AST SpaceMobile Satellite Launch Failure Affects Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Should l Buy ASTS?
Source: CNBC
- Launch Failure: The launch of AST SpaceMobile's Bluebird 7 satellite on April 19, 2026, resulted in a nearly 12% drop in premarket trading, posing challenges for the company's future launch plans as it aims for 45 satellites by year-end.
- Insurance Coverage: While the satellite loss is expected to be covered by insurance, AST faces difficulties in achieving its goal of launching one satellite per month in 2026, particularly with the need to deploy 45 satellites by year-end.
- Market Reaction Analysis: William Blair analyst Louie DiPalma noted that despite the limited overall impact on AST, the experience gained from collaborating with the Blue Origin team will be crucial for future missions.
- Price Target Adjustment: Clear Street analyst Greg Pendy reiterated a buy rating while lowering the price target from $137 to $115, still anticipating a 34% increase from Friday's close, but significantly less than the previously forecasted 60% gain.
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Analyst Views on ASTS
Wall Street analysts forecast ASTS stock price to rise
8 Analyst Rating
3 Buy
4 Hold
1 Sell
Hold
Current: 78.750
Low
43.00
Averages
91.68
High
137.00
Current: 78.750
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 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 Reports Significant Revenue Growth
- Significant Revenue Growth: AST SpaceMobile's total revenue reached $70 million in 2025, a substantial increase from $4 million in 2024, with service revenues soaring from $3.9 million to $26.5 million, indicating strong growth potential in the space-based broadband network sector.
- Attractive Partnership Model: The company has established a broad customer base through partnerships with telecom giants like AT&T and Verizon, and while significant investments are still needed to support satellite launches and service expansion, this business model lays a solid foundation for future revenue growth.
- Satellite Launch Plans: AST SpaceMobile expects to launch more satellites every one to two months in 2026; although it currently has limited service capabilities, achieving global service will require deploying many more satellites, which will incur substantial upfront costs.
- Stock Price Volatility Impact: Despite a remarkable 280% increase in stock price over the past year, shares have lost more than a third of their value since peaking in January, reflecting market concerns about the company's future profitability, prompting investors to carefully assess risks and rewards.
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- Performance Review: Since Cook took over in 2011, Apple's profits have surged by 700%, with total stock returns reaching 3100%, demonstrating success in operational management and product line expansion, thereby boosting investor confidence.
- Service Business Growth: Under Cook, Apple's service revenue increased from 5% to 25%, with over 1 billion subscription users, showcasing the company's strategic success in diversifying revenue sources, which may continue to drive future growth.
- AI Challenges and Opportunities: New CEO Ternus faces the challenge of lagging AI innovation; while Apple has invested in on-device AI, market skepticism remains about its ability to launch revolutionary products, impacting investor expectations for future growth.
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Apple CEO Tim Cook to Step Down, John Ternus to Succeed
- Leadership Transition: Apple announced that CEO Tim Cook will step down in September, transitioning to executive chairman, with hardware engineering head John Ternus taking over as CEO, marking a significant shift in leadership that could impact future product innovation directions.
- Cook's Legacy: Since Tim Cook took over in 2011, Apple's total return has reached 3,100%, compared to just 731% for the S&P 500, showcasing Cook's exceptional performance in enhancing company value while setting high expectations for the new CEO.
- Service Revenue Growth: Under Cook's leadership, Apple's service revenue has surged from 5% to over 25%, with more than 1 billion paid subscriptions, indicating significant success in diversifying revenue streams, which will continue to drive profitability in the future.
- AI Innovation Challenge: Despite Cook's successes in various areas, his lag in AI innovation is seen as a major challenge for the new leadership, and Ternus's appointment may accelerate Apple's development in this critical field.
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FCC Rejects Expansion of Satellite Spectrum Access
- FCC Decision Impacts Market: The FCC's rejection of requests from satellite operators, including AST SpaceMobile, to expand access to the 1.5 GHz and 2 GHz bands confirms existing control, limiting AST's expansion plans and potentially diminishing its competitive edge in the market.
