AST SpaceMobile (ASTS) shares jumped after earnings as the company outlined a fully funded satellite deployment plan that, if successful, could put it in direct competition with Elon Musk’s SpaceX in the satellite broadband market.
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ASTS Stock Jumps on Fully Funded Satellite Plan
AST SpaceMobile stock climbed almost 10% in early trading Tuesday to $50.37 after reporting quarterly results late Monday. The key takeaway for investors was management’s announcement that it now has the funding in place to launch 45 to 60 satellites by 2026. That scale is critical for the company’s vision to build the first global cellular broadband network in space.
ASTS stock has already surged more than tenfold since early 2024, fueled by partnerships with major telecom operators and the successful launch of its first commercial satellites. Monday’s update added more momentum to a rally that has been driven by investor confidence in the company’s direct-to-device 5G ambitions.
AST SpaceMobile Aims to Expand Service While Managing Delays
AST SpaceMobile aims to deliver 5G-quality voice, data, and video coverage worldwide. The company expects to offer nationwide intermittent service in the U.S. by the end of this year, with the U.K., Japan, and Canada coming online in the first quarter of 2026.
Still, execution speed remains a concern. The company’s first 20 satellites were initially scheduled for launch in 2023, yet only five commercial units and one test model are currently in orbit. CEO Abel Avellan told analysts that launches will now occur every one to two months in 2025 and 2026, with each sending up six to eight satellites at a cost of $21 million to $23 million each.
Analyst Views Are Split on Execution Risks
Some analysts are cautious about whether AST SpaceMobile can meet its ambitious service milestones. Oppenheimer’s Timothy Horan acknowledged management’s target for limited service in key markets by late 2025, but said he remains “skeptical” about the early 2026 goal for full voice, video, and data capabilities. He has a Perform rating on the stock.
Others see more upside. Cantor Fitzgerald analyst Colin Canfield believes AST’s strengths in digital payload technology and its high-profile tech partners could make government contracts a major growth driver in the coming years. He rates the stock Overweight with a $30 price target.
AST SpaceMobile Races against Musk’s Starlink and Other Rivals
AST SpaceMobile is in a high-stakes race against Elon Musk’s Starlink, Apple-backed Globalstar (GSAT) (AAPL), and Amazon’s Project Kuiper (AMZN). These competitors are already pushing aggressively into satellite-based internet and direct-to-device communications.
So far, AST’s revenue remains small, with $1.2 million booked in the June quarter. But management projects between $50 million and $75 million in revenue for the second half of 2025, mostly from government and commercial customers. That expected jump will be an important test of whether its technological edge can translate into meaningful market share.
Is AST SpaceMobile a Good Stock to Buy?
According to TipRanks, seven Wall Street analysts have issued ratings for AST SpaceMobile in the past three months. Out of these, five recommend Buy and two suggest Hold, with no Sell ratings. This gives the stock a consensus rating of Moderate Buy.
The average 12-month ASTS price target stands at $47.84, implying a potential 4.18% upside from Monday’s close at $45.92.
