AST SpaceMobile Stock (ASTS) Rallies amid Potential Amazon Partnership

AST SpaceMobile (ASTS) extended its rally on Wednesday as excitement grew about a possible partnership with Amazon (AMZN). The speculation picked up after AST board member Adriana Cisneros posted a photo with Jeff Bezos on Instagram, saying, “Amazing things are happening at AST & Science + @blueorigin.” Interestingly, Cisneros was the first institutional investor in AST and remains on its board, which adds credibility to the idea that something important might be developing.

Indeed, according to five-star Scotiabank analyst Andres Coello, there are big opportunities for ASTS, Amazon, and Blue Origin to work together, especially with Amazon’s Project Kuiper, which aims to provide satellite internet. Coello mentioned that investors and analysts are seriously discussing the idea of Jeff Bezos becoming an investor in ASTS because of his strong interest in space through Blue Origin.

It is worth noting that Amazon has plans to invest between $13 billion and $16 billion in its 3,236-satellite Kuiper constellation, while ASTS’s market cap currently sits at $8.3 billion. As a result, Scotiabank said that it wouldn’t be surprising if Amazon and ASTS are already talking about a bigger deal that possibly involves Blue Origin’s New Glenn rocket to launch ASTS’ satellites and even commercial or investment agreements between the two.

Is ASTS Stock a Good Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on ASTS stock based on five Buys and one Hold assigned in the past three months, as indicated by the graphic below. After a 200% rally in its share price over the past year, the average ASTS price target of $38.48 per share implies 38.4% upside potential.

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