AST SpaceMobile: A Promising Investment in the Space Economy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy ASTS?
Source: Fool
- Revenue Growth and Loss: AST SpaceMobile reported first-quarter revenue of $14.7 million, a significant increase from $700,000 year-over-year, yet it fell short of Wall Street expectations, resulting in a net loss of $191 million or $0.66 per share, which may temporarily affect investor confidence.
- Massive Market Potential: The company plans to launch approximately 45 satellites by the end of 2026, with the FCC recently authorizing its BlueBird satellite constellation for commercial service, and management expects full-year revenue to reach between $150 million and $200 million, indicating strong future growth prospects.
- Expanding Partner Network: AST SpaceMobile has secured nearly 60 mobile network partners, including AT&T and Verizon, which not only strengthens its market position but also lays the groundwork for future service expansion.
- Long-Term Market Outlook: Management estimates that the long-term market for its services could exceed $1 trillion, and considering its current market cap of $22 billion, investing $500 after the recent stock pullback could yield substantial returns for investors.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy ASTS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on ASTS
Wall Street analysts forecast ASTS stock price to rise
8 Analyst Rating
3 Buy
4 Hold
1 Sell
Hold
Current: 83.010
Low
43.00
Averages
91.68
High
137.00
Current: 83.010
Low
43.00
Averages
91.68
High
137.00
About ASTS
AST SpaceMobile, Inc. is engaged in building a global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on its intellectual property (IP) and patent portfolio and designed for both commercial and government applications. The Company is engaged in designing and developing the constellation of BlueBird (BB) satellites and has planned a space-based Cellular Broadband network distributed through a constellation of low Earth orbit (LEO) satellites. Its SpaceMobile Service is being designed to provide high-speed cellular broadband services to end-users who are out of terrestrial cellular coverage using existing mobile devices. The Company intends to continue testing capabilities of the BW3 test satellite, including further testing with cellular service providers and the government. The Company has operations in India, Scotland, Spain, and Israel.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
AST SpaceMobile: A Promising Investment in the Space Economy
- Revenue Growth and Loss: AST SpaceMobile reported first-quarter revenue of $14.7 million, a significant increase from $700,000 year-over-year, yet it fell short of Wall Street expectations, resulting in a net loss of $191 million or $0.66 per share, which may temporarily affect investor confidence.
- Massive Market Potential: The company plans to launch approximately 45 satellites by the end of 2026, with the FCC recently authorizing its BlueBird satellite constellation for commercial service, and management expects full-year revenue to reach between $150 million and $200 million, indicating strong future growth prospects.
- Expanding Partner Network: AST SpaceMobile has secured nearly 60 mobile network partners, including AT&T and Verizon, which not only strengthens its market position but also lays the groundwork for future service expansion.
- Long-Term Market Outlook: Management estimates that the long-term market for its services could exceed $1 trillion, and considering its current market cap of $22 billion, investing $500 after the recent stock pullback could yield substantial returns for investors.
See More
Rocket Lab vs AST SpaceMobile Q1 Earnings Comparison
- Rocket Lab's Strong Performance: Rocket Lab reported a 63.5% year-over-year revenue increase to $200 million in Q1, achieving a gross margin of 38.2%, although operating costs rose 40.4%, resulting in a loss of $0.07 per share, which is an improvement from last year's $0.12 loss, indicating competitive strength in the rapidly growing space market.
- Optimistic Future Guidance: Rocket Lab expects Q2 revenue to grow by 20% sequentially, with gross margins projected to decline to 33%-35%; analysts predict continued losses in the upcoming quarters, but a narrowing to $0.27 per share by 2026, reflecting a gradual path toward profitability.
- AST SpaceMobile's Disappointing Results: AST SpaceMobile reported a Q1 loss of $0.66 per share, significantly worse than the expected $0.21 loss, with revenue at only $14.7 million, missing the $37.5 million target, despite a 20-fold year-over-year growth, as operating costs surged 158%, increasing cash flow pressures.
- Cash Burn Concerns: AST SpaceMobile's cash burn reached $327.4 million in Q1, with an annual forecast of $1.8 billion; if this rate continues, it risks depleting much of its $3.5 billion cash reserves by year-end, posing significant financial challenges ahead.
See More
Trump Announces China to Buy U.S. Crude Oil
- U.S.-China Trade Agreement: Trump announced that China agreed to purchase U.S. crude oil, which not only helps ease trade tensions but also potentially boosts U.S. energy exports, enhancing domestic economic growth prospects.
