SpaceX (NASDAQ:SPCX | SPCX Price Prediction) stock is sinking 5% Friday to $112.59, leaving the rocket maker 17% below its $135 June IPO price. The stock is sliding just hours before Starship attempts its 13th test flight tonight, a launch that could determine whether SpaceX’s costly pivot away from Falcon 9 pays off.
Rocket Lab (NASDAQ:RKLB) stock is falling harder, down 7% to $65.27, while AST SpaceMobile (NASDAQ:ASTS) stock is slipping 4% to $56.94. Neither company faces a company-specific catalyst today, and the selling looks more like a sympathy trade tied to SpaceX’s own troubles than a verdict on either business.
SpaceX’s Big Bet on Tonight’s Starship Test SpaceX has reportedly stopped taking new Falcon 9 bookings for dedicated satellite launches beyond 2028 and isn’t accepting reservations for its Falcon 9 rideshare program. The company has also reportedly halted production of some non-reusable Falcon hardware, including the upper stage that carries cargo, while Falcon 9 continues to support certain NASA and U.S. Department of Defense missions.
Tonight marks Starship’s third launch attempt in nine days, following a July 16 engine abort and a weather scrub last Thursday, with the window opening at 6:45 p.m. EDT at Starbase, Texas. A successful flight would be the first real validation of the reusability plan underpinning SpaceX’s push to retire Falcon 9, while another setback would deepen doubts about that timeline.
Rocket Lab and AST SpaceMobile Get Caught in the Downdraft AST SpaceMobile raised $1.15 billion through convertible notes to fund growth and secure launch capacity, a move that underscores how dependent the company remains on SpaceX. SpaceX has launched most of AST SpaceMobile’s satellite fleet and is expected to carry its next batch, even though SpaceX’s own Starlink network competes with AST SpaceMobile in direct-to-cell service.
Rocket Lab stock, by contrast, could ultimately benefit from tighter Falcon 9 availability, since its own reusable Neutron rocket recently completed a key engine test and could attract customers if Starship faces further delays. AST SpaceMobile stock is essentially flat over the past year, up just 0.4%, while Rocket Lab stock remains up 42% over that same span even after today’s decline.
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What Tonight’s Launch Needs to Go Right Tonight’s flight will test whether SpaceX’s Super Heavy booster can complete a clean launch, stage separation, and a controlled return to an offshore landing point in the Gulf of Mexico. Starship itself needs to deploy 20 next-generation Starlink V3 satellites and complete its own controlled descent to a splashdown in the Indian Ocean, with several of the satellites carrying cameras to scan the heat shield during reentry.
Traders on Polymarket price an 81% chance of a successful launch tonight and a 72% chance of a controlled splashdown for Starship, odds that suggest confidence but hardly a sure thing. Raymond James analyst Brian Gesuale stated that “Starship becoming operational is the critical path to the SpaceX investment thesis,” a view that puts tonight’s test at the center of the bull case.
What to Watch Now For investors who don’t want to pick a single winner among SpaceX, Rocket Lab, and AST SpaceMobile stock, the Procure Space ETF (NASDAQ:UFO) offers diversified exposure to the space sector. The ETF is down just 1.5% today to $43.05, a milder decline that highlights the benefit of diversification, though the fund still carries concentration risk given its narrow focus on the space industry.
SpaceX stock appears to be the riskiest of the three names tonight, given its direct exposure to the test outcome, an approaching August 6 share lock-up expiration, and short interest that has reportedly grown to 32%. Rocket Lab stock and AST SpaceMobile stock face more indirect risk, since their declines today stem mainly from sentiment rather than any company-specific setback.
Given how much rides on a single rocket test, investors might choose to keep their position sizes modest across all three names until tonight’s outcome is clear. Investors can watch for whether Starship completes tonight’s flight and how SpaceX stock reacts heading into its August 4 earnings call and the August 6 lock-up expiration that follows.
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, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of AST SpaceMobile, Inc. ("AST" or the "Company") (NASDAQ: ASTS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether AST and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On January 7, 2026, Scotiabank downgraded AST to Sell, citing, among other things, significant competition from SpaceX's Starlink, slow customer adoption, and delays in launching AST's satellites.
Following the downgrade, AST's stock price fell $11.76 per share, or 12.06%, to close at $85.73 per share on January 7, 2026.
Then, on July 15, 2026, AST issued a press release "announc[ing] the pricing of $1.0 billion aggregate principal amount of 1.625% convertible senior notes due 2034".
On this news, AST's stock price fell $11.30 per share, or 17.04%, to close at $55.01 per share on July 16, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
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AST SpaceMobile, Inc. (ASTS - Free Report) ended the recent trading session at $61.95, demonstrating a -2.19% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 0.14%. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 0.57%.
The company's stock has dropped by 13.08% in the past month, falling short of the Computer and Technology sector's loss of 4.82% and the S&P 500's gain of 0.25%.
Investors will be eagerly watching for the performance of AST SpaceMobile, Inc. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of -$0.28, marking a 31.71% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $34.13 million, indicating a 2842.24% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.38 per share and revenue of $163.68 million. These totals would mark changes of -2.99% and +130.8%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for AST SpaceMobile, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 5.55% higher. Right now, AST SpaceMobile, Inc. possesses a Zacks Rank of #3 (Hold).
The Wireless Equipment industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 69, placing it within the top 29% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
California Public Employees Retirement System cut its holdings in AST SpaceMobile, Inc. (NASDAQ:ASTS – Free Report) by 5.0% during the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 350,929 shares of the company’s stock after selling 18,426 shares during the period. California Public Employees Retirement System owned about 0.09% of AST SpaceMobile worth $29,081,000 at the end of the most recent quarter.
Other large investors have also added to or reduced their stakes in the company. Crewe Advisors LLC acquired a new stake in AST SpaceMobile in the 4th quarter valued at $25,000. Laurel Wealth Advisors LLC bought a new stake in AST SpaceMobile during the 4th quarter worth about $25,000. Cornerstone Planning Group LLC boosted its stake in shares of AST SpaceMobile by 16,350.0% during the 1st quarter. Cornerstone Planning Group LLC now owns 329 shares of the company’s stock worth $27,000 after buying an additional 327 shares during the last quarter. Byrne Asset Management LLC acquired a new position in shares of AST SpaceMobile during the 4th quarter worth about $29,000. Finally, Acumen Wealth Advisors LLC bought a new position in shares of AST SpaceMobile in the 4th quarter valued at about $29,000. Institutional investors and hedge funds own 60.95% of the company’s stock.
Wall Street Analysts Forecast Growth Several analysts recently issued reports on ASTS shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of AST SpaceMobile in a report on Wednesday, June 24th. Wall Street Zen downgraded AST SpaceMobile from a “sell” rating to a “strong sell” rating in a research note on Wednesday, April 15th. Piper Sandler started coverage on AST SpaceMobile in a research report on Wednesday, July 15th. They set an “overweight” rating and a $100.00 price target on the stock. Deutsche Bank Aktiengesellschaft cut AST SpaceMobile from a “buy” rating to a “hold” rating and dropped their price objective for the stock from $117.00 to $106.00 in a research note on Friday, May 29th. Finally, New Street Research set a $106.00 target price on shares of AST SpaceMobile in a research note on Friday, May 29th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, five have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $86.95.
View Our Latest Stock Analysis on AST SpaceMobile
AST SpaceMobile Trading Up 10.3% Shares of NASDAQ:ASTS opened at $63.34 on Wednesday. AST SpaceMobile, Inc. has a 52-week low of $36.08 and a 52-week high of $133.86. The company has a market capitalization of $24.58 billion, a P/E ratio of -35.58 and a beta of 2.69. The company has a 50-day simple moving average of $86.07 and a 200 day simple moving average of $89.05. The company has a debt-to-equity ratio of 1.11, a quick ratio of 18.37 and a current ratio of 18.47.
AST SpaceMobile (NASDAQ:ASTS – Get Free Report) last posted its quarterly earnings results on Monday, May 11th. The company reported ($0.66) EPS for the quarter, missing analysts’ consensus estimates of ($0.23) by ($0.43). The business had revenue of $14.73 million for the quarter, compared to the consensus estimate of $39.01 million. AST SpaceMobile had a negative return on equity of 24.87% and a negative net margin of 573.67%.The company’s revenue for the quarter was up 1952.2% on a year-over-year basis. During the same quarter in the previous year, the business posted ($0.20) EPS. Sell-side analysts forecast that AST SpaceMobile, Inc. will post -1.38 earnings per share for the current year.
Insider Transactions at AST SpaceMobile In related news, CTO Huiwen Yao sold 40,000 shares of the business’s stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $96.37, for a total transaction of $3,854,800.00. Following the transaction, the chief technology officer directly owned 34,750 shares of the company’s stock, valued at approximately $3,348,857.50. The trade was a 53.51% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Andrew Martin Johnson sold 45,809 shares of the stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $93.81, for a total value of $4,297,342.29. Following the completion of the sale, the chief financial officer owned 503,619 shares in the company, valued at approximately $47,244,498.39. This trade represents a 8.34% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 105,809 shares of company stock worth $9,748,492. 20.89% of the stock is owned by company insiders.
Key Headlines Impacting AST SpaceMobile Here are the key news stories impacting AST SpaceMobile this week:
Positive Sentiment: AST SpaceMobile completed a private offering of $1.15 billion of convertible senior notes due 2034, giving the company significant added capital to fund satellite deployment and operations. AST SpaceMobile Announces Completion of Private Offering of $1.15 Billion of Convertible Senior Notes Due 2034 Positive Sentiment: The stock is also benefiting from a broader risk-on move in space names, with investors rotating back into speculative aerospace and satellite stocks. AST SpaceMobile Catapults 12%, SpaceX Rises 7%, Virgin Galactic and Rocket Lab Rally as Space Stock Trade Takes a Risk-on Turn Positive Sentiment: Some analysts and market commentators are framing the recent pullback as an opportunity, arguing the new funding strengthens ASTS’s ability to pursue its long-term satellite network buildout. AST SpaceMobile: Convertible Notes Accelerate Its Full Potential (Rating Upgrade) Neutral Sentiment: AST SpaceMobile is also getting attention from a Midland factory expansion approval tied to its local footprint, which could support future manufacturing capacity but does not have an immediate financial impact. ASTS Stock Jumps Premarket: Midland Approves Factory Nearly 5x Larger Than AST SpaceMobile’s Original Plant Negative Sentiment: Bearish commentary is also weighing on sentiment, including Jim Cramer’s view that AST SpaceMobile is “losing a fortune”, reinforcing concerns about cash burn and execution risk. ‘That Thing Has Just Been Crushed’: Cramer On This Tech Stock Negative Sentiment: Separately, Pomerantz LLP announced an investigation on behalf of ASTS investors, which could add legal overhang and uncertainty for shareholders. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of AST SpaceMobile, Inc. – ASTS AST SpaceMobile Profile (Free Report)
AST SpaceMobile is a U.S.-based aerospace company developing a space-based cellular broadband network designed to connect standard mobile phones and other devices directly to satellites. The company’s core proposition is “space-to-cell” service: operating a constellation of low-Earth-orbit (LEO) satellites equipped with large, high-power phased-array antennas to provide wide-area mobile broadband without requiring users to buy specialized terminals or handset modifications.
AST SpaceMobile designs, builds and operates satellite payloads and supporting ground infrastructure.
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NEW YORK, July 21, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of AST SpaceMobile, Inc. (“AST” or the “Company”) (NASDAQ: ASTS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether AST and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On January 7, 2026, Scotiabank downgraded AST to Sell, citing, among other things, significant competition from SpaceX’s Starlink, slow customer adoption, and delays in launching AST’s satellites.
Following the downgrade, AST’s stock price fell $11.76 per share, or 12.06%, to close at $85.73 per share on January 7, 2026.
Then, on July 15, 2026, AST issued a press release “announc[ing] the pricing of $1.0 billion aggregate principal amount of 1.625% convertible senior notes due 2034”.
On this news, AST’s stock price fell $11.30 per share, or 17.04%, to close at $55.01 per share on July 16, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
With high-profile launches and increased investments, the space economy appears to be entering a growth phase. And although it can be hard to put a value on space operations, Morgan Stanley (MS +1.89%) seems to think the space economy is on its way to a trillion-dollar market by 2040.
Whether the space economy hits that mark over the next 14 years remains to be seen, but there's no doubt it's growing, with runway ahead. For investors looking to hop on the train, three companies poised to benefit are Space Exploration Technologies (SPCX +2.79%) (also known as SpaceX), AST SpaceMobile (ASTS +9.21%), and Lockheed Martin (LMT 0.89%).
Image source: Getty Images.
How Morgan Stanley sees the space economy evolving Looking back a decade, Morgan Stanley divided the space economy into four broad segments, and here's how much revenue they each generated:
SegmentRevenueMarket ShareGround Equipment$113 billion33.33%Consumer TV$98 billion28.91%Government$84 billion24.78%Other$44 billion12.98% Data source: Morgan Stanley.
Ground equipment includes satellite dishes and GPS systems; consumer TV is traditional satellite TV services; and government covers defense spending and other manufacturing.
By 2040, when Morgan Stanley estimates the space industry will be worth $1 trillion, it sees two key categories emerging: internet and consumer broadband. If this plays out, it shows a shift toward connectivity, with the internet and consumer broadband emerging as key segments.
SegmentRevenueMarket ShareInternet$412 billion39.13%Ground Equipment$196 billion18.61%Government$181 billion17.19%Consumer TV$117 billion11.11%Consumer Broadband$95 billion9.02%Other$52 billion4.94% Data source: Morgan Stanley.
1. SpaceX is the marquee space company SpaceX is arguably the most important company in the space economy. To begin, it launches more satellites, cargo, and rockets than any other space company by a wide margin. In fact, it launches more than every other space company combined.
The company is also a pioneer in developing reusable rockets, helping to reduce launch costs and shorten the time between missions. It's a competitive advantage, but developments will also lift the tide and help the broader space industry.
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Rocket launches are a huge part of SpaceX's business, but one of its key moneymakers is Starlink, its satellite internet and connectivity business. If Morgan Stanley's estimates are correct and space internet and broadband become $507 billion industries, SpaceX is in a great position to capture a large share of the market.
SpaceX's stock is extremely expensive right now after its initial public offering, so it's one I'd keep an eye on but be cautious of for the time being.
Image source: The Motley Fool.
