets of $137, citing strong growth potential and strategic partnerships. However, Scotiabank downgraded the stock to Underperform with a $45.60 price target, citing concerns about valuation, slow adoption, and high capex. BofA maintains a Neutral rating with a $100 price target, noting the company's unique position in the direct-to-device market but highlighting execution risks.
