Blue Origin to Launch TeraWave Satellite Network by Late 2027
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6d ago
0mins
Source: NASDAQ.COM
- New Competitor Emerges: Blue Origin announced plans to launch its TeraWave satellite network in Q4 2027, consisting of 5,408 optically interconnected satellites with a bandwidth of 6 terabits per second, potentially posing competition to AST SpaceMobile.
- AST Stock Decline: Following the announcement, AST SpaceMobile's shares fell by 13.4%, reflecting market concerns over its high valuation, even as it anticipates nearly $200 million in revenue by 2026, indicating strong investor expectations for space-based internet connectivity.
- Revenue Projections: AST SpaceMobile generated $14.7 million in revenue in Q3 and expects to reach $35 million to $50 million in Q4, yet its price-to-sales ratio remains around 200, highlighting the high expectations baked into its valuation.
- Market Reaction Analysis: Although Blue Origin's satellite network won't be deployed for nearly two years, the pullback in AST's stock seems more indicative of valuation issues rather than a direct competitive threat, suggesting investors should monitor future market developments.
Analyst Views on ASTS
Wall Street analysts forecast ASTS stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ASTS is 74.26 USD with a low forecast of 43.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
4 Buy
3 Hold
2 Sell
Hold
Current: 104.780
Low
43.00
Averages
74.26
High
100.00
Current: 104.780
Low
43.00
Averages
74.26
High
100.00
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.