2. AST SpaceMobile is aiming to revolutionize your cellular service AST SpaceMobile isn't quite a household name like SpaceX, but it's becoming a key player in advancing satellite broadband services. Right now, it's in its early stages and still releasing its satellite foundation, but AST SpaceMobile aims to become the direct-to-device satellite cellular service. Think: cell towers in space.
Instead of reaching customers directly, AST SpaceMobile will use mobile network operators, such as AT&T and Verizon Communications, for distribution. It's a revenue-sharing agreement that instantly gives AST SpaceMobile access to millions of consumers. Its commercial service is projected to begin in 2027.
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AST SpaceMobile is still an unproven company that's operating at a loss, so there's risk with the stock. However, if you're a believer in the eventual scaling of space-based broadband networks, AST SpaceMobile is a compelling choice. The stock is extremely volatile right now, so there's no need to rush and invest, but it's worth keeping an eye on.
3. Lockheed Martin has a growing space business Lockheed Martin is best known as a defense contractor, but within that is a growing space business. It makes missile warning systems, military satellites, GPS satellites, and other vital hardware. In the first quarter, its Space segment's $3.43 billion in revenue accounted for 19% of its total revenue.
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If government space spending is expected to reach $181 billion by 2040, Lockheed Martin is well-positioned to capture a sizable share as one of the government's most reliable defense contractors.
Military defense aside, Lockheed Martin was also the main contractor for NASA's Orion spacecraft, which was responsible for the famous Artemis II Mission that took astronauts farther from Earth than any human had ever gone. That shows Lockheed Martin is more than a weapons builder and could become a go-to partner for NASA going forward.
Lockheed Martin isn't a stock that's likely to experience high growth, but its dividend is routinely at least double the S&P 500 average.
AST SpaceMobile, Inc. (â[url="]AST SpaceMobile[/url]â) (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network acces
MIDLAND, Texas--(BUSINESS WIRE)--AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones, designed for both commercial and government applications, today announced the closing of $1.0 billion aggregate principal amount of 1.625% convertible senior notes due 2034 (the “notes”), and the exercise in full of the initial purchasers' option to purchase an additional $150.0 mill.
AST SpaceMobile, known for building a space-based cellular broadband network, recently priced its $1 billion proposed public offering of convertible senior notes.
Fiserv, Inc. (NASDAQ:FISV), meanwhile, has to merge with another company, Cramer said. The company provides payment processing and digital banking, and there are far too many companies in that sector, he added.
Fiserv said it will announce its second quarter financial results before the opening bell on Thursday, Aug. 6.
Cramer said Lyft (NASDAQ:LYFT) CEO David Risher is doing a good job. “It’s been trading back and forth and back and forth, but $15 is a good level to start,” he added.
On the earnings front, Lyft said it will release financial results for the second quarter after the close of the market on Thursday, Aug. 6.
CleanSpark, on July 14, announced it entered into a $6.6 billion, 20-year lease with a global technology company.
“That thing has just been crushed,” Cramer said when asked about First Solar (NASDAQ:FSLR) “It has one of the worst charts I’ve ever seen.”
First Solar said it will report financial results for the second quarter after the market closes on Thursday, July 30.
Lending support to his choice, Citigroup analyst Jon Tower, on July 10, maintained Cheesecake Factory with a Buy and raised the price target from $76 to $90.
Price Action Fiserv shares gained 2.1% to settle at $51.68 on Monday. Lyft shares fell 0.6% to close at $15.43 during the session. CleanSpark shares jumped 10.7% to settle at $14.42 on Monday. First Solar shares declined 3.2% to close at $205.31. Cheesecake Factory shares gained 0.4% to settle at $86.11 on Monday. AST SpaceMobile shares fell 0.7% to settle at $57.42 on Monday. Photo via Shutterstock
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of ASTS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Space Exploration Technologies Corp (SPCX 1.05%), more commonly referred to as just SpaceX, is easily the most valuable space stock in the world, with a market cap of $1.6 trillion. Many investors are willing to look past its high valuation due to expectations of significant growth in the years ahead.
But what might surprise you is that in the next couple of years, there's a space stock that analysts expect will actually grow at a faster rate than SpaceX, and that's AST SpaceMobile (ASTS +0.97%).
Image source: Getty Images.
AST SpaceMobile is much smaller but growing at an extremely fast rate Last year, SpaceX reported nearly $19 billion in revenue, while AST SpaceMobile generated just under $71 million. Unlike SpaceX, which has a broad business focused on rockets, artificial intelligence (AI), and telecom, AST SpaceMobile is focused on creating a global space-based broadband network.
Its scope is much smaller, but its growth is expected to pick up significantly. According to LSEG data, analysts expect AST SpaceMobile's revenue to reach nearly $2 billion by 2028, up from $166 million this year, which translates into a compounded annual growth rate (CAGR) of around 246%. SpaceX, by comparison, is expected to average a CAGR of nearly 69% over the next couple of years, with its revenue projected to total more than $103 billion in 2028.
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Both stocks are expensive, risky buys AST SpaceMobile may be expected to rise at a far faster rate than SpaceX, but that doesn't necessarily make it a better buy. At a market cap of around $23 billion, investors are still paying a big premium for the business, as that valuation translates into a price-to-sales (P/S) multiple of nearly 190. SpaceX, by comparison, trades at about 80 times revenue. While neither stock is cheap, SpaceX is more attractively valued based on its revenue.
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The danger of investing in either one of these stocks is that they can be highly volatile and speculative, as their valuations depend more on future expectations than on what they have achieved thus far.
SpaceX has been struggling recently despite a strong rally out of the gate, and has now dipped below its IPO price. Shares of AST SpaceMobile are down about 20% thus far in 2026, as investors may be having second thoughts about its valuation. Both stocks, while they do have some promising upside, also have plenty of room to fall further. Investors should tread carefully with them.
The initial public offering (IPO) of Space Exploration Technologies (SPCX 2.21%) may have marked a near-term peak in space-economy stocks. Many companies in the sector have fallen precipitously over the last month, including huge 2025 winner AST SpaceMobile (ASTS 1.66%).
Now, the direct-to-device satellite internet business aiming to revolutionize connectivity is raising $1 billion through a convertible bond offering, sending shares down nearly 60% from highs. However, at a share price of around $55 today, I still would not add AST SpaceMobile to my portfolio. Here's why.
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Massive opportunity in satellite internet AST SpaceMobile has the audacious goal of being the first company to fully commercialize high-speed satellite internet beamed directly to smartphones. This means that, unlike with current satellite internet services like Starlink, a person will not need a bulky satellite dish to obtain an internet connection to their devices. Starlink already generates over $10 billion in revenue, so if a company can improve on the service, you could see an explosion in adoption that disrupts the entire wireless internet sector.
Investors initially balked at this idea, as it had never been done before. However, over the last few years, AST SpaceMobile has proven that its technology can work with its massive BlueBird satellites. Seeing the technology getting proven, along with the hype around the incoming SpaceX IPO over the last year, sent AST SpaceMobile stock from $3 in 2024 to a peak of over $100 a share in 2026.
Now, the air has begun to come out of the space economy investing theme, with AST SpaceMobile stock down to around $55 as of this writing.
Image source: Getty Images.
Major competition and operational risks In the last few years, AST SpaceMobile has begun launching its satellites into orbit, partnering with Blue Origin and its potential competitor, SpaceX. It has nine operational satellites in orbit, including three launched by SpaceX. Manufacturing facilities in Texas are producing the remaining 90 or more satellites to create a full constellation in low Earth orbit, which AST SpaceMobile hopes will be launched in a timely manner.
This manufacturing ramp has already led to significant cash burn for AST SpaceMobile, with free cash flow of negative $1.37 billion over the last 12 months. Getting all its satellites to orbit will be expensive, which is why AST SpaceMobile just raised another $1 billion in a convertible bond offering. Plus, there is no guarantee launches will go as planned, with a recent Blue Origin mission misplacing an AST SpaceMobile satellite in orbit. Blue Origin's launchpad recently blew up, too, which will decrease the supply of payload capacity to send objects to orbit in a time when there is massive demand in the satellite industry.
On top of these launch risks, AST SpaceMobile will face competition from SpaceX in the direct-to-device internet market. According to SpaceX and Elon Musk, Starlink is working to deliver direct mobile connectivity to global users in the years ahead, capabilities that could match those AST SpaceMobile can provide customers. This could be a major issue for AST SpaceMobile, since SpaceX is one of its launch partners for BlueBird satellites.
Even if you believe AST SpaceMobile can defeat the mighty SpaceX and the tens of billions it raised in its IPO (along with its vertically integrated launch capabilities), the stock still looks overvalued today.
With a market value of $21 billion, huge cash burn, and a lot of debt beginning to pile up on the liabilities side of the balance sheet, AST SpaceMobile will have an enterprise value of $25 billion or more in the years ahead, based on the current share price, especially if you factor in continuing shareholder dilution.
Over the last 12 months, the company has generated less than $100 million in revenue. A full-scale direct-to-device satellite internet business may be able to generate $1 billion in revenue in the near future, but that would still make the stock overvalued relative to its current share price.
With likely a decade's worth of growth priced into shares today, even if its business strategy is successful, investors should avoid buying the dip on AST SpaceMobile stock.
AST SpaceMobile (ASTS +5.07%) has an interesting business model. The company aims to compete with Space Exploration Technologies' (SPCX 5.41%) Starlink service, but it has gone down a very different path. While the planned launch of AST SpaceMobile's commercial service has been pushed back to early 2027, it could get off to a big start. Here's what you need to know.
Going it alone versus partnering up Starlink is the most profitable business unit within SpaceX, as the company's IPO prospectus revealed. Once again, Elon Musk's vision has resulted in a company he controls getting in early on an investment opportunity. However, other companies are looking to break into the market for satellite-based cellular broadband communications, including AST SpaceMobile. Starlink was so early that it basically had to develop its own, direct-to-consumer technology and services. AST SpaceMobile is partnering with cellphone companies.
Image source: Getty Images.
This is a major point of differentiation. Not only does AST SpaceMobile have deals with companies that can help fund its expansion, but it also has a built-in customer base. Essentially, customers of cellphone providers like AT&T (T 0.77%) and Verizon (VZ 0.71%) can add AST SpaceMobile's service to their existing plans once it's up and running.
A $1 billion opportunity In the first quarter of 2026, AST SpaceMobile generated revenues of around $15 million. Most of that came from contracts with the U.S. government, which also wants access to the company's satellite network. However, after launching its commercial service, the company believes it can generate up to $1 billion in revenue in 2027.
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Strong execution will be vital for this space stock. It still has to build and launch more satellites to get its service up and running. And even after it begins operating its service in limited markets, it still has more to do if it wants to cover the entire globe. Investors aren't as enthusiastic about the company's prospects as they were, noting that the stock is in the middle of a nerely 60% drawdown right now.
Hitting the ground running As a money-losing start-up, that's actually not shocking. Only the most aggressive investors should consider AST SpaceMobile right now. That said, if the company can go from $15 million in quarterly revenue to an annual run rate of around $1 billion as quickly as it believes it can, Wall Street will likely reward it with a higher price once it starts selling its service to consumers.
Only the proof of that ability, driven by its partnership-based model, won't come until the company actually launches its service. Most investors should probably watch from the sidelines until the service is up and running. More aggressive types, however, may see this dip as an opportunity to jump aboard a business that is likely to hit the ground running when it eventually launches.
Investors seeking exposure to future-leaning technologies often weigh the potential of urban air mobility against satellite-to-phone connectivity when comparing Archer Aviation (ACHR 0.78%) and AST SpaceMobile (ASTS +5.07%) for their growth portfolios.
Archer Aviation focuses on "flying taxis" to bypass ground traffic, while AST SpaceMobile aims to eliminate global dead zones by providing satellite cellular service. Both companies represent ambitious, capital-intensive bets on infrastructure. Choosing between them requires understanding their different paths to regulatory approval, their distinct manufacturing hurdles, and their current financial health as they move toward commercial scale.
The case for Archer AviationArcher Aviation develops electric vertical takeoff and landing (eVTOL) aircraft for commercial and military use. This growth among industrial stocks is anchored by the United Purchase Agreement, providing for the conditional purchase of up to $1.0 billion in Midnight aircraft from United Airlines Holdings (UAL 2.86%). The company also partners with the U.S. Air Force and Stellantis (STLA 2.85%) for manufacturing support.
In FY 2025, Archer Aviation reported revenue of $300,000. This early-stage revenue was accompanied by a net loss of approximately $618.2 million. This reflects a company still in its pre-commercial phase as it pursues aircraft type and production certification.
As of its December 2025 balance sheet, the debt-to-equity ratio is roughly 0.1x. This ratio measures total debt, including short- and long-term obligations, against shareholders' equity, with a lower number indicating less reliance on borrowed money. Free cash flow was negative at $511.7 million, representing the cash remaining after operating and capital spending are covered.
The case for AST SpaceMobileAST SpaceMobile builds a space-based cellular broadband network that connects standard smartphones directly to satellites. Its model relies on strategic partnerships with mobile network operators like AT&T (T 0.77%) and Verizon Communications (VZ 0.66%). These agreements provide access to nearly 3 billion subscribers globally through the partner network, bypassing the need for traditional customer acquisition.
In FY 2025, revenue reached approximately $70.9 million, a substantial jump from the $4.4 million reported in the prior fiscal year. The company reported a net loss of nearly $342 million for the period. While revenue growth is accelerating as the company begins its commercial rollout, profitability remains a distant goal during this build-out phase.
The current debt-to-equity ratio is roughly 1.2x, showing the company relies more on debt than equity to fund its operations. Free cash flow, which is cash flow from operations minus capital expenditures, was more than negative $1.1 billion for FY 2025, reflecting heavy investment in its satellite constellation.
Risk profile comparisonArcher Aviation faces substantial regulatory certification risk, as it must secure FAA type and production certificates before launching commercial service. The business is highly capital-intensive, requiring frequent cash infusions that could lead to dilution or debt. It also faces competition from well-funded aerospace incumbents like Boeing Co. (BA 0.14%) and other eVTOL developers.
AST SpaceMobile depends on the successful launch and deployment of satellites, where any malfunction could delay service or cause total losses. The company relies heavily on mobile network operators to market its services, creating a dependency on third-party performance. Furthermore, it competes against established providers like Amazon.com Inc (AMZN 0.91%) and regional satellite providers in the race for global connectivity.
Valuation comparisonBased on future earnings estimates and the Forward P/E ratio, Archer Aviation looks more affordable than AST SpaceMobile despite its higher P/S ratio.
