Japan Allocates $926 Million Subsidy for Rakuten Satellite Network
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 36 minutes ago
0mins
Source: stocktwits
- Significant Subsidy: The Japanese government plans to provide 150 billion yen (approximately $926 million) in subsidies to the Rakuten-led AST SpaceMobile satellite network, expected to be allocated over three years, which will significantly enhance domestic satellite communication infrastructure and reduce reliance on foreign networks.
- Stock Surge: Following Japan's announcement of the subsidy, AST SpaceMobile's stock surged 21% to $86.77, marking its best performance in nearly two years, reflecting strong market optimism about the project and its potential to facilitate future direct satellite communication services.
- Strategic Partnership Outlook: Rakuten plans to establish a joint venture with AST SpaceMobile in 2026 to develop a direct-to-mobile satellite network, which is expected to enable ordinary smartphones to connect directly to satellites without specialized hardware, thereby improving communication coverage.
- Regulatory Support Strengthened: Japan's communications ministry is preparing the regulatory framework for the Rakuten-AST network, with expected revisions to allow direct satellite communications in the 700 MHz band, providing essential policy support for Rakuten's satellite services and further driving market development.
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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: 71.450
Low
43.00
Averages
91.68
High
137.00
Current: 71.450
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 Shares Surge 21.44% Following Satellite Confirmation
- Satellite Confirmation Boost: AST SpaceMobile confirmed that its latest BlueBird satellites 8-10 are operational in orbit, leading to a 21.44% stock surge to $86.77, reflecting progress in building its space-based mobile network and enhancing investor confidence.
- Significant Trading Volume: The company saw trading volume reach 32.1 million shares, approximately 44% above the three-month average of 22.4 million shares, indicating heightened market interest in AST SpaceMobile's future developments, likely in anticipation of upcoming earnings and satellite launch windows.
- Future Launch Plans: AST is targeting the launch of BlueBirds 11-13 in the first half of August; despite modest Q1 revenue, the company maintained its 2026 outlook, with investors focused on whether satellite deployment can accelerate the activation of commercial services and drive larger revenue growth.
- Market Competition Analysis: In the satellite communications sector, Iridium Communications and SATS saw stock increases of 25.44% and 3.64%, respectively, demonstrating strong market interest in non-terrestrial direct-to-device connectivity, necessitating AST SpaceMobile to maintain a competitive edge to achieve its strategic objectives.
See More
Japan Allocates $926 Million Subsidy for Rakuten Satellite Network
- Significant Subsidy: The Japanese government plans to provide 150 billion yen (approximately $926 million) in subsidies to the Rakuten-led AST SpaceMobile satellite network, expected to be allocated over three years, which will significantly enhance domestic satellite communication infrastructure and reduce reliance on foreign networks.
- Stock Surge: Following Japan's announcement of the subsidy, AST SpaceMobile's stock surged 21% to $86.77, marking its best performance in nearly two years, reflecting strong market optimism about the project and its potential to facilitate future direct satellite communication services.
- Strategic Partnership Outlook: Rakuten plans to establish a joint venture with AST SpaceMobile in 2026 to develop a direct-to-mobile satellite network, which is expected to enable ordinary smartphones to connect directly to satellites without specialized hardware, thereby improving communication coverage.
- Regulatory Support Strengthened: Japan's communications ministry is preparing the regulatory framework for the Rakuten-AST network, with expected revisions to allow direct satellite communications in the 700 MHz band, providing essential policy support for Rakuten's satellite services and further driving market development.
See More
Rocket Lab Surprises with $8 Billion Iridium Acquisition
- Surprise Acquisition: Rocket Lab announced an unexpected cash-and-stock deal to acquire Iridium for $54 per share, totaling approximately $8 billion, significantly enhancing its competitive edge in satellite launch and manufacturing, with the deal expected to close by mid-2027.
- Positive Market Reaction: Following the announcement, Rocket Lab's stock surged 16% to $98.01, with analysts generally bullish; Roth Capital raised its price target to $130, indicating a 33% upside, reflecting optimism about the company's future prospects.
- Far-reaching Industry Impact: This acquisition allows Rocket Lab to integrate its launch capabilities with Iridium's global satellite communications network, positioning it as a “self-launching company” and strengthening its strategic position in aviation safety and PNT, while increasing pressure on competitors like Viasat.
- Retail Investor Sentiment Soars: On Stocktwits, retail sentiment for Rocket Lab jumped from “bullish” to “extremely bullish,” with 52% of voters in a poll considering the acquisition a “game-changer,” indicating strong investor confidence in the company's future growth.