- Stock Price Decline: AST SpaceMobile's shares have dropped 8% this week, closing at $78.75 on Thursday, reflecting cautious investor sentiment in response to the FCC ruling, particularly as competition with SpaceX and Amazon intensifies.
- Satellite Launch Progress: Despite FCC restrictions, AST SpaceMobile continues to advance its next-generation satellites, with BlueBird-8 through BlueBird-10 expected to be ready for shipment within 30 days, demonstrating the company's ongoing commitment to technological development.
- Mixed Investor Sentiment: While retail sentiment for ASTS remains bullish, concerns about the stock price persist, with users on social media expressing disappointment over the lack of a clear launch schedule, which could impact future investment decisions.
See More
AST SpaceMobile Shares Surge 280% Yearly but Face Challenges Ahead
- Stock Performance: AST SpaceMobile's shares have surged 280% over the past year, significantly outperforming the S&P 500's 37% increase, indicating strong market confidence in its future potential.
- Revenue Growth: The company is projected to achieve total revenues of $70 million in 2025, a substantial rise from $4 million in 2024, with service revenues increasing from $3.9 million to $26.5 million, highlighting the sustainability of its business model.
- Satellite Launch Plans: Currently, AST SpaceMobile is focused on building and launching satellites, with plans to launch more every one to two months in 2026 to achieve global service coverage, despite the significant cost pressures involved.
- Investor Strategy: Even after a notable stock price decline, investors may still realize substantial capital gains, suggesting that taking some profits could be prudent to mitigate risk while maintaining flexibility for long-term investment.
See More
Alphabet's Investment Strategy Yields Significant Returns
- Staggering Investment Returns: Alphabet's $900 million investment in SpaceX in 2015 is projected to be worth between $107 billion and $122 billion by 2025, yielding a return of 19,400% to 22,200%, showcasing its unique investment insight and strategic value.
- Rapid Cloud Growth: Google Cloud achieved a 48% sales growth in Q4 2023, becoming the world's third-largest cloud infrastructure service platform, indicating Alphabet's strong competitiveness in cloud computing and artificial intelligence.
- AI Startup Investments: Over the past three years, Alphabet has invested more than $3 billion in Anthropic, holding approximately a 14% stake, with an expected valuation of $112 billion, reflecting a return of over 3,000% and highlighting its forward-looking positioning in AI.
- Strong Public Investment Portfolio: Alphabet purchased over 8.9 million shares of AST SpaceMobile in Q1 2025, with the stock price soaring from $25 to $85.53, representing a gain of over 200%, demonstrating the success of its public market investment strategy.
See More
AST SpaceMobile Reports Significant Revenue Growth
- Significant Revenue Growth: AST SpaceMobile's total revenue reached $70 million in 2025, a substantial increase from $4 million in 2024, with service revenues soaring from $3.9 million to $26.5 million, indicating strong growth potential in the space-based broadband network sector.
- Attractive Partnership Model: The company has established a broad customer base through partnerships with telecom giants like AT&T and Verizon, and while significant investments are still needed to support satellite launches and service expansion, this business model lays a solid foundation for future revenue growth.
- Satellite Launch Plans: AST SpaceMobile expects to launch more satellites every one to two months in 2026; although it currently has limited service capabilities, achieving global service will require deploying many more satellites, which will incur substantial upfront costs.
- Stock Price Volatility Impact: Despite a remarkable 280% increase in stock price over the past year, shares have lost more than a third of their value since peaking in January, reflecting market concerns about the company's future profitability, prompting investors to carefully assess risks and rewards.
See More
Tim Cook Steps Down as Apple CEO, New Leadership Ahead
- Leadership Transition: Apple announced that Tim Cook will step down as CEO in September, transitioning to executive chairman, with hardware engineering head John Ternus taking over, marking a significant shift in leadership that may influence future product innovation directions.
- Performance Review: Since Cook took over in 2011, Apple's profits have surged by 700%, with total stock returns reaching 3100%, demonstrating success in operational management and product line expansion, thereby boosting investor confidence.
- Service Business Growth: Under Cook, Apple's service revenue increased from 5% to 25%, with over 1 billion subscription users, showcasing the company's strategic success in diversifying revenue sources, which may continue to drive future growth.