MetricArcher AviationAST SpaceMobileSector BenchmarkForward P/En/an/a240.6xP/S ratio1,160x177xSector benchmark uses the SPDR XLI sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Last year, the U.S. federal government created the framework for real-world testing of eVTOL aircraft, a concrete step toward making Archer's vision a reality. Japan, South Korea, and Saudi Arabia are other countries building similar regulatory frameworks. A lot still has to happen for Archer’s aircraft to get into the skies, but the notion that the nation's airspace is being regulated in a way that is holding back growth is one that has found favor.
Archer is taking steps to refurbish a small Los Angeles airport for use as its testing grounds and is working to scale up its manufacturing capabilities to eventually reach capacity for 50 planes a year. Management has an initial plan to focus on military and cargo uses for its plane, which would be an easier path to early revenue. It's highly speculative, but Wall Street analysts see Archer turning its first profit in 2030, with $2.3 billion in revenue, but a lot has to go right between now and then.
AST SpaceMobile is a very different business from Archer. Essentially, AST SpaceMobile is a direct-to-device play, providing full mobile phone compatibility with major carriers without the need for specialized equipment. Many of its potential clients are also shareholders in the company, including AT&T, Verizon, Vodafone (VOD +0.74%), Alphabet (GOOGL 2.05%), American Tower (AMT +0.68%), Telus (TU 1.79%), Bell Canada, and Rakuten.
By the end of the year, the company expects to have 45 satellites in orbit, which will allow it to fully service the U.S., and that should start to supercharge revenue growth. For fiscal 2026, Wall Street sees $149 million in sales, jumping to $725 million the following year, when the company is projected to turn its first modest profit. Free cash flow appears much more manageable, with analysts expecting positive free cash flow in 2029.
Air taxis and electric planes are promising businesses for Archer, but the airline business has shown that there are very few competitive moats in the long run. Coupled with its long runway to significant revenue generation, it’s a wait-and-see stock right now.
AST SpaceMobile, on the other hand, does have the burden of very high capital expenditures right now, but it has a fairly high competitive moat for its space-based network. Its roster of telco investors and quick path to revenue growth starting next year make it the stock to buy in 2026.
Ending the week on a bullish note, AST SpaceMobile (ASTS +5.25%) stock closed higher today after an analyst provided an optimistic outlook. Shares of AST SpaceMobile, a developer of a space-based cellular broadband service, had fallen 10.6% from the end of trading last Friday through yesterday's close.
Today, however, shares of AST SpaceMobile closed up 5.1%, retreating from an earlier rise of 12.1%.
Image source: Getty Images.
One analyst sees this space stock flying notably higher Maintaining his $85 price target on AST SpaceMobile, B. Riley analyst Mike Crawford upgraded AST SpaceMobile stock to buy from neutral today. With shares falling more than 50% over the past six months, Crawford now believes that AST SpaceMobile stock provides investors with a better risk/reward profile, according to Thefly.com.
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Based on AST SpaceMobile stock closing at $55.01 yesterday, Crawford's price target implies upside of 54.5%.
B. Riley isn't the only firm espousing positivity for AST SpaceMobile this week. On Wednesday, Piper Sandler initated coverage on AST SpaceMobile with an overweight rating and $100 price target.
Is now the time to buy AST SpaceMobile stock? Analysts may have see AST SpaceMobile stock rocketing higher, but investors should take these price targets with grains of salt. While analysts' opinions are worth considering, investors are better served to exercise their due diligence and look for the company to report developments that are material to its growth such as progress toward the launch of its broadband service. As one of SpaceX's most notable competitors, AST SpaceMobile certainly deserves consideration from space stock enthusiasts.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool has a disclosure policy.
SummaryAST SpaceMobile has dropped nearly 60%, but dilution was only the catalyst after weakening sentiment, execution concerns, and an unsustainably rich valuation.Nearly 60 global carriers have committed over $1.2 billion, providing access to more than 3 billion subscribers worldwide.Consensus expects revenue to grow from $170 million in 2026 to $2.84 billion by 2029, rapidly compressing valuation multiples.August's BlueBird Block 2 launch, Rakuten expansion, and commercialization milestones could fundamentally reshape investor sentiment during 2026.Despite execution risks, the recent correction offers a significantly improved risk-reward profile for long-term investors willing to tolerate volatility. loops7/iStock via Getty Images
Investment Thesis The crash in AST SpaceMobile's (ASTS) is a function of repricing execution risks in light of the BlueBird 7 failure, poor Q1 performance, and $1 billion convertible capital raise. In my view, the market is extrapolating all
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of ASTS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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Space stocks are being battered this week, and AST SpaceMobile NASDAQ: ASTS is no exception. Shares of the Midland, Texas-based company have plummeted more than 18% since the market closed on Wednesday, July 15, and the principal culprit seems to be souring investor sentiment in that corner of the market.
AST SpaceMobile, Inc. (ASTS) Price Chart for Friday, July, 17, 2026
With SpaceX NASDAQ: SPCX now trading below its IPO price, the Elon Musk-led firm’s poor performance has reverberated through the industry. Key rivals—including space-based direct-to-device (D2D) cellular broadband provider AST SpaceMobile, launch services provider Rocket Lab NASDAQ: RKLB, and commercial lunar exploration services provider Intuitive Machines NASDAQ: LUNR—have posted losses ranging from 18% to 26% over the past five days.
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For ASTS shareholders, elevated volatility has become the expectation. But this recent development builds upon a more concerning, lengthier downtrend that has seen the stock slide nearly 60% since hitting its all-time high (ATH) on May 28.
AST SpaceMobile Is a Secondhand Victim of Both SpaceX’s Fallout and SuccessOn Thursday, July 16, shares of SPCX traded around 42% below their post-IPO high. That performance reflects the broader, ongoing pullback for CapEx-intensive tech stocks, which has had an outsized impact on the AI infrastructure trade.
But for space stocks, it has taken the form of an outright correction. As a D2D competitor to SpaceX, AST SpaceMobile has seen some of the worst losses as negatively shifting sentiment has coincided with the company’s poorly received offering of $1 billion in convertible senior notes, which come due in 2034. That has led to speculation that the capital-intensive nature of its fundamental business is cause for concern moving forward.
AST SpaceMobile Today
$61.03 +6.02 (+10.94%)
As of 01:10 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$36.08▼
$133.86Price Target$86.95
With SpaceX faltering, the spotlight has also turned to AST SpaceMobile’s balance sheet.
The company is forecast to spend roughly $3 billion this year and next, with positive free cash flow not expected until at least 2028.
Scaling to the extent that AST SpaceMobile is capital-intensive. In Q1, that contributed to year-over-year (YOY) net income contraction of more than 292% despite YOY revenue growth of more than 1,952%.
Subsequently, earnings per share (EPS) have suffered. In Q1, diluted EPS came in at negative 66 cents, missing the negative 23-cent consensus and marking the worst performance since the company went public in April 2021.
Meanwhile, SpaceX’s Starlink D2D dominance is fueling concerns that AST SpaceMobile’s BlueBird deployments are failing to keep up with the company’s 2026 launch target of putting 45 satellites into low Earth orbit by early next year.
A New AST SpaceMobile 2x Leveraged ETF Fails to Attract InflowsWhile there are plenty of fundamental reasons for investors to be concerned, another comes in the form of a poorly timed leveraged exchange-traded fund (ETF) debut.
On June 23, Leverage Shares launched nine new 2x single-stock leveraged ETFs, one of which was the Leverage Shares 2X Long ASTG Daily ETF NASDAQ: ASTG. According to a press release, “the new Cboe-listed ETFs are tailored to target 200% exposure to the daily performance of their underlying stocks.”
As a result, since its post-debut peak on July 2, the ETF has doubled ASTS’ losses and is down around 63%. The poor timing of its issuance has disincentivized inflows for the fund and added another sell-the-news headwind for AST SpaceMobile, much to the benefit of short sellers (more on that below).
Current Price$57.44High Forecast$108.00Average Forecast$86.95Low Forecast$45.60AST SpaceMobile Stock Forecast Details
Apart from being the foremost competitor to SpaceX, AST SpaceMobile’s most distinguishing hallmark is perhaps its exceptionally high volatility, which is demonstrated by its current beta of 2.69.
For speculative investors who are comfortable with the company operating at a sizable loss—both presently and into the foreseeable future—ASTS’ crash from its ATH may be an ideal setup for entry. The stock’s $87 consensus price target implies nearly around 58% upside from current prices.
That may in part explain bullish buying among institutional investors. In Q2, inflows of $110 million easily surpassed outflows of $1.77 million, building upon the momentum seen in Q1 with $329 million in inflows versus $19 million in outflows.
But for Wall Street’s pundits, AST SpaceMobile’s heightened volatility is a red flag.
Overall, ASTS receives a consensus Reduce rating. Of the 11 analysts currently covering the stock, three assign it a Sell rating, six assign it a Hold rating, and just two assign it a Buy rating. Current short interest remains concerningly high at more than 21%, or 64.7 million shares of the approximately 388 million shares outstanding.
Should You Invest $1,000 in AST SpaceMobile Right Now?Before you consider AST SpaceMobile, you'll want to hear this.
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AST SpaceMobile stock is trading near recent lows. Where are ASTS shares going? $1B Convertible Notes PricedAST SpaceMobile priced $1.0 billion in aggregate principal amount of 1.625% convertible senior notes due 2034 in a private offering to qualified institutional buyers. The notes carry an initial conversion price of approximately $79.57 per share — a 20% premium over the company’s July 15 closing price of $66.31.
The company also entered into capped call transactions with an initial cap price of $149.20 per share, a 125% premium over the same reference price, designed to reduce potential dilution upon conversion. The sale is expected to settle July 20, with initial purchasers holding an option to buy up to an additional $150 million in notes within 13 days of issuance.
Commercial Launch Delayed to 2027AST SpaceMobile Shares Trade LowerASTS Price Action: At the time of publication, AST SpaceMobile shares are trading 1.33% lower at $54.28, according to data from Benzinga Pro.
Image via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Shares of AST SpaceMobile (ASTS +6.13%) have collapsed 25% this week, according to data from S&P Global Market Intelligence. The potentially disruptive direct-to-device satellite internet provider is raising $1 billion in funding through convertible notes, sending the stock sinking.
AST SpaceMobile stock is now down 59% from highs set less than two months ago. Here's why.
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$1 billion in convertible notes On July 15, AST SpaceMobile finalized a surprise $1 billion convertible bond capital raise. These are bonds that can be converted to stock above a certain share price; the specific terms of this deal call for the debt to expire in 2034 at an annual interest rate of 1.6% and a conversion price of $79.60. AST SpaceMobile currently trades at around $55 a share.
This means $16 million in annual interest payments added to AST SpaceMobile's income statement, which is actually a sizable portion of the $85 million in trailing twelve-month revenue it generates. Investors were probably a bit blindsided by this capital raise, seeing that the company had $3 billion in cash on the balance sheet at the end of last quarter.
Image source: Getty Images.
Should you buy the dip? AST SpaceMobile has had major cash flow issues, burning $1.37 billion over the last twelve months. It also has operational issues with getting its satellites into orbit, such as the recent misaligned launch from Blue Origin and the explosion of Blue Origin's launchpad. This could delay the full commercial launch of AST SpaceMobile's satellite network, keeping it burning cash for the foreseeable future.
Take this all together, and it's no surprise the stock price is collapsing. However, with a market cap of over $20 billion and further dilution on the horizon, the stock still doesn't look cheap today.
Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool has a disclosure policy.
When Space Exploration Technologies Corp. (SPCX 3.07%) went public last month, it didn't just mint a new trillion-dollar stock; it sucked the air out of the room for every other space industry stock on the market. Investors sold shares of nearly every other space company to free up cash for the shiny new giant, and the whole group tumbled in what I like to call the "SpaceX Effect."
Rising interest rates helped compound the sell-off, hitting these long-duration growth stories especially hard. To me, that kind of indiscriminate, sentiment-driven sell-off is exactly when opportunity shows up.
Here are two names I'd buy the dip on without hesitation.
Image source: Getty Images.
Rocket Lab: a real business on sale Rocket Lab (RKLB 11.62%) fell sharply during the pullback, and I think that's a gift. Unlike most of the sector, this is a genuine operating business with two growth engines, launching rockets while also building satellites and components for other customers. The company reported revenue that grew more than 60% year over year in its most recent quarter, backed by a multibillion-dollar backlog. The catalysts ahead are meaty, too: its larger Neutron rocket is targeted to make its debut later this year, it just qualified to compete for the Space Force's $5.6 billion national-security launch program, and it's buying its way toward full vertical integration with a deal for an operating satellite constellation. The dip lowered the price on a company that is arguably furthest along the path to standing on its own.
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AST SpaceMobile: the moonshot with catalysts AST SpaceMobile (ASTS 17.03%) is the more speculative of my two picks, but the sell-off makes its risk-reward more attractive. The company is building a network to beam broadband from satellites directly to ordinary smartphones, and it just cleared its biggest regulatory hurdle by winning U.S. commercial authorization. It's launching satellites on a real cadence, sits on billions in cash, and has locked in more than a billion dollars of contracted commitments from wireless carriers. The stock got swept lower with everything else, even as its actual progress accelerated -- the kind of disconnect I like to buy into.
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The risks investors need to accept with these 2 stocks I won't pretend these are safe. Rocket Lab still has to fly Neutron on schedule, and new rockets are notorious for development delays. AST isn't consistently profitable and is spending heavily to build a network that must work at scale. Both are volatile and tied to a boom-and-bust sector. "Without hesitation" reflects my conviction in the long-term stories, not a belief that the ride will be smooth.
SpaceX knocked down good companies across the board, and that's precisely the dislocation patient investors can exploit. I'd buy Rocket Lab as the sturdier, revenue-generating anchor and AST SpaceMobile as the higher-upside swing, sizing each as a speculative position. The market sold the sector on rotation, not on broken fundamentals, and that gap is the opportunity.
AST SpaceMobile (ASTS 17.03%) stock would now have to rise about 45% just to reach the $79.57 conversion price on the $1 billion of convertible senior notes it priced this week. Shares of the satellite-to-smartphone company fell more than 17% on Thursday to about $55 as of this writing, after closing at $66.31 on Wednesday -- the reference price that set the deal's terms.
Image source: Getty Images.