See More
ViaSat Stock Soars 24% on Bullish Analyst Call
- Spectrum Asset Value: Analyst Horan estimates ViaSat's spectrum holdings are worth around $15 billion conservatively, with recent deals indicating potentially higher valuations, providing robust support for the company's future growth prospects.
- Stock Surge: Following Horan's 'Outperform' rating and a $140 price target, ViaSat's stock surged 24% on Monday, marking its best single-day performance since August 2025, reflecting strong market confidence in its outlook.
- Industry Optimism: The broader excitement in the satellite sector, sparked by the acquisition of Iridium by Rocket Lab, also fueled ViaSat's stock rally, indicating investor optimism about the future of the satellite market.
- Contract and Launch Success: ViaSat secured a major contract from the U.S. Space Force in 2026 and successfully launched the ViaSat-3 F3 satellite, which is expected to significantly enhance its network capacity in the Asia-Pacific region, further solidifying its market position.
See More
AST SpaceMobile Launches Three Satellites, Expands Constellation Plans
- Satellite Launch Progress: On June 17, AST SpaceMobile successfully launched its eighth, ninth, and tenth commercial satellites, BlueBirds 8, 9, and 10, marking a significant step in its low Earth orbit satellite expansion, with plans to have 45 to 60 satellites in orbit by the end of 2026, enhancing its competitive position in the market.
- Future Launch Plans: The company also announced that BlueBirds 11, 12, and 13 are in final preparations, indicating positive momentum in satellite production and launch, aiming to expand its constellation to 248 satellites to meet growing market demand.
- Market Performance Analysis: Despite encouraging progress, AST's stock price dipped post-announcement, currently at $15.34, reflecting a 35% decline from its all-time high, indicating market caution regarding its long-term growth potential.
- Revenue Growth Expectations: Analysts project AST's revenue to surge from $71 million in 2025 to $1.88 billion by 2028, with EBITDA expected to turn positive in 2027 and reach $1.39 billion in 2028, showcasing the company's strong growth potential in the coming years.
See More
AST SpaceMobile Shares Surge 21.47% Following Satellite Confirmation
- Satellite Confirmation Boost: AST SpaceMobile confirmed that its latest BlueBird satellites 8-10 are operational in orbit, leading to a 21.44% increase in stock price to $86.77, marking a significant milestone in the company's space-based mobile network development.
- Significant Volume Surge: The trading volume reached 32.1 million shares, approximately 44% above the three-month average, indicating strong investor interest and confidence in the company's future prospects.
- Upcoming Launch Window: Investors are focused on the upcoming August launch window, where BlueBirds 11-13 are expected to be critical tests that could accelerate service activation and revenue growth.
- Stable Financial Outlook: Although Q1 results showed modest revenue, the company maintained its 2026 outlook, suggesting that progress in satellite deployment may lay the groundwork for future commercial milestones.
See More
AST SpaceMobile Shares Surge 21.44% Following Satellite Confirmation
- Satellite Confirmation Boost: AST SpaceMobile confirmed that its latest BlueBird satellites 8-10 are operational in orbit, leading to a 21.44% stock surge to $86.77, reflecting progress in building its space-based mobile network and enhancing investor confidence.
- Significant Trading Volume: The company saw trading volume reach 32.1 million shares, approximately 44% above the three-month average of 22.4 million shares, indicating heightened market interest in AST SpaceMobile's future developments, likely in anticipation of upcoming earnings and satellite launch windows.
- Future Launch Plans: AST is targeting the launch of BlueBirds 11-13 in the first half of August; despite modest Q1 revenue, the company maintained its 2026 outlook, with investors focused on whether satellite deployment can accelerate the activation of commercial services and drive larger revenue growth.
- Market Competition Analysis: In the satellite communications sector, Iridium Communications and SATS saw stock increases of 25.44% and 3.64%, respectively, demonstrating strong market interest in non-terrestrial direct-to-device connectivity, necessitating AST SpaceMobile to maintain a competitive edge to achieve its strategic objectives.
See More
Japan Allocates $926 Million Subsidy for Rakuten Satellite Network
- Significant Subsidy: The Japanese government plans to provide 150 billion yen (approximately $926 million) in subsidies to the Rakuten-led AST SpaceMobile satellite network, expected to be allocated over three years, which will significantly enhance domestic satellite communication infrastructure and reduce reliance on foreign networks.
- Stock Surge: Following Japan's announcement of the subsidy, AST SpaceMobile's stock surged 21% to $86.77, marking its best performance in nearly two years, reflecting strong market optimism about the project and its potential to facilitate future direct satellite communication services.