- Positive Market Reaction: Following the trade deal announcement, the Dow Jones Industrial Average reclaimed the 50,000 mark for the first time, indicating a restoration of market confidence and likely encouraging further investments in U.S. equities.
- Strong Stock Market Performance: Despite early declines in stock futures on Friday, the S&P 500 and Nasdaq are on track for their seventh consecutive week of gains, demonstrating market resilience and investor optimism.
- Industry Dynamics: Cerebras had a stellar debut on Nasdaq, attracting significant investor attention, reflecting strong interest in the semiconductor sector, particularly against the backdrop of surging AI infrastructure investments.
See More
Trump Increases Holdings in ASTS and RKLB Stocks
- Trump's Trading Activity: Trump purchased between $1,001 and $15,000 worth of ASTS shares on March 17 and $15,001 to $50,000 in RKLB stock on January 21, indicating confidence in both space firms and potentially attracting more investor interest.
- ASTS Performance Pressure: AST SpaceMobile reported a quarterly loss wider than Wall Street estimates in its latest earnings report, and while maintaining its full-year revenue outlook, concerns over manufacturing and launch execution risks may hinder its goal of deploying 45 satellites by year-end.
- RKLB Market Performance: Rocket Lab has emerged as one of Wall Street's biggest
See More
Major U.S. Telecoms Form Joint Venture, Boost AST SpaceMobile Stock
- Stock Surge: AST SpaceMobile's stock rose over 10% following the announcement of a joint venture by AT&T, Verizon, and T-Mobile, reflecting strong market confidence in the company's growth potential.
- Strategic Importance of Joint Venture: The newly formed entity aims to expand coverage into 'dead zones' using satellite technology that AST SpaceMobile specializes in, which is expected to significantly enhance the company's market competitiveness and service range.
- Technological Edge: AST SpaceMobile's BlueBird satellites are equipped with the largest commercial antenna arrays ever deployed, achieving peak mobile data speeds of nearly 100 megabits per second, further solidifying its leadership in satellite communications.
- Optimistic Market Outlook: Although specific details of the joint venture remain undisclosed, this development is undoubtedly poised to positively impact AST SpaceMobile's business, significantly increasing the attractiveness of its stock in the market.
See More
SpaceX IPO Could Become Largest in History
- IPO Expectations: SpaceX is valued at potentially over $1 trillion and is expected to raise between $40 billion and $80 billion in its IPO, which would surpass Saudi Aramco's record $29 billion from 2020, marking a significant milestone for the space economy.
- Market Reaction: Following the IPO announcement, stocks of companies involved in the space economy surged, with Firefly Aerospace jumping 16%, and York Space Systems and Rocket Lab rising 5% and 10% respectively, indicating strong market interest in the sector.
- Sustained Rally: Since the March 25 IPO news, York Space Systems has seen a 40% increase in stock price, Rocket Lab has risen by 57%, and Intuitive Machines and Firefly Aerospace have gained 46% and 36% respectively, reflecting growing confidence in space stocks.
- Institutional Attention: Morgan Stanley's
See More
AST SpaceMobile: A Promising Investment in the Space Economy
- Revenue Growth and Loss: AST SpaceMobile reported first-quarter revenue of $14.7 million, a significant increase from $700,000 year-over-year, yet it fell short of Wall Street expectations, resulting in a net loss of $191 million or $0.66 per share, which may temporarily affect investor confidence.
- Massive Market Potential: The company plans to launch approximately 45 satellites by the end of 2026, with the FCC recently authorizing its BlueBird satellite constellation for commercial service, and management expects full-year revenue to reach between $150 million and $200 million, indicating strong future growth prospects.
- Expanding Partner Network: AST SpaceMobile has secured nearly 60 mobile network partners, including AT&T and Verizon, which not only strengthens its market position but also lays the groundwork for future service expansion.
- Long-Term Market Outlook: Management estimates that the long-term market for its services could exceed $1 trillion, and considering its current market cap of $22 billion, investing $500 after the recent stock pullback could yield substantial returns for investors.
See More
Rocket Lab vs AST SpaceMobile Q1 Earnings Comparison
- Rocket Lab's Strong Performance: Rocket Lab reported a 63.5% year-over-year revenue increase to $200 million in Q1, achieving a gross margin of 38.2%, although operating costs rose 40.4%, resulting in a loss of $0.07 per share, which is an improvement from last year's $0.12 loss, indicating competitive strength in the rapidly growing space market.