The notes carry a 1.625% interest rate and mature in February 2034. The conversion price represents a 20% premium to Wednesday's close, and the company expects about $983.6 million in net proceeds, with the initial purchasers holding an option to buy another $150 million of notes. AST also paired the deal with a hedge, spending $96.9 million on capped call transactions that offset potential dilution from conversion unless the stock climbs past $149.20 -- a level more than 2.5 times where shares trade now.
AST SpaceMobile
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The company said the money will let it "pursue an expanding universe of growth initiatives and secure additional access to orbit for its space-based cellular broadband network," including possible partnerships or acquisitions that would reduce its dependence on third-party launch providers. In the same filing, AST said its launch campaign is now targeting about 45 BlueBird satellites in early 2027, later than its earlier plan. Getting those satellites up is the core of the investment case, so locking down launch capacity is money aimed at the company's biggest bottleneck.
Settled entirely in stock, converting the full $1 billion at $79.57 would create about 12.6 million new shares, roughly 3% of the company. A 17% one-day decline against 3% potential dilution says the concern is bigger than the arithmetic. The delay is the other half of it: a network that reaches customers later spends longer burning capital before it produces meaningful revenue. And this is already the company's second $1 billion convertible deal this year.
But AST also just priced roughly eight-year money at a 1.625% rate, with dilution hedged up to $149.20, and issued no new shares in the process. That is cheap capital for a growth stock still building toward scale.
The gap between $55 and $79.57 is the market's measure of doubt about the timeline. If the BlueBird build-out holds to that early 2027 timeline, the notes could end up looking like well-timed financing. Until then, days like Thursday will likely remain part of owning a pre-profit space stock.
Daniel Sparks and his clients do not have positions in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool has a disclosure policy.
AST SpaceMobile shares tumbled 17.04% on Thursday following the announcement of the private offering of 1.625% convertible senior notes due in 2034.
However, Boloor argues the panic is a “completely misunderstood” reaction to the massive headline figure. Because the company spent roughly $97 million on capped call transactions—protecting shareholders up to $149.20 per share—the true equity hit is minimal.
“Based on this announced structure, the effective dilution is only going to be around 1.5%,” Boloor explained, noting that locking in over seven years of capital at a 1.6% interest rate represents “excellent financing terms” for a pre-revenue company.
Execution Risks and Shaken CredibilityIf the dilution is minor, why the massive sell-off? Boloor points to management’s communication and a critical timeline delay. The company recently claimed it was fully funded for its first 100 satellites, making the sudden $1 billion raise a shock to shareholder trust.
More concerning is the updated deployment schedule, which pushes the target for its Bluebird satellites into early 2027. “Every delay that pushes revenue further into the future… means that this is going to be a very uncomfortable near-term hold,” Boloor said.
He stressed that AST SpaceMobile is now an execution story, warning that “cash doesn’t solve execution” when dealing with launch bottlenecks and the technical risks of space.
$100 Price TargetAdditionally, institutional validation remains robust. Wall Street firm Piper Sandler backed this long-term view, initiating ASTS with an Overweight rating and a $100 price target, which implies an upside of roughly 81.78% from the closing price of Thursday.
Reaffirming the Bull CaseDespite elevated short-term execution hurdles, Boloor aligned with Wall Street’s broader outlook, maintaining a multi-year horizon.
“I just don’t think the financing itself is a reason to abandon the position. I added today,” Boloor stated.
How Has ASTS Performed?ASTS shares were down 24.26% year-to-date, down 33.12% over the last month, and higher by 4.52% over the year. It closed 17.04% down at $55.01 per share on Thursday, and it was 3.85% lower in overnight trading.
Benzinga’s Edge Stock Rankings indicate that ASTS maintains a weak price trend in the short, long and medium terms.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: PJ McDonnell / Shutterstock
Market News and Data brought to you by Benzinga APIs
AST SpaceMobile (ASTS 17.03%), a space-based cellular broadband provider, closed at $55.01, down 17.04%. The stock fell after a $1 billion convertible notes offering, as investors are watching the progress of satellite deployment and future competition.
Trading volume reached 52.2 million shares, coming in about 13% above its three-month average of 22.7 million shares. AST SpaceMobile IPO'd in 2019 and has grown 463% since going public.
How the markets moved todayS&P 500 (^GSPC 0.51%) fell 0.51% to 7,534, and the Nasdaq Composite (^IXIC 1.47%) dropped 1.47% to 25,882. Among satellite telecommunications and direct-to-device connectivity peers, Globalstar (GSAT 1.24%) fell 1.24% to $79.53, while Iridium Communications (IRDM 4.23%) declined 4.23% to $46.61.
What this means for investorsAST SpaceMobile continues to expand its fleet to build a space-based cellular broadband network. It takes capital to build and launch those satellites, and the company just announced a $1 billion convertible debt offering to help fund its growth.
One big reason shares slumped today is that they will be diluted if those notes are converted into common shares. But the stock drop may also be a buying opportunity for investors who want to own shares of what could be the first satellite provider of a direct-to-cellphone broadband network.
Proceeds from the debt sale will be used to continue building and launching AST’s growing satellite array. The next launch of its Bluebird satellites is planned for next month aboard a SpaceX (Space Exploration Technologies) Falcon 9 rocket.
There lies the rub. Competition from SpaceX is coming, and that company controls the satellite-carrying rockets. Investors should expect volatility in AST stock, but those who see room for more than one player might want to buy shares on the dip.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool has a disclosure policy.
AST SpaceMobile ASTS shares are taking a hit this morning due to a combination of a massive new debt raise and delays in their commercial satellite launch timeline.
The sell-off crashed ASTS relative strength index (RSI) further into the early 30s – indicating the stock is now approaching “oversold” territory that often triggers a relief rally.
The bearish announcements arrive at a time when AST SpaceMobile stock is already under notable pressure, currently down about 56% versus its recent high.
Investors bailed on ASTS stock on Thursday morning after the company announced the pricing of a $1 billion private offering of 1.625% convertible senior notes due 2034.
The notes have an initial conversion price of about $79.57 per share (roughly a 20% premium over yesterday’s closing price of $66.31).
Even though the company purchased capped call transactions to mitigate the impact, investors are acting super sensitive to the related dilution.
The prospect of up to $1 billion in debt eventually converting into new shares has sparked fear that existing shareholders will have their ownership significantly diluted over time.
Alongside the capital raise, AST SpaceMobile dropped disappointing operational news as well: a delay in its launch timeline.
In an SEC regulatory filing on July 15th, the company said it’s now targeting the launch of its next block of roughly 45 BlueBird satellites for early 2027, pushing back its previous expectations for later this year
Management cited launch-provider capacity issues – specifically setbacks with Blue Origin’s New Glenn rocket – as a key reason for the bottleneck.
AST SpaceMobile shares tumbled on the announcement because it postpones the company’s path to meaningful revenue and cash flow.
In a high-stakes space race, a prolonged timeline leaves a wider window open for well-capitalized rivals, like SpaceX’s Starlink, to capture market share and secure dominant first-mover advantage.
While raising $1 billion secures the capital ASTS needs to continue building its direct-to-phone satellite constellation, the combination of immediate dilution concerns and a stretched timeline for commercial revenues is prompting a wave of selling.
And disciplined investors are cautioned against buying the dip because AST SpaceMobile Inc isn’t really trading at an attractive valuation either.
Despite recent weakness, its price-to-sales (P/S) multiple sits at about 377x currently, which makes it a very expensive stock to own by any stretch of the imagination.
That said, Wall Street analysts remain largely bullish on ASTS for the remainder of 2026.
While the consensus rating on the Nasdaq-listed firm sits at Hold only, the mean price target is set at about $86 currently, indicating potential upside of about 50% from current levels.
AST SpaceMobile (ASTS 18.34%) has grand ambitions to offer broadband directly to smartphones anywhere on Earth. Building and launching the satellite array that will provide that technology costs money.
AST announced yesterday that it was raising additional funds to support its efforts. The stock is dropping today on that news, down 15.5% as of 11:07 a.m. ET. But investors have more to worry about than just the required capital.
Image source: The Motley Fool.
Raising money, rising competition AST shares tanked today after the company said it was raising $1 billion through a private offering of convertible senior notes. The notes carry an initial conversion price of just under $80 per share. While that represented about a 20% premium over yesterday's closing price of AST stock, investors may be thinking the company's timing was poor.
Today's Change
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AST SpaceMobile stock has plunged by nearly 60% since late May, when it traded above $130 per share. Perhaps it could have done the capital raise at a higher conversion price in recent weeks, thereby lessening dilution by converting fewer shares.
Regardless, investors are not only concerned with the potential dilution; there is also competition from Space Exploration Technologies on the horizon. SpaceX's Starlink has advantages in the rocket segment of that business, along with a vast array of already-deployed satellites.
AST said it will use the proceeds for growth initiatives and to "secure additional access to orbit for its space-based cellular broadband network." SpaceX controls much of that access, which could be a bigger problem for AST shareholders than the capital raise that's moving the stock lower today.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool has a disclosure policy.
HomeIndustriesAerospace/DefenseSpace WatchSpace WatchAST SpaceMobile also pushed back a satellite-launch targetJuly 16, 2026, 11:51 a.m. ET
Shares of a SpaceX competitor are dropping on Thursday after the company said it needed to raise new funds and announced a delay with its satellite targets.
Shortly after the market closed on Wednesday, AST SpaceMobile ASTS said it would offer $1 billion worth of convertible senior notes. A few hours later, the company disclosed pricing details for those 1.625% notes, which are due in 2034 and will have an initial conversion price of $79.57 a share.
AST SpaceMobile (ASTS 15.17%) has carrier validation from AT&T, Verizon, and dozens of global partners, which could make the satellite-to-phone thesis more serious. But this remains a high-expectation stock, and the next phase depends on launches, activation, and recurring revenue.
Stock prices used were the market prices of July 1, 2026. The video was published on July 15, 2026.
Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool has a disclosure policy. Rick Orford is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link, they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
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Shares of AST SpaceMobile (NASDAQ:ASTS) are down 13% to $57.63 in early Thursday trading, extending an overnight slide after the company priced a fresh $1 billion convertible senior notes offering. The satellite broadband stock closed Wednesday at $66.31 and is now testing levels not seen since the spring.
The move puts ASTS stock down 27% over the past month, but not every space stock is down this morning. Granted, the volatility has been elevated, and the options market is bracing for more: the July 17 put/call ratio sits at 1.04, tilting bearish into weekly expiration.
Dilution Fears Fuel the Selloff AST SpaceMobile priced $1 billion of 1.625% convertible senior notes due 2034 in a private 144A offering set to settle around July 20. The initial conversion price is $79.57 per share, a 20% premium to Wednesday’s close, and paired capped call transactions lift the effective conversion price to $149.20, a 125% premium. AST SpaceMobile’s net proceeds are estimated at about $983.6 million, per the company’s Business Wire release.
This is the second billion-dollar convertible debt offering from AST SpaceMobile this year, echoing a similar raise in February that also triggered a selloff. The frustration on Reddit’s r/wallstreetbets has been visible, with sentiment scoring as low as 12 on a 0-100 scale Wednesday afternoon. The dilution concern is real, though the conversion price sits well above the current share price, and the capped call blunts near-term dilution.
The details in AST SpaceMobile’s 8-K filing tie the use of proceeds to growth initiatives and additional orbital access. Satellite-communications analyst Tim Farrar flagged on X that language pointing to “partnerships and/or acquisitions” reads like preparation to buy or invest in a launch provider. AST SpaceMobile says it has no agreements, so treat that thesis as speculation.
An ASTS-Specific Move The reaction to AST SpaceMobile’s news and the drop in ASTS stock appear to be company-specific. SpaceX (NASDAQ:SPCX | SPCX Price Prediction) shares are up 1%, and Virgin Galactic (NYSE:SPCE) shares are down 3%, which may be a function of normal daily price volatility for this sector.
Rocket Lab (NASDAQ:RKLB) shares are down 8% to $69.86, but that trade could be framed as a continuation of its own 33% month-long slide tied to Iridium deal financing concerns and insider selling, and not necessarily as an ASTS read-through. If anything, the Farrar thesis has AST SpaceMobile copying Rocket Lab’s vertical-integration playbook.
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For diversified exposure to the space theme, investors can look to the Procure Space ETF (NASDAQ:UFO), which counts both AST SpaceMobile and Rocket Lab among its holdings. Just note that UFO is a narrow, globally diversified thematic fund with concentration risk (and it doesn’t hold SpaceX), so it carries more single-sector volatility than a broad-market ETF.
The Street Still Sees Upside Wall Street hasn’t blinked. Piper Sandler initiated coverage Wednesday at Overweight with a $100 price target, and the consensus 12-month target sits at $81.47, well above where AST SpaceMobile shares trade today. Analyst ratings skew toward Hold, with 2 Buys, 7 Holds, and 2 Strong Sells.
The bull case rests on AST SpaceMobile’s nearly 60 mobile network operator partners covering 3 billion-plus subscribers and the BlueBird constellation build-out. The bear case is straightforward: repeat capital raises, no meaningful revenue yet, and a beta of 2.7 that drives large swings. Investors should consider keeping position sizes modest given the volatility profile.
What to Watch Investors can watch for confirmation or denial of the launch-provider acquisition angle, along with Rocket Lab’s session close for any read on the vertical-integration thesis. The convertible settles around July 20, which could mark the point where forced hedging pressure eases and AST SpaceMobile stock finds a footing.
The setup ahead is binary. Either management clarifies the use of proceeds with a concrete strategic move, which could reset sentiment, or the dilution overhang lingers and the stock grinds sideways while the BlueBird build-out continues.
The takeaway: AST SpaceMobile remains a high-conviction, high-volatility story where capital access is a feature, not a bug, but each capital raise resets the dilution clock. Patient investors have a Wall Street target well above current levels to lean on, provided they can stomach the price swings.
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AST SpaceMobile (ASTS) fell in after-hours trading after the satellite communications company priced a $1 billion private offering of convertible senior notes d
MIDLAND, Texas--(BUSINESS WIRE)--AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones, designed for both commercial and government applications, today announced the pricing of $1.0 billion aggregate principal amount of 1.625% convertible senior notes due 2034 (the “Notes”) in a private offering (the “Notes Offering”) to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The sale of the Notes to the initial purchasers is expected to settle on July 20, 2026, subject to customary closing conditions.