- Strategic Partnership Outlook: Rakuten plans to establish a joint venture with AST SpaceMobile in 2026 to develop a direct-to-mobile satellite network, which is expected to enable ordinary smartphones to connect directly to satellites without specialized hardware, thereby improving communication coverage.
- Regulatory Support Strengthened: Japan's communications ministry is preparing the regulatory framework for the Rakuten-AST network, with expected revisions to allow direct satellite communications in the 700 MHz band, providing essential policy support for Rakuten's satellite services and further driving market development.
See More
Rocket Lab Surprises with $8 Billion Iridium Acquisition
- Surprise Acquisition: Rocket Lab announced an unexpected cash-and-stock deal to acquire Iridium for $54 per share, totaling approximately $8 billion, significantly enhancing its competitive edge in satellite launch and manufacturing, with the deal expected to close by mid-2027.
- Positive Market Reaction: Following the announcement, Rocket Lab's stock surged 16% to $98.01, with analysts generally bullish; Roth Capital raised its price target to $130, indicating a 33% upside, reflecting optimism about the company's future prospects.
- Far-reaching Industry Impact: This acquisition allows Rocket Lab to integrate its launch capabilities with Iridium's global satellite communications network, positioning it as a “self-launching company” and strengthening its strategic position in aviation safety and PNT, while increasing pressure on competitors like Viasat.
- Retail Investor Sentiment Soars: On Stocktwits, retail sentiment for Rocket Lab jumped from “bullish” to “extremely bullish,” with 52% of voters in a poll considering the acquisition a “game-changer,” indicating strong investor confidence in the company's future growth.
See More
ViaSat Stock Soars 24% on Bullish Analyst Call
- Spectrum Asset Value: Analyst Horan estimates ViaSat's spectrum holdings are worth around $15 billion conservatively, with recent deals indicating potentially higher valuations, providing robust support for the company's future growth prospects.
- Stock Surge: Following Horan's 'Outperform' rating and a $140 price target, ViaSat's stock surged 24% on Monday, marking its best single-day performance since August 2025, reflecting strong market confidence in its outlook.
- Industry Optimism: The broader excitement in the satellite sector, sparked by the acquisition of Iridium by Rocket Lab, also fueled ViaSat's stock rally, indicating investor optimism about the future of the satellite market.
- Contract and Launch Success: ViaSat secured a major contract from the U.S. Space Force in 2026 and successfully launched the ViaSat-3 F3 satellite, which is expected to significantly enhance its network capacity in the Asia-Pacific region, further solidifying its market position.
See More
AST SpaceMobile Launches Three Satellites, Expands Constellation Plans
- Satellite Launch Progress: On June 17, AST SpaceMobile successfully launched its eighth, ninth, and tenth commercial satellites, BlueBirds 8, 9, and 10, marking a significant step in its low Earth orbit satellite expansion, with plans to have 45 to 60 satellites in orbit by the end of 2026, enhancing its competitive position in the market.
- Future Launch Plans: The company also announced that BlueBirds 11, 12, and 13 are in final preparations, indicating positive momentum in satellite production and launch, aiming to expand its constellation to 248 satellites to meet growing market demand.
- Market Performance Analysis: Despite encouraging progress, AST's stock price dipped post-announcement, currently at $15.34, reflecting a 35% decline from its all-time high, indicating market caution regarding its long-term growth potential.
- Revenue Growth Expectations: Analysts project AST's revenue to surge from $71 million in 2025 to $1.88 billion by 2028, with EBITDA expected to turn positive in 2027 and reach $1.39 billion in 2028, showcasing the company's strong growth potential in the coming years.
See More
AST SpaceMobile Shares Surge 21.47% Following Satellite Confirmation
- Satellite Confirmation Boost: AST SpaceMobile confirmed that its latest BlueBird satellites 8-10 are operational in orbit, leading to a 21.44% increase in stock price to $86.77, marking a significant milestone in the company's space-based mobile network development.
- Significant Volume Surge: The trading volume reached 32.1 million shares, approximately 44% above the three-month average, indicating strong investor interest and confidence in the company's future prospects.
- Upcoming Launch Window: Investors are focused on the upcoming August launch window, where BlueBirds 11-13 are expected to be critical tests that could accelerate service activation and revenue growth.
- Stable Financial Outlook: Although Q1 results showed modest revenue, the company maintained its 2026 outlook, suggesting that progress in satellite deployment may lay the groundwork for future commercial milestones.
See More