- AI Challenges and Opportunities: New CEO Ternus faces the challenge of lagging AI innovation; while Apple has invested in on-device AI, market skepticism remains about its ability to launch revolutionary products, impacting investor expectations for future growth.
See More
Apple CEO Tim Cook to Step Down, John Ternus to Succeed
- Leadership Transition: Apple announced that CEO Tim Cook will step down in September, transitioning to executive chairman, with hardware engineering head John Ternus taking over as CEO, marking a significant shift in leadership that could impact future product innovation directions.
- Cook's Legacy: Since Tim Cook took over in 2011, Apple's total return has reached 3,100%, compared to just 731% for the S&P 500, showcasing Cook's exceptional performance in enhancing company value while setting high expectations for the new CEO.
- Service Revenue Growth: Under Cook's leadership, Apple's service revenue has surged from 5% to over 25%, with more than 1 billion paid subscriptions, indicating significant success in diversifying revenue streams, which will continue to drive profitability in the future.
- AI Innovation Challenge: Despite Cook's successes in various areas, his lag in AI innovation is seen as a major challenge for the new leadership, and Ternus's appointment may accelerate Apple's development in this critical field.
See More
FCC Rejects Expansion of Satellite Spectrum Access
- FCC Decision Impacts Market: The FCC's rejection of requests from satellite operators, including AST SpaceMobile, to expand access to the 1.5 GHz and 2 GHz bands confirms existing control, limiting AST's expansion plans and potentially diminishing its competitive edge in the market.
- Stock Price Decline: AST SpaceMobile's shares have dropped 8% this week, closing at $78.75 on Thursday, reflecting cautious investor sentiment in response to the FCC ruling, particularly as competition with SpaceX and Amazon intensifies.
- Satellite Launch Progress: Despite FCC restrictions, AST SpaceMobile continues to advance its next-generation satellites, with BlueBird-8 through BlueBird-10 expected to be ready for shipment within 30 days, demonstrating the company's ongoing commitment to technological development.
- Mixed Investor Sentiment: While retail sentiment for ASTS remains bullish, concerns about the stock price persist, with users on social media expressing disappointment over the lack of a clear launch schedule, which could impact future investment decisions.
See More
AST SpaceMobile Shares Surge 280% Yearly but Face Challenges Ahead
- Stock Performance: AST SpaceMobile's shares have surged 280% over the past year, significantly outperforming the S&P 500's 37% increase, indicating strong market confidence in its future potential.
- Revenue Growth: The company is projected to achieve total revenues of $70 million in 2025, a substantial rise from $4 million in 2024, with service revenues increasing from $3.9 million to $26.5 million, highlighting the sustainability of its business model.
- Satellite Launch Plans: Currently, AST SpaceMobile is focused on building and launching satellites, with plans to launch more every one to two months in 2026 to achieve global service coverage, despite the significant cost pressures involved.
- Investor Strategy: Even after a notable stock price decline, investors may still realize substantial capital gains, suggesting that taking some profits could be prudent to mitigate risk while maintaining flexibility for long-term investment.
See More
Alphabet's Investment Strategy Yields Significant Returns
- Staggering Investment Returns: Alphabet's $900 million investment in SpaceX in 2015 is projected to be worth between $107 billion and $122 billion by 2025, yielding a return of 19,400% to 22,200%, showcasing its unique investment insight and strategic value.
- Rapid Cloud Growth: Google Cloud achieved a 48% sales growth in Q4 2023, becoming the world's third-largest cloud infrastructure service platform, indicating Alphabet's strong competitiveness in cloud computing and artificial intelligence.
- AI Startup Investments: Over the past three years, Alphabet has invested more than $3 billion in Anthropic, holding approximately a 14% stake, with an expected valuation of $112 billion, reflecting a return of over 3,000% and highlighting its forward-looking positioning in AI.
- Strong Public Investment Portfolio: Alphabet purchased over 8.9 million shares of AST SpaceMobile in Q1 2025, with the stock price soaring from $25 to $85.53, representing a gain of over 200%, demonstrating the success of its public market investment strategy.
See More