Key Elements of the Transaction:
$1.0 billion 1.625% convertible senior notes due 2034, which have an initial conversion price of approximately $79.57 per share of AST SpaceMobile’s Class A common stock, which represents a premium of approximately 20.0% over the last reported sale price of AST SpaceMobile’s Class A common stock on July 15, 2026. Capped call transactions entered into in connection with the pricing of the Notes have an initial cap price of $149.20 per share of AST SpaceMobile’s Class A common stock, which represents a premium of 125.0% over the last reported sale price of AST SpaceMobile’s Class A common stock on July 15, 2026. Option to Purchase Additional Notes:
AST SpaceMobile also granted the initial purchasers of the Notes in the Notes Offering an option to purchase, for settlement within a 13-day period beginning on, and including, the first date on which the Notes are issued, up to an additional $150.0 million aggregate principal amount of Notes.
Use of Proceeds:
AST SpaceMobile estimates that the net proceeds from the Notes Offering will be approximately $983.6 million (or approximately $1,131.2 million if the initial purchasers’ option to purchase additional Notes is exercised in full), after deducting the initial purchasers’ discounts and commissions and estimated offering expenses payable by AST SpaceMobile. AST SpaceMobile intends to use $96.9 million of the net proceeds from the Notes Offering to pay the cost of the capped call transactions described below. AST SpaceMobile intends to use the remaining net proceeds from the Notes Offering to pursue an expanding universe of growth initiatives and secure additional access to orbit for its space-based cellular broadband network, including partnerships and/or acquisitions to further vertically integrate its business and mitigate risks associated with third-party launch providers. AST SpaceMobile currently does not have any understandings or agreements with respect to any such strategic transactions. If the initial purchasers exercise their option to purchase additional Notes, AST SpaceMobile expects to use a portion of the net proceeds from the sale of the additional Notes to enter into additional capped call transactions with the option counterparties (as defined below), with the remainder of the net proceeds to be used as described above.
Additional Details of the Notes:
The Notes will be senior, unsecured obligations of AST SpaceMobile. The Notes will accrue interest at an annual rate of 1.625%, payable semiannually in arrears on February 1 and August 1 of each year, beginning on February 1, 2027. The Notes will mature on February 1, 2034, unless earlier converted or repurchased.
Prior to the close of business on the business day immediately preceding November 1, 2033, noteholders will have the right to convert their Notes only upon the satisfaction of specified conditions and during certain periods. On or after November 1, 2033 and until the close of business on the second scheduled trading day immediately preceding February 1, 2034, noteholders may convert their Notes at any time regardless of these conditions. The initial conversion rate will be 12.5672 shares of AST SpaceMobile’s Class A common stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of approximately $79.57 per share of AST SpaceMobile’s Class A common stock, which represents a premium of approximately 20.0% over the last reported sale price of $66.31 per share of AST SpaceMobile’s Class A common stock on the Nasdaq Global Select Market on July 15, 2026), subject to adjustment in certain circumstances. AST SpaceMobile will settle conversions of Notes by paying or delivering, as the case may be, cash, shares of AST SpaceMobile’s Class A common stock, or a combination thereof, at AST SpaceMobile’s election.
The Notes will not be redeemable at AST SpaceMobile’s option prior to the maturity date, and no sinking fund is provided for the Notes.
Noteholders will have the right, subject to certain conditions and exceptions described in the indenture governing the Notes (the “indenture”), to require AST SpaceMobile to repurchase for cash all or a portion of their Notes upon the occurrence of a fundamental change (as defined in the indenture) at a purchase price of 100% of their principal amount plus accrued and unpaid interest, if any, to, but excluding, the relevant repurchase date. In addition, following certain corporate events that occur prior to February 1, 2034, AST SpaceMobile will, in certain circumstances, increase the conversion rate for a noteholder who elects to convert its Notes in connection with such corporate events.
Capped Call Transactions:
In connection with the pricing of the Notes, AST SpaceMobile entered into capped call transactions with certain of the initial purchasers of the Notes or affiliates thereof and other financial institutions (the “option counterparties”). The capped call transactions cover, subject to customary adjustments, the number of shares of AST SpaceMobile’s Class A common stock initially underlying the Notes. The capped call transactions are expected generally to reduce the potential dilution to AST SpaceMobile’s Class A common stock upon any conversion of Notes and/or offset any cash payments AST SpaceMobile is required to make in excess of the principal amount of converted Notes, as the case may be, with such reduction and/or offset subject to a cap. The cap price of the capped call transactions is initially $149.20 per share, which represents a premium of 125.0% over the last reported sale price of AST SpaceMobile’s Class A common stock of $66.31 per share on the Nasdaq Global Select Market on July 15, 2026, and is subject to certain adjustments under the terms of the capped call transactions.
In connection with establishing their initial hedges of the capped call transactions, AST SpaceMobile expects the option counterparties or their respective affiliates will enter into various derivative transactions with respect to AST SpaceMobile’s Class A common stock and/or purchase shares of AST SpaceMobile’s Class A common stock concurrently with or shortly after the pricing of the Notes, including with, or from, as the case may be, certain investors in the Notes. This activity could increase (or reduce the size of any decrease in) the market price of AST SpaceMobile’s Class A common stock or the Notes at that time.
In addition, the option counterparties or their respective affiliates may modify their hedge positions by entering into or unwinding various derivatives with respect to AST SpaceMobile's Class A common stock and/or purchasing or selling AST SpaceMobile’s Class A common stock or other securities of AST SpaceMobile in secondary market transactions following the pricing of the Notes and prior to the maturity of the Notes (and are likely to do so during the 20 trading day period beginning on the 21st scheduled trading day prior to the maturity date of the Notes, or, to the extent AST SpaceMobile exercises the relevant termination election under the capped call transactions, following any repurchase or conversion of the Notes). This activity could also cause or avoid an increase or a decrease in the market price of AST SpaceMobile’s Class A common stock or the Notes, which could affect a noteholder’s ability to convert the Notes and, to the extent the activity occurs during any observation period related to a conversion of Notes, it could affect the number of shares, if any, and value of the consideration that a noteholder will receive upon conversion of its Notes.
The Notes are only being offered and will only be sold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act by means of a private offering memorandum. Neither the Notes nor the shares of AST SpaceMobile’s Class A common stock potentially issuable upon conversion of the Notes, if any, have been, or will be, registered under the Securities Act or the securities laws of any other jurisdiction, and unless so registered, may not be offered or sold in the United States, except pursuant to an applicable exemption from, or in a transaction not subject to, such registration requirements.
This announcement is neither an offer to sell nor a solicitation of an offer to buy any of the Notes or any shares of AST SpaceMobile’s Class A common stock potentially issuable upon conversion of the Notes and shall not constitute an offer, solicitation, or sale in any jurisdiction in which such offer, solicitation, or sale is unlawful.
About AST SpaceMobile
AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio, designed for both commercial and government applications. Our engineers and space scientists are on a mission to enable 4G and 5G space-based cellular broadband to every device, everywhere, for today’s nearly 6 billion mobile subscribers globally.
Forward-Looking Statements
This communication contains “forward-looking statements” that are not historical facts, including statements concerning the completion of the Notes Offering, the potential effects of entering into the capped call transactions, and the expected use of the net proceeds from the Notes Offering. These forward-looking statements can be identified by the use of forward-looking terminology, including the words “anticipates,” “believes,” “could,” “estimates,” “expects,” “intends,” “may,” “potential,” “will,” or, in each case, their negative or other variations or comparable terminology. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Such risks include, but are not limited to, whether AST SpaceMobile will consummate the Notes Offering, prevailing market conditions, the anticipated principal amount of the Notes, which could differ based upon the exercise of the initial purchasers’ option to purchase additional Notes, the anticipated use of the net proceeds from the Notes Offering, which could change as a result of market conditions or for other reasons, whether the capped call transactions described above will become effective, the effects of entering into these transactions, and the impact of general economic, industry or political conditions in the United States or internationally.
AST SpaceMobile cautions that the foregoing list of factors is not exclusive. AST SpaceMobile cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors in AST SpaceMobile’s Form 10-K for the fiscal year ended December 31, 2025 filed with the SEC on March 2, 2026, its Form 10-Q for the fiscal quarter ended March 31, 2026 filed with the SEC on May 11, 2026 and the future reports that it may file from time to time with the SEC. AST SpaceMobile’s securities filings can be accessed on the EDGAR section of the SEC’s website at www.sec.gov. Except as expressly required by applicable securities law, AST SpaceMobile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
MIDLAND, Texas--(BUSINESS WIRE)--AST SpaceMobile, Inc. (“AST SpaceMobile”) (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones, designed for both commercial and government applications, today announced its intent to offer, subject to market conditions and other factors, $1.0 billion aggregate principal amount of convertible senior notes due 2034 (the “Notes”) in a private offering (the “Notes Offering”) to pe.
The trillion-dollar space economy has stopped being a science-fiction talking point. Instead, it’s starting to show up in earnings reports, ETF flows, and defense budgets.
On the July 15 episode of Goldman Sachs Exchanges, The Growth of the Space Industry, host Allison Nathan told listeners the sector sits at about $625 billion today and that hitting the trillion-dollar mark is “a matter of when, not if.” The consensus timing she cited: the mid-2030s or 2040s, with falling launch costs doing most of the heavy lifting.
Her framing of the ownership shift is the more investable insight.
“About 80% today is driven by commercial companies. A generation ago, it was 80% government,” Nathan said, describing “a flywheel effect of attracting more investment and development.” A guest on the show walked through what that commercial layer already looks like in everyday life.
iPhone SOS functions in remote locations, Starlink delivering “Wi-Fi during your flight at basically real-time speeds that you would get over broadband internet,” and more frequently refreshed Google Maps imagery from earth-observation constellations. Further out, the guest pointed to space stations, a lunar base, and “ultimately making humanity multi-planetary.”
How Investors Are Playing the Theme The cleanest thematic wrapper is the Procure Space ETF (NASDAQ: UFO), which holds 47 equity positions spanning satellite communications, launch, earth observation, and aerospace primes. Net assets stand at $749.3 million, with top weights in Planet Labs (6.16%), Viasat (5.90%), Globalstar (5.28%), Sirius XM (5.05%), and Rocket Lab (5.02%).
UFO is up 18.54% year to date and 52.71% over the past year, though the last month has been rough, with the fund down 13.43% as high-beta space names sold off. Over five years, the ETF has returned 70.72%. For readers who want the flywheel exposure without the single-stock volatility of pre-revenue satellite operators, that basket is the natural starting point. Nathan’s point about commercial capture also lines up with the broader macro backdrop: manufacturing value added grew 1.3% in Q1 2026, reversing a -2.6% trough in Q1 2025, while professional and technical services (where R&D and engineering sit) added $148.9 billion year over year.
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Pure-Play Names Behind the Trend The direct-to-device broadband thesis Nathan referenced runs straight through AST SpaceMobile (NASDAQ: ASTS).
The company reported Q1 2026 revenue of $14.7 million, up 1,952% year over year. It reaffirmed full-year revenue guidance of $150 million to $200 million, while maintaining its target of approximately 45 BlueBird satellites in orbit by year-end. CEO Abel Avellan told investors AST is “accelerating manufacturing, regulatory progress, commercial partnerships, and government programs,” supported by approximately $3.5 billion in cash and partnerships with nearly 60 mobile network operators covering more than 3 billion subscribers. Investors can review the full disclosure in AST’s Form 8-K filings on SEC.gov.
On the launch and defense side, Firefly Aerospace (NASDAQ: FLY | FLY Price Prediction) reported Q1 2026 revenue of $80.88 million, up 44.8% year over year, and exceeded analyst consensus by 7.94%. CEO Jason Kim highlighted the company’s selection to support the U.S. Space Force’s Golden Dome space-based interceptor program and a $109 million engineering change proposal under the FORGE Enterprise OPIR Services contract. Firefly reaffirmed full-year 2026 revenue guidance of $420 million to $450 million.
For a broader shortlist of AI-connected infrastructure names benefiting from these same tailwinds, our team’s 7 Stocks Powering the AI Boom (That Aren’t Chipmakers) research report is a useful cross-reference, since satellite and edge-compute buildouts are increasingly bundled with data-center demand.
What to Watch Next Nathan’s central variable is launch cost. Every step down the cost-per-kilogram curve widens the addressable market for satellite operators, imaging companies, and eventually lunar logistics. Keep an eye on cadence at Rocket Lab and Firefly, BlueBird deployment milestones at AST, and whether the recent one-month drawdown in UFO marks a reset or the start of a longer digestion phase. If the guest is right that the transformation is “absolutely remarkable” and still early, pullbacks in the basket will look very different in the rearview mirror than they do on the tape today.
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In the latest trading session, AST SpaceMobile, Inc. (ASTS - Free Report) closed at $68.82, marking a +1.83% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.38%. Elsewhere, the Dow gained 0.02%, while the tech-heavy Nasdaq added 0.9%.
The stock of company has fallen by 22.83% in the past month, lagging the Computer and Technology sector's loss of 1.5% and the S&P 500's gain of 1.27%.
Investors will be eagerly watching for the performance of AST SpaceMobile, Inc. in its upcoming earnings disclosure. The company's upcoming EPS is projected at -$0.28, signifying a 31.71% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $34.32 million, indicating a 2858.28% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of -$1.47 per share and a revenue of $164.76 million, signifying shifts of -9.7% and +132.32%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for AST SpaceMobile, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, AST SpaceMobile, Inc. possesses a Zacks Rank of #3 (Hold).
The Wireless Equipment industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 175, which puts it in the bottom 29% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
It’s been about one month since SpaceX's NASDAQ: SPCX initial public offering (IPO), and the stock is down approximately 11% from its first trade on June 12. But cynics shouldn’t take a victory lap quite yet.
Some of the pullback is due to a simple, mechanical reason. There are a massive number of shares outstanding that haven’t been soaked up by institutional investors. Plus, IPOs have a track record of “underperforming” after their debut.
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Taking a step back, this isn’t a repudiation of the overall space thesis. As of July 14, SpaceX's market cap is $1.85 trillion. That’s down from the $2.1 trillion market cap at its debut, but it’s a strong signal that investors expect future growth in this sector.
A better explanation for the SPCX pullback may be that some of the capital and attention that had moved away from smaller space companies is returning. Many of these companies are working with SpaceX and rely on multi-year government and telecommunications contracts.
For investors looking for opportunities outside SPCX, here are three names to consider, along with the key objective each company aims to achieve.
Rocket Lab: More Than Just Rocket LaunchesRocket Lab NASDAQ: RKLB investors are quick to note that the company’s business model relies on more than rocket launches. That shows up in the company’s topline, where Space Services is now the company’s largest revenue contributor. This high-margin business will be good for the company’s bottom line and got a boost from its $8 billion acquisition of Iridium Communications.