- Optimistic Future Guidance: Rocket Lab expects Q2 revenue to grow by 20% sequentially, with gross margins projected to decline to 33%-35%; analysts predict continued losses in the upcoming quarters, but a narrowing to $0.27 per share by 2026, reflecting a gradual path toward profitability.
- AST SpaceMobile's Disappointing Results: AST SpaceMobile reported a Q1 loss of $0.66 per share, significantly worse than the expected $0.21 loss, with revenue at only $14.7 million, missing the $37.5 million target, despite a 20-fold year-over-year growth, as operating costs surged 158%, increasing cash flow pressures.
- Cash Burn Concerns: AST SpaceMobile's cash burn reached $327.4 million in Q1, with an annual forecast of $1.8 billion; if this rate continues, it risks depleting much of its $3.5 billion cash reserves by year-end, posing significant financial challenges ahead.
See More
Trump Announces China to Buy U.S. Crude Oil
- U.S.-China Trade Agreement: Trump announced that China agreed to purchase U.S. crude oil, which not only helps ease trade tensions but also potentially boosts U.S. energy exports, enhancing domestic economic growth prospects.
- Positive Market Reaction: Following the trade deal announcement, the Dow Jones Industrial Average reclaimed the 50,000 mark for the first time, indicating a restoration of market confidence and likely encouraging further investments in U.S. equities.
- Strong Stock Market Performance: Despite early declines in stock futures on Friday, the S&P 500 and Nasdaq are on track for their seventh consecutive week of gains, demonstrating market resilience and investor optimism.
- Industry Dynamics: Cerebras had a stellar debut on Nasdaq, attracting significant investor attention, reflecting strong interest in the semiconductor sector, particularly against the backdrop of surging AI infrastructure investments.
See More
Trump Increases Holdings in ASTS and RKLB Stocks
- Trump's Trading Activity: Trump purchased between $1,001 and $15,000 worth of ASTS shares on March 17 and $15,001 to $50,000 in RKLB stock on January 21, indicating confidence in both space firms and potentially attracting more investor interest.
- ASTS Performance Pressure: AST SpaceMobile reported a quarterly loss wider than Wall Street estimates in its latest earnings report, and while maintaining its full-year revenue outlook, concerns over manufacturing and launch execution risks may hinder its goal of deploying 45 satellites by year-end.
- RKLB Market Performance: Rocket Lab has emerged as one of Wall Street's biggest
See More
Major U.S. Telecoms Form Joint Venture, Boost AST SpaceMobile Stock
- Stock Surge: AST SpaceMobile's stock rose over 10% following the announcement of a joint venture by AT&T, Verizon, and T-Mobile, reflecting strong market confidence in the company's growth potential.
- Strategic Importance of Joint Venture: The newly formed entity aims to expand coverage into 'dead zones' using satellite technology that AST SpaceMobile specializes in, which is expected to significantly enhance the company's market competitiveness and service range.
- Technological Edge: AST SpaceMobile's BlueBird satellites are equipped with the largest commercial antenna arrays ever deployed, achieving peak mobile data speeds of nearly 100 megabits per second, further solidifying its leadership in satellite communications.
- Optimistic Market Outlook: Although specific details of the joint venture remain undisclosed, this development is undoubtedly poised to positively impact AST SpaceMobile's business, significantly increasing the attractiveness of its stock in the market.
See More
SpaceX IPO Could Become Largest in History
- IPO Expectations: SpaceX is valued at potentially over $1 trillion and is expected to raise between $40 billion and $80 billion in its IPO, which would surpass Saudi Aramco's record $29 billion from 2020, marking a significant milestone for the space economy.
- Market Reaction: Following the IPO announcement, stocks of companies involved in the space economy surged, with Firefly Aerospace jumping 16%, and York Space Systems and Rocket Lab rising 5% and 10% respectively, indicating strong market interest in the sector.
- Sustained Rally: Since the March 25 IPO news, York Space Systems has seen a 40% increase in stock price, Rocket Lab has risen by 57%, and Intuitive Machines and Firefly Aerospace have gained 46% and 36% respectively, reflecting growing confidence in space stocks.
- Institutional Attention: Morgan Stanley's
See More