Rocket Lab Today
$79.52 +2.79 (+3.64%)
As of 01:10 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$37.57▼
$151.00Price Target$111.88
However, as of the company’s Q1 2026 earnings report, Rocket Lab is not profitable on a GAAP or non-GAAP basis. That’s a key reason RKLB is down approximately 21% over the 30 days ending July 13, despite being added to the NASDAQ-100 index.
The company needs a catalyst, and that’s likely to come from the launch business. Rocket Lab is scheduled to launch its Neutron reusable rocket in late 2026. The medium-lift rocket will allow Rocket Lab to compete with SpaceX for larger payloads and constellation contracts. To that end, Rocket Lab has already signed contracts for five dedicated Neutron missions alongside 31 new Electron and HASTE bookings.
The largest concern is valuation. Even after the pullback, RKLB trades around 72x sales. A company like Rocket Lab will command a higher multiple, and analysts give the stock a consensus price target of $111.88, an upside of over 38% from its price on July 14. Execution risks exist, but the upside shouldn’t be dismissed.
AST SpaceMobile: A Long Game That's Starting to Pay OffAST SpaceMobile NASDAQ: ASTS is developing a space-based cellular broadband network designed to connect standard mobile phones and other devices directly to satellites. It’s the definition of playing the long game, but so far, it’s paying off.
AST SpaceMobile Today
$69.15 +1.57 (+2.32%)
As of 01:10 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$36.08▼
$133.86Price Target$85.09
In its Q1 2026 earnings report, the company said it was on track to achieve its full-year revenue guidance between $150 million and $200 million.
This is driven by mobile network partners with Verizon Communications NYSE: VZ and AT&T NYSE: T, as well as the U.S. Government. AST SpaceMobile is targeting roughly 45 BlueBird satellites to be in orbit by year-end.
Analysts are forecasting even stronger revenue growth over the next two years, with the company expected to turn a profit in 2028.
But at the moment, investors have to account for the company’s significant cash burn. That doesn’t make ASTS uninvestable, but it also means that volatility should be expected.
Intuitive Machines: The Space Stock With the Clearest Path to ProfitsThe common denominator for space companies, including SpaceX, is that they are not yet profitable. However, Intuitive Machines NASDAQ: LUNR may have the clearest line of sight to profitability.
Intuitive Machines Today
LUNR
Intuitive Machines
$15.10 -0.05 (-0.30%)
As of 01:10 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$7.78▼
$46.75Price Target$31.50
In the company’s Q1 2026 earnings report, it guided to approximately $1 billion in full-year 2026 revenue and ended the quarter with a backlog of around $1.1 billion. NASA is the company’s key customer as Intuitive Machines is aligned with the Artemis program. That will take the company’s revenue pipeline into the next decade.
That said, among the three companies on this list, Intuitive Machines may pose the greatest operational risk. Lunar missions are often delayed, and the stock prices of companies linked to those delays can be affected. But after a pullback of approximately 35% in the three months ending July 13, investors will find it difficult to ignore the analysts who give LUNR a consensus price target of $31.50, a 105% gain.
Time Works for Patient InvestorsMany retail investors rushed into the space sector, believing these stocks were going to the moon. That’s not an incorrect assumption, but the timing will be choppy. There will be some failures along the way, and this is a capital-intensive business with many companies, including SpaceX, that are not yet profitable.
All of which means that timing and position size are critical. Committing capital across market cycles, rather than trying to time tops and bottoms, is likely to be a winning strategy. The space economy is real and growing. But it will still require patience.
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AST SpaceMobile (ASTS +5.70%) has an audacious goal: To provide cellular coverage to every location on the planet using a constellation of low-Earth-orbit satellites. It's no surprise the stock has attracted plenty of attention, even if its share price has been volatile over the last year.
Image source: Getty Images.
Still, the story behind AST is compelling. Its business-to-business approach -- working with telecom operators instead of trying to replace them -- could give it an edge over would-be competitors. But how much could AST SpaceMobile stock be worth in 2028?
AST SpaceMobile: The business breakdown AST is building and deploying a satellite constellation designed to deliver cellular and broadband coverage through the networks of established telecom operators such as Verizon, AT&T, and Vodafone.
The selling point is simple: AST's network can fill coverage gaps that traditional telecom infrastructure can't reach in a cost-effective way. For carriers, that can reduce the need to spend on new towers or launch their own satellites.
For its part, the business model means AST avoids going head-to-head with entrenched telecom providers. Instead, it partners with them to serve the same customers. In theory, that's a win-win. Carriers can reallocate capital to other priorities, while AST could generate recurring revenue.
$290 per share by 2028: Is it even possible? Let's walk through a bullish scenario.
AST is still unprofitable, and building a constellation of satellites capable of covering mobile dead zones worldwide is extremely expensive.
The trade-off is operating leverage. Launching satellites requires a huge up-front investment, but AST expects relatively low variable costs as more users join the service. Management believes the company's economics could look very different once its network is fully operational. The company also got a step closer to its goal this year when it earned Federal Communications Commission (FCC) approval for U.S. operations.
That leverage is why management has said the AST's earnings before interest, taxes, depreciation, and amortization (EBITDA) margins could eventually reach 90% or higher.
Next, AST SpaceMobile says its partnerships with nearly 60 mobile network operators provide it with access to more than 3 billion subscribers globally. In other words, AST doesn't need to build a consumer brand from scratch. It can sell its service through carriers via monthly add-ons, day passes, enterprise packages, or stand-alone connectivity plans.
Now for the math.
Let's say 5% of those 3 billion subscribers use AST's service monthly. That would be 150 million paying users.
AST hasn't disclosed how much revenue it expects to earn per customer, as its agreements are based on revenue-sharing with mobile network operators. As a rough reference point, T-Mobile currently offers its T-Satellite service as an add-on for around $10 per month.
In this scenario, assume AST retains $5 per subscriber per month. That would work out to about $750 million in monthly revenue, or $9 billion annually.
If we apply management's 90% EBITDA margin target, that implies roughly $8.1 billion in EBITDA. If depreciation, interest, taxes, and other below-EBITDA expenses reduce that by about 45%, AST would earn around $4.5 billion in net income.
AST has about 388 million shares and economically equivalent LLC units across all classes. On $4.5 billion in net income, earnings per share would be roughly $11.60.
From there, valuation becomes the swing factor. The median price-to-earnings ratio for companies in the communication services sector is about 16. Using that multiple, and assuming the scenario plays out, AST's stock price could potentially reach roughly $174 by 2028.
But if AST can monetize the service at scale, hit 90% EBITDA margins, and generate $4.5 billion in net income, would the market really price it at an average multiple? Probably not.
So let's raise the multiple to 25 times earnings. That would put the stock at $290, based solely on the commercial side of the business. That doesn't factor in potential future military and government applications.
Is AST SpaceMobile stock a buy? To be clear, all of those figures assume a bullish scenario. A lot would have to go right for those numbers to show up. But if AST delivers on what it believes it can, its path toward a $300 share price by 2028 is certainly not impossible.
AST SpaceMobile, Inc. (ASTS - Free Report) closed the most recent trading day at $67.58, moving -7.83% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.79%. Elsewhere, the Dow saw a downswing of 0.26%, while the tech-heavy Nasdaq depreciated by 1.55%.
Coming into today, shares of the company had lost 11.03% in the past month. In that same time, the Computer and Technology sector gained 3.44%, while the S&P 500 gained 4.28%.
Analysts and investors alike will be keeping a close eye on the performance of AST SpaceMobile, Inc. in its upcoming earnings disclosure. The company is expected to report EPS of -$0.28, up 31.71% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $34.32 million, indicating a 2858.28% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of -$1.47 per share and a revenue of $164.76 million, signifying shifts of -9.7% and +132.32%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for AST SpaceMobile, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. AST SpaceMobile, Inc. presently features a Zacks Rank of #4 (Sell).
The Wireless Equipment industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 181, this industry ranks in the bottom 27% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Midland, Texas-based AST SpaceMobile NASDAQ: ASTS has been a battleground for bulls and bears this year.
Among space stocks, it has been one of the most volatile, seeing its fair share of ups and downs throughout 2026 including a 59% run-up to its all-time high on May 28 and a series of double-digit peaks and troughs mixed in.
That trend has continued over the past month. Shares pushed up more than 35% from their one-month low June 25 through June 30. But since the calendar turned to July, the stock has given back nearly half of those gains, with ASTS now down more than 17% from that recent high.
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AST SpaceMobile, Inc. (ASTS) Price Chart for Monday, July, 13, 2026
With its beta now up to 2.69, the SpaceX NASDAQ: SPCX rival and space-based direct-to-device (D2D) cellular broadband provider is likely positioned for more of the same as. But a combination of potential catalysts and inhibitors will ultimately decide whether AST SpaceMobile is able to break back into the green during the second half of the year.
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52-Week Range$36.08▼
$133.86Price Target$85.09
AST SpaceMobile’s bull case remains largely intact in large part due to maintaining its first-mover advantage in the space-based D2D market.
That has resulted in a myriad of formal strategic agreements that have cemented the company’s status.
Most recently, ASTS received a bump from Japan's $912 million satellite communications push. That put AST SpaceMobile’s existing partnership with Tokyo-based Rakuten OTCMKTS: RKUNY back into the spotlight while raising hopes for a major D2D rollout. The two companies are forming a joint venture that is targeting regulatory approval for D2D operations in Japan, with initial commercial services expected to begin later in 2026.
The company also has agreements with nearly 60 global mobile network providers, totaling more than three billion subscribers, and strategic partnerships in place with AT&T NYSE: T, Verizon NYSE: VZ, Vodafone NASDAQ: VOD, Rakuten, Alphabet NASDAQ: GOOGL, and real estate investment trust American Tower NYSE: AMT, among others. Over the long term, those relationships should continue to drive AST SpaceMobile's top-line growth, translating into strong earnings for patient investors.
An accelerated launch schedule for the company’s low Earth orbit (LEO) BlueBird satellites—the largest commercial arrays currently in operation—serves as another catalyst. A simultaneous launch of the next three, including BlueBirds 11, 12, and 13, is scheduled for early August from Cape Canaveral, Florida, aboard a Falcon 9 rocket.
The bundled launches should go a long way in AST SpaceMobile meeting its 2026 launch target of having 45 BlueBirds in LEO. According to president Scott Wisniewski, the company is in the process of producing and assembling satellites through BlueBird 37.
Headwinds: Mounting Costs, Launch Targets, Earnings MissesScaling at the pace and size that the company is comes at a steep cost. AST SpaceMobile posted a net loss of $342 million in 2025, which was nearly 969% higher than its net loss in 2022 after its first full year of operation as a publicly traded company. However, in Q1, that loss significantly accelerated to $191 million.
As the company ramps up its launch production and launch schedule, analysts are forecasting a full-year cash burn rate between $1.5 billion and $1.8 billion.
Another potential headwind is AST SpaceMobile’s lofty BlueBird launch target. While that also serves as a near-term headwind, longer term, it could present issues. Unforeseen launch complications and mishaps—like the Blue Origin deployment of BlueBird 7 at an insufficient orbit back in April—could adversely impact AST SpaceMobile’s ability to meet its year-end launch target. BlueBird 7 was subsequently deorbited, yet the company has maintained that it can reach its goal of having 45 LEO satellites deployed by the end of 2026.
Meanwhile, sentiment has been negatively impacted by a series of consecutive earnings per share (EPS) misses. AST SpaceMobile remains unprofitable, but its negative EPS has missed the analyst mark for five straight quarters, with only two beats in the past 11 quarters. This has played a major role in outflows driven by impatient investors who have been waiting for the stock—which had its IPO in April 2021—to finally turn a corner.
Where Wall Street StandsAST SpaceMobile Stock Forecast Today12-Month Stock Price Forecast:
$85.09
21.63% Upside
Reduce
Based on 10 Analyst Ratings
Current Price$69.95High Forecast$108.00Average Forecast$85.09Low Forecast$45.60AST SpaceMobile Stock Forecast Details
The smart money appears to be erring on the side of caution when it comes to ASTS.
Sentiment is tepid, with just one of the 10 analysts covering the stock assigning it a Buy rating.
Overall, it holds a consensus Reduce rating despite a 12-month price target implying about 16% potential upside from current levels.
In the past year, insider selling has muted insider buying by a ratio of more than $451 million to just over $187,000.
But institutional investors are evidently taking a longer-term approach, with buyers injecting $2.34 billion over the past 12 months compared to outflows of just over $487 million.
Still, as previously mentioned, more volatility is likely ahead, as reflected by current short interest of 21% of the float, which equates to $5.45 billion worth of shares.
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For years, AST SpaceMobile (ASTS 0.70%) was a great story with almost nothing to show for it. It had a plan to beam broadband straight to an ordinary, unmodified smartphone from space. In 2026, the story is finally becoming an operating business, and that shift from promise to proof is exactly what makes this moment worth studying now rather than after the fact.
Image source: Getty Images.
Why the clock matters for AST SpaceMobile right now The reason I'd pay attention to this ticker today comes down to timing. In May, the FCC authorized the company to run commercial SpaceMobile Service in the United States, clearing the single biggest regulatory hurdle standing between it and paying customers. Then, in June, AST SpaceMobile launched three more of its BlueBird satellites, the large arrays that do the actual work of connecting to phones on the ground. The company aims to have roughly 45 satellites in orbit in 2026, with more than 20 additional units already in production.
A handful of satellites can only offer connectivity in brief, intermittent windows. It takes a critical mass of them circling the globe before coverage becomes continuous enough to sell as a real service. Crossing that threshold is what 2026 is about, and it's why the next couple of quarters are more consequential than any single earnings report.
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The partners de-risking the story AST SpaceMobile isn't trying to build a phone network from scratch, which I think is the underrated part of the setup. It plugs into existing carriers. Its authorization lets it use premium low-band spectrum in coordination with strategic partners, including AT&T (T +1.92%) and Verizon Communications (VZ +1.50%), plus the FirstNet public-safety network that first responders rely on. Letting satellites fill the dead zones where cell towers can't reach -- remote highways, disaster areas, open water -- is a genuinely useful problem to solve, and having national carriers already committed lowers the odds that AST will build something nobody wants.
The risks that could break the thesis Here's the honest counterweight, because this is not a safe stock. AST SpaceMobile still generates very little revenue against a market value in the tens of billions, so investors are paying today for results that are mostly still in the future. Reaching full global coverage will require many more launches, and building satellites is expensive. The company has repeatedly raised cash by issuing new shares, diluting existing owners. Launches can slip, hardware can fail, and Starlink's direct-to-cell effort is racing for the same customers. Any one of those could stall the story.
"Acting now" doesn't have to mean buying with both hands. To me, it means recognizing that AST SpaceMobile is at a rare inflection -- the window where a speculative concept either becomes a working network or doesn't -- and doing your homework before the outcome is obvious to everyone.
For investors comfortable with real risk of loss, a small, deliberate position sized for volatility makes more sense than chasing the stock on the next headline. The opportunity is time-sensitive, and that cuts in both directions.
Key Takeaways ASTS is building a direct-to-cell satellite network for standard smartphones without special devices.ASTS supports defense efforts through the SHIELD initiative and the HALO Europa program.BlueBird LEO satellites extend voice, messaging and data coverage to remote and disaster-affected areas. AST SpaceMobile (ASTS - Free Report) is developing a satellite network that could transform defense communications by allowing standard smartphones to connect directly to satellites without specialized equipment. This capability can help military personnel and emergency responders stay connected when ground-based communication networks are unavailable or disrupted.
AST SpaceMobile's BlueBird low Earth orbit (LEO) satellites provide reliable connectivity across remote areas, maritime regions and disaster zones where conventional cellular coverage is limited. By supporting voice, messaging and data services on compatible smartphones, the network can improve operational flexibility while reducing reliance on dedicated satellite phones.
The company is also expanding its presence in the defense sector through programs such as the U.S. Missile Defense Agency's SHIELD initiative and the Space Development Agency's HALO Europa program. These efforts highlight the growing interest in resilient, space-based communication systems that complement existing military networks and strengthen national security.
As governments invest in resilient space-based infrastructure, AST SpaceMobile is likely to support future military and emergency communications. The company’s direct-to-cell satellite network could become a vital supplementary communication layer for mission-critical operations where reliable connectivity is essential.
How Are Other Competitors Performing?AST SpaceMobile faces competition from Globalstar, Inc. (GSAT - Free Report) and Viasat, Inc. (VSAT - Free Report) . Globalstar operates in a LEO satellite network that supports defense communications. Its satellites help military personnel stay connected in remote areas where regular communication networks are unavailable. The company works with government and defense agencies to provide reliable satellite connectivity.
Viasat provides satellite communications for military and government users. Its satellite network helps defense forces maintain secure and reliable communications during critical missions. The company also supports defense operations with satellite connectivity for aircraft, ships and ground forces.
ASTS’ Price Performance, Valuation and EstimatesAST SpaceMobile shares have gained 66.2% over the past year compared with the industry’s growth of 44.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, AST SpaceMobile trades at a forward price-to-sales ratio of 61.27, well above the industry average of 5.11.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have declined 48.5% to a loss of $1.47 per share over the past 60 days, while the same for 2027 has decreased to a loss of 38 cents per share.
Key Takeaways SPCX's 2026 sales estimate implies 179.5% growth versus 132.3% for ASTS.SpaceX trades at 36.57 times forward sales, well below AST SpaceMobile's 61.27 multiple.SpaceX is expanding into AI infrastructure, including compute satellites and enterprise AI. AST SpaceMobile, Inc. (ASTS - Free Report) and Space Exploration Technologies Corp. (SPCX - Free Report) are two leading communications services providers aiming to develop low-Earth orbit (LEO) satellite networks to deliver broadband and direct-to-device mobile connectivity. AST SpaceMobile is building the world’s first and only global cellular broadband network in space, accessible directly by standard smartphones (4G-LTE/5G devices) for commercial and government use, leveraging its extensive Intellectual Property and patent portfolio. The SpaceMobile Service is provided by a constellation of high-powered, large phased-array satellites in LEO using low-band and mid-band spectrums controlled by Mobile Network Operators (MNOs) in areas lacking terrestrial network coverage.
Operating a fleet of about 9,600 satellites in LEO (as of March 31, 2026), SpaceX's Starlink offers satellite Internet directly to consumers and business enterprises. The network served about 10.3 million Starlink subscribers across 164 countries and other markets. SpaceX reported a median residential download speed of 225 Mbps during peak hours.
Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for ASTSAST SpaceMobile is likely to strengthen its position as one of the leading space-based cellular broadband service providers in the market with the proposed deployment of three satellites in its direct-to-device (D2D) constellation in August. The company is slated to launch BlueBird 11, 12, and 13 satellites from Cape Canaveral, FL.
Utilizing large phased array antennas measuring approximately 2,400 square feet, AST SpaceMobile's technology is backed by more than 3,800 patents and patent-pending claims. This design aims to deliver global cellular coverage by eliminating dead zones and providing space-based connectivity to areas without broadband service. By connecting directly to standard smartphones at broadband speeds, these advanced phased arrays eliminate the need for special equipment, enhancing current mobile networks while ensuring seamless use of existing mobile phones. The SpaceMobile service is compatible with all major brands available in the market and connects directly to everyday mobile phones.
AST SpaceMobile has partnered with leading carriers, such as AT&T Inc. (T - Free Report) and Verizon Communications Inc. (VZ - Free Report) , to tap into a pre-existing pool of cell customers and raise funds to help build a worldwide satellite network. This has enhanced cellular coverage in the United States, essentially eliminating dead zones and empowering remote areas of the country with space-based connectivity.
However, unfavorable macroeconomic conditions, including rising inflation, higher interest rates, capital market volatility, tariff imposition and geopolitical conflicts, are negatively impacting the company’s operations. These have led to continued fluctuations in satellite material prices, resulting in increased capital costs and pressure on the company’s financial performance. In addition, AST SpaceMobile faces severe competition from existing and new industry leaders like SpaceX’s Starlink and Globalstar, which are developing satellite communications technology using LEO constellations. To combat such competitive pressure, ASTS has to continuously customize its network offerings, enhance the cost-effectiveness of its products and services and boost the satellite data networks, which increases operating costs and reduces margins.
The Case for SPCXSpaceX has transformed the launch industry through its reusable Falcon 9 rockets, significantly reducing launch costs and increasing mission frequency. The company now conducts more launches annually than any of its global competitors, giving it a commanding share of the commercial launch market. In addition, Starlink provides recurring subscription income and potentially higher long-term margins. The business also benefits from a powerful competitive advantage. SpaceX can launch its own satellites at a fraction of the cost of its competitors, allowing Starlink to expand its network faster and more efficiently. As global demand for reliable broadband connectivity increases, Starlink's prospects become solid.
The Elon Musk-led company is aiming to evolve into a vertically integrated artificial intelligence (AI) infrastructure company by combining advanced AI models, large-scale computing capabilities and satellite connectivity under one umbrella. The transformation is likely to unlock a significantly larger addressable market while diversifying the company's revenue base beyond launch services and Starlink. As part of the transition, xAI's flagship chatbot, Grok, will now operate under the SpaceXAI brand. The integration is expected to strengthen collaboration between the company's AI software, computing infrastructure and satellite network, creating a differentiated ecosystem that few competitors can match.
The company plans to deploy AI compute satellites as early as 2028, effectively creating space-based data centers capable of delivering large-scale computing capacity. This initiative leverages SpaceX's leadership in satellite deployment while addressing the growing demand for AI computing resources. Alongside its satellite ambitions, SpaceX continues to expand its Colossus data center platform, strengthening its position in AI infrastructure. SpaceX has also entered into a definitive agreement to acquire Anysphere in an all-stock deal valued at $60 billion. The buyout of a startup firm behind the rapidly growing AI coding assistant Cursor is primarily aimed at gaining a firmer footing in the enterprise AI market.
However, SpaceX is scaling several capital-intensive platforms simultaneously. The company is investing heavily in COLOSSUS, COLOSSUS II, Grok, enterprise offerings, compute services and future orbital AI compute. Management expects a multi-year investment cycle until sustained positive segment adjusted EBITDA is realized. The strategy may create a cost advantage if compute, energy and launch assets integrate as planned. Until then, AI adds uncertainty to margins, capital needs and consolidated earnings quality.
How Do Zacks Estimates Compare for ASTS & SPCX?The Zacks Consensus Estimate for AST SpaceMobile’s 2026 sales implies year-over-year growth of 132.3%, while EPS estimates suggest a decline of 9.7%. EPS estimates have trended southward (down 48.5%) over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SpaceX’s fiscal 2026 sales implies year-over-year growth of 179.5%. EPS estimates have declined 28.1% over the past seven days.
Image Source: Zacks Investment Research
Price Performance & Valuation of ASTS & SPCXOver the past year, AST SpaceMobile has gained 62.1% compared with the industry’s growth of 41.6%. SpaceX is up 12.7% since its IPO.
Image Source: Zacks Investment Research
SpaceX looks more attractive than AST SpaceMobile from a valuation standpoint. Going by the price/sales ratio, SpaceX’s shares currently trade at 36.57 forward sales, significantly lower than AST SpaceMobile’s 61.27.
Image Source: Zacks Investment Research
ASTS or SPCX: Which is a Better Pick?SpaceX carries a Zacks Rank #3 (Hold), while AST SpaceMobile carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both companies expect their sales to improve in 2026. SpaceX is steadily transforming from a pure-play aerospace company into a diversified AI infrastructure leader. Its aggressive investments in AI computing, the integration of SpaceXAI, expanding enterprise partnerships and plans for space-based data centers underscore management's conviction that AI will be a key driver of future growth. With relatively healthy fundamentals and a better Zacks Rank, SpaceX appears to be a better investment proposition at the moment.
Our AST SpaceMobile (NASDAQ:ASTS) 24/7 Wall St. price target is $91.65 over the next 12 months, implying 13.66% upside from the current price of $80.64. Our recommendation is buy with moderate confidence (0.5).
The 10-bagger question is fair given ASTS has already returned 542.04% over five years, but our base case does not see a near-term 10x. The path there requires flawless satellite deployment and MNO contract conversion over a multi-year window.
24/7 Wall St. Price Target Summary Metric Value Current Price $80.64 24/7 Wall St. Price Target $91.65 Upside 13.66% Recommendation BUY Confidence Level 50% A Volatile Path Into July, With Real Catalysts Underneath ASTS is down 7.06% over the past week and 13.85% over the past month, yet still up 76.84% over one year and 11.03% year to date. The stock sits 39% from its 52-week high of $133.86, well off the $36.08 low.
Q1 2026 revenue of $14.73 million missed the $36.58 million consensus, and EPS of -$0.66 came in well below the -$0.20 estimate, dragged by an $88.65 million induced conversion expense.
Underneath the noise, BlueBirds 8-10 are now operational in orbit per late-June updates, a Vodafone Spain direct-to-device agreement targets commercial availability by 2027, and Reddit chatter has cycled from a widely-shared “Down $240k in less than a month” loss post to renewed enthusiasm around a Rakuten contract. Cash and equivalents stood at $3.03 billion.
The Case for $108 and Beyond Bulls have a clean story. AST SpaceMobile has nearly 60 MNO partners covering 3 billion+ subscribers, over $1.20 billion in contracted partner commitments, and definitive agreements with Verizon and stc Group. Management is targeting 45 BlueBird satellites in orbit by year-end 2026 and FY2026 revenue of $150 million to $200 million.
CEO Abel Avellan called the setup a “fortress balance sheet” paired with the “industry’s largest global commercial ecosystem.” Our model’s bull case one-year price is $108.33, a 34.34% return, and the five-year bull case reaches $163.27.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AST SpaceMobile didn't make the cut. Grab the names FREE today.
The Risks Worth Watching The bear case starts with dilution and losses. Q1 2026’s $191.01 million net loss included $55.35 million in stock-based comp, and insiders have been active sellers. The CFO sold 45,809 shares at roughly $93.81, while the President sold 25,904 shares at $126.64. CEO Avellan entered a variable prepaid forward on 2.5 million shares for roughly $146.7 million, with a floor of $59.58.
Analyst sentiment is mixed with 2 buys, 7 holds, and 2 strong sells. A bear-case one-year price of $69.05 is realistic if launches slip. Bulls would counter that heavy capex and non-cash conversion charges reflect a company scaling a global constellation.
Hold With a Buyer’s Bias Our 24/7 Wall St. price target of $91.65, a buy rating, and moderate 50% confidence reflect a stock priced for execution. The key factor tipping the scale is the growing revenue backlog against a still pre-commercial income statement.
The bull thesis strengthens if BlueBirds 11-13 launch cleanly and FY2026 revenue tracks toward the upper end of guidance. The setup weakens if satellite cadence slips or if further convertible issuance compounds dilution before commercial ramp.
Looking ahead, here is where our model projects ASTS could trade over the next 12 months, assuming current growth trajectories and satellite deployment milestones hold.
Year 24/7 Wall St. Price Target 2026 $91.65 This projection assumes ASTS executes its constellation buildout and converts MOU partners into recurring service revenue. Meaningful upside or downside could come from FCC decisions on spectrum, MNO churn, or a faster than expected European commercial launch.
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Key Takeaways ASTS faces margin pressure from heavy investment, launch timing uncertainty and supply shocks.Competition from Starlink and Globalstar forces AST SpaceMobile to customize and spend more to keep up.Plans to deploy 45-60 satellites by the end of 2026; acquisitions add integration and management strain. AST SpaceMobile, Inc. (ASTS - Free Report) has surged 77.4% over the past year compared with the industry’s growth of 42.2%. It has outperformed peers like Aviat Networks, Inc. (AVNW - Free Report) and Comtech Telecommunications Corp. (CMTL - Free Report) . While Aviat has declined 13.2%, Comtech fell 22.2% over the same period.
One-Year ASTS Stock Price Performance
Image Source: Zacks Investment Research
ASTS Gears Up for Bluebird 11, 12 & 13 LaunchesAST SpaceMobile is likely to strengthen its position as one of the leading space-based cellular broadband service providers in the market with the proposed deployment of three satellites in its direct-to-device (D2D) constellation in August. The company is slated to launch BlueBird 11, 12, and 13 satellites from Cape Canaveral, FL.
Utilizing large phased array antennas measuring approximately 2,400 square feet, AST SpaceMobile's technology is backed by more than 3,800 patents and patent-pending claims. It aims to deliver worldwide cellular coverage by eradicating dead zones and providing space-based connectivity to areas that lack broadband service. By connecting directly to standard smartphones at broadband speeds, these advanced phased arrays eliminate the need for special equipment, enhancing current mobile networks while ensuring seamless use of existing mobile phones.
Uncertain Business Conditions Hurt ASTSDespite the buzz, AST SpaceMobile continues to navigate a challenging operating environment, plagued by margin and macroeconomic headwinds. The company operates in a capital-intensive phase, requiring substantial investments in satellite deployment, network infrastructure and commercialization efforts, which are difficult to secure amid a volatile geopolitical scenario. In addition, execution-related challenges, including launch timing uncertainties, supply chain disruptions and potential cost inflation, are likely to dent its growth prospects.
Unfavorable macroeconomic conditions, including rising inflation, higher interest rates, capital market volatility, tariff imposition and geopolitical conflicts, have adversely impacted AST SpaceMobile. These have led to continued fluctuations in satellite material prices, resulting in increased capital costs and pressure on the company’s financial performance.
Depleting Margins Add to the WoesThe company faces severe competition from existing and new industry leaders like Space Exploration Technologies Corp.’s (SPCX - Free Report) Starlink and Globalstar. To combat such competitive pressure, AST SpaceMobile has to continuously customize its network offerings, enhance the cost-effectiveness of its products and services and boost its satellite data networks to remain ahead of the competition, which often results in higher operating costs.
Due to high infrastructure setup costs and research and development expenses for highly sophisticated satellite technology, AST SpaceMobile expects significant expenditures in the coming months to build and launch the next crop of satellites, in line with its expansion plans to serve the full spectrum of U.S. subscribers. This is largely because the company is slated to deploy about 45-60 satellites in orbit by the end of 2026.
In addition, AST SpaceMobile continues to acquire a large number of companies. While this improves revenue opportunities, it adds to integration risks. These include adverse legal, organizational and financial challenges, loss of key customers and distributors and increased demands on management’s time.
Image Source: Zacks Investment Research
Estimate Revision TrendEarnings estimates for AST SpaceMobile for 2026 and 2027 have narrowed 65.2% and 200% to a loss of $1.47 and a loss of 38 cents per share, respectively, over the past year. The negative estimate revision depicts bearish sentiments about the stock’s growth potential.
Image Source: Zacks Investment Research
End NoteThe successful launch of the Bluebird satellites will likely transform network connectivity and help bridge the digital divide, significantly expanding its global presence and enhancing AST SpaceMobile’s capabilities in providing ubiquitous connectivity.
However, the downtrend in estimate revisions portrays skepticism about the business model. Stiff competitive pressure and an uncertain geopolitical environment are headwinds for the company. High operating expenses remain an overhang as well. Consequently, it might be a prudent investment decision to avoid the stock at the moment.
AST SpaceMobile carries a Zacks Rank #4 (Sell) at present.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AST SpaceMobile, Inc. (ASTS - Free Report) closed the most recent trading day at $80.64, moving -5.27% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 0.72%. Elsewhere, the Dow saw an upswing of 0.3%, while the tech-heavy Nasdaq appreciated by 1.12%.
Coming into today, shares of the company had lost 9.05% in the past month. In that same time, the Computer and Technology sector lost 6.12%, while the S&P 500 lost 0.9%.
Market participants will be closely following the financial results of AST SpaceMobile, Inc. in its upcoming release. The company is predicted to post an EPS of -$0.28, indicating a 31.71% growth compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $34.32 million, indicating a 2858.28% increase compared to the same quarter of the previous year.
ASTS's full-year Zacks Consensus Estimates are calling for earnings of -$1.47 per share and revenue of $164.76 million. These results would represent year-over-year changes of -9.7% and +132.32%, respectively.
Investors should also note any recent changes to analyst estimates for AST SpaceMobile, Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. AST SpaceMobile, Inc. currently has a Zacks Rank of #4 (Sell).
The Wireless Equipment industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 198, this industry ranks in the bottom 20% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
AST SpaceMobile (ASTS 1.17%) stock closed out this shortened trading week with massive gains. The company's share price gained 31.2% across the stretch. The S&P 500 gained 1.8% across the period, and the Nasdaq Composite rose 2.1%.
In addition to bullish momentum for the broader market, AST's valuation got a huge boost from news that another player in the space industry was making a big acquisition. Rocket Lab is on track to acquire Iridium Communications in an $8 billion deal, and investors see that as a bullish sign for AST.
Image source: Getty Images.
AST investors are loving Rocket Lab's latest move On June 29, Rocket Lab published a press release announcing it had entered into a deal to acquire Iridium at a valuation of roughly $8 billion. The half-cash, half-stock deal will see Rocket Lab acquire all outstanding shares of Iridium at a price of $54 per share.
Like AST, Iridium is a provider of satellite-based communications. Crucially, the deal will allow Rocket Lab to acquire Iridium's spectrum resources and satellite-constellation infrastructure -- a move that should significantly accelerate its push into the communications space. The development could be a promising indicator for AST.
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What does the Iridium acquisition mean for AST stock? At the time of the acquisition's announcement, Rocket Lab's $8 billion purchase price represented a 24% premium compared to Iridium's last closing price. AST's spectrum resources and satellite network are broadly viewed as being superior to Iridium's, and the stock saw big valuation gains in conjunction with news that Rocket Lab was willing to pay a substantial premium to acquire a smaller player in the category. While space stocks will likely continue to see high levels of volatility in near-term trading, it's not surprising that AST investors are seeing the Iridium acquisition as a significant bullish indicator.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile and Rocket Lab. The Motley Fool has a disclosure policy.
The roller coaster ride continues for AST SpaceMobile NASDAQ: ASTS shareholders.
After space stocks were battered in the wake of the SpaceX NASDAQ: SPCX IPO in June, AST SpaceMobile rewarded patient investors with its best daily performance in two years.
Shares of the Midland, Texas-based space-based direct-to-device (D2D) cellular broadband provider surged 21% on Monday, June 29, to close out the second quarter on a strong note. This was a welcome reprieve after a month in which the market punished ASTS despite the successful launch of its low Earth orbit (LEO) BlueBird satellites 8, 9, and 10.
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AST SpaceMobile, Inc. (ASTS) Price Chart for Friday, July, 3, 2026
The catalyst for this week’s big jump was Japan’s plan to grant up to 148 billion yen (approximately $912 million) to a satellite communications project led by Rakuten OTCMKTS: RKUNY. That put AST SpaceMobile’s Rakuten partnership back into the spotlight while raising hopes for a major D2D rollout in Japan.
Japan Announces Massive Space-Based Telecom SubsidyAST SpaceMobile Today
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$133.86Price Target$85.09
Motivated by concerns that critical communications infrastructure has become too dependent on foreign satellite networks such as SpaceX’s Starlink, Japan is using the Japan Low Earth Orbit Satellite Communications Project (J-LEO) to support a more resilient domestic alternative.
The program is expected to focus on satellite connectivity for remote areas, disaster response, and emergency communications, giving the Rakuten-led effort strategic value beyond a standard commercial telecom rollout.
According to the Japan Times, Japan's Ministry of Internal Affairs and Communications secured funding for the J-LEO in 2025, but the tender process didn’t conclude until last month. The plan calls for massive investment in the build-out of a homegrown D2D satellite network over the next three years.
Beyond the subsidy news, Rakuten announced plans for a joint venture with AST SpaceMobile that will secure full regulatory approval for D2D operations in Japan. Initial commercial services are expected to begin later in 2026, with a full rollout slated for 2027.
The move could become a boon for AST SpaceMobile. Having narly $1 billion in sovereign-backed capital would give the company a clearer template for monetizing its technology through carrier- and government-backed international networks.
Launch Window Set for BlueBirds 11, 12, and 13After the successful June launch of its latest three satellites, AST SpaceMobile says it intends to launch BlueBirds 11, 12, and 13 from Cape Canaveral, Florida, in the first half of August. That will go a long way in keeping the company on track to meet its goal of putting 45 LEO satellites in orbit by the end of 2026.
“These next-generation satellites are expected to deliver nearly double the peak data speeds of AST SpaceMobile's initial Block 1 BlueBird satellites, which recently achieved peak download speeds of 98.9 Mbps directly to standard smartphones," according to a recent company press release.
Beyond 2026, the company is scaling towards a constellation of 45 to 60 satellites, which it will require to provide initial continuous coverage in the United States and Japan. That number will need to increase to provide continuous global coverage, with approximately 90 BlueBirds required.
Ultimately, AST SpaceMobile could have as many as 248 satellites deployed to expand its network, increase its data capacity, and support a massive global clientele. However, the company has discussed a long-term plan that could involve up to 540 dual-use satellites over the next decade.
Despite Catalysts, Wall Street Remains TepidDespite the news and subsequently bullish price action, the jury is still out on AST SpaceMobile.
Current Price$85.13High Forecast$108.00Average Forecast$85.09Low Forecast$45.60AST SpaceMobile Stock Forecast Details
In Q2, the stock saw a series of less-than-inspiring ratings. On May 29, William Blair reissued a Market Perform rating on ASTS, while Wall Street Zen lowered its rating from a Sell to a Strong Sell on April 15.
On May 12, B. Riley Financial increased its ASTS price target from $75 to $85; however, the firm assigned the stock a Neutral rating. Also on May 12, UBS Group lowered its price target from $85 to $80, while in a research note dated June 24, Weiss Ratings reiterated its Sell rating.
Based on the 10 analysts currently covering ASTS, the stock receives a consensus Reduce rating, with a 12-month price target implying around 4% upside from current levels. Meanwhile, current short interest stands at a worrisome 20.35% of the float, or nearly 62.5 million shares valued at $5.47 billion.
However, AST SpaceMobile has agreements with nearly 60 global mobile network providers, totaling more than 3 billion subscribers, and strategic partnerships in place with AT&T NYSE: T, Verizon NYSE: VZ, Vodafone NASDAQ: VOD, Rakuten, Alphabet NASDAQ: GOOGL, and real estate investment trust American Tower NYSE: AMT, among others.
Long-term, the company should continue to enjoy top-line growth that translates into strong earnings for patient investors.
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AST SpaceMobile is a public venture-stage infrastructure play, targeting direct-to-phone satellite connectivity as a wholesale layer for mobile network operators. ASTS's investment case hinges on technical execution, major MNO partnerships, regulatory wins, and a scalable partner-driven revenue model, not current financials. With $3.5B in cash, FCC authorization, and a 2026 deployment plan, ASTS is positioned for commercial activation but faces execution and competitive risks.
Shares of AST SpaceMobile (ASTS 2.07%) slipped 21.6% in June, according to data from S&P Global Market Intelligence. The previous high-flying satellite internet disruptor has hit a roadblock after the IPO of Space Exploration Technologies (SPCX +2.35%) and its plans to compete with the company.
Here's why AST SpaceMobile stock fell in June, and whether it's worth buying the dip in July.
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A race in satellite internet AST SpaceMobile can be credited as one of the first companies to believe you could build a constellation of satellites that would directly connect mobile devices on Earth to the internet. SpaceX's Starlink service already has 10 million subscribers but requires upfront purchases of antenna terminals, making it less transportable for users.
The company that first delivers direct-to-device internet worldwide could have a significant first-mover advantage. Coming into this year, it looked like AST SpaceMobile had the lead, including its partnership with mobile communications providers in various wealthy countries like the United States, which is why investors had taken the stock to the moon.
However, developments so far this year have caused investors to hit the brakes. The company has delayed its roll-out of full service in the United States until 2027 after a setback with a Blue Origin launch. Every time AST SpaceMobile delays its commercial launch, it gives SpaceX more opportunity to compete and build its own direct-to-device service with Starlink.
SpaceX already has millions of subscribers, offers messaging services direct-to-device with Starlink, and just raised billions in its IPO to fund future growth. With its own rockets to send payloads into orbit, Starlink could quickly catch up and pass AST SpaceMobile with these direct-to-device ambitions. This is the main reason AST SpaceMobile's stock fell in June.
Image source: Getty Images.
Should you buy AST SpaceMobile stock? The idea for direct-to-device satellite internet was fantastic, and you have to credit AST SpaceMobile for having this vision for the future. However, its ability to get from a standing start to global satellite internet coverage should be put into question.
AST SpaceMobile generates close to zero revenue today. It is currently burning over $1 billion in free cash flow a year, with further losses likely in the quarters ahead as more of its massive satellites are launched into orbit. At a market cap of $32.5 billion, much of AST SpaceMobile's future growth is already priced into its stock.
Competing with SpaceX is not going to be easy because the company has an advantage in getting payloads to orbit with its own rockets. This should make any investor nervous about buying the dip on AST SpaceMobile in July.
Medline announced that it will report second-quarter financial results on Wednesday, Aug. 5. Analysts expect the company to report quarterly earnings at 32 cents per share on revenue of $7.52 billion.
AST SpaceMobile, Inc. (NASDAQ:ASTS) is a “great speculative” stock, Cramer said. “I think you can make money in two years. I would go for it.”
The company announced on June 23 that its next three BlueBird satellites are scheduled to launch in the first half of August, expanding its space-based cellular broadband network.
AST SpaceMobile announced Tuesday that BlueBird satellites 11, 12, and 13 are targeted to launch aboard a Falcon 9 rocket from Cape Canaveral, Florida, in the first half of August.
NuScale Power announced it will host a conference call to review second-quarter results on Wednesday, Aug. 5. Analysts expect the company to report a quarterly loss of 13 cents per share on revenue of $14.71 million.
Price Action Nuscale Power shares gained 1.2% to settle at $10.15 on Wednesday. Medline shares gained 5.8% to close at $41.73. AST SpaceMobile shares fell 3.1% to settle at $86.10. Photo via Shutterstock
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AST SpaceMobile, Inc. (ASTS - Free Report) ended the recent trading session at $88.86, demonstrating a +2.41% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.79%. Meanwhile, the Dow experienced a rise of 0.26%, and the technology-dominated Nasdaq saw an increase of 1.52%.
Shares of the company have depreciated by 17.87% over the course of the past month, underperforming the Computer and Technology sector's loss of 4.61%, and the S&P 500's loss of 1.82%.
Investors will be eagerly watching for the performance of AST SpaceMobile, Inc. in its upcoming earnings disclosure. On that day, AST SpaceMobile, Inc. is projected to report earnings of -$0.28 per share, which would represent year-over-year growth of 31.71%. In the meantime, our current consensus estimate forecasts the revenue to be $34.32 million, indicating a 2858.28% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of -$1.47 per share and a revenue of $164.76 million, demonstrating changes of -9.7% and +132.32%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for AST SpaceMobile, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, AST SpaceMobile, Inc. holds a Zacks Rank of #4 (Sell).
The Wireless Equipment industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 213, positioning it in the bottom 13% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
