AST SpaceMobile (ASTS) stock surged over 11% on Wednesday after the satellite operator announced a commercial agreement with Verizon Communications (VZ). Under this deal, ASTS will provide direct-to-device connectivity for cellphones across the United States.
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The partnership aims to expand Verizon’s network coverage, particularly in remote areas, by integrating AST SpaceMobile’s low-Earth-orbit satellites with Verizon’s existing terrestrial network.
This means Verizon customers will soon be able to get cell reception virtually anywhere in the continental U.S., without needing specialized satellite equipment. The service is expected to launch in 2026.
The deal positions AST SpaceMobile as a key player in the race to expand mobile coverage beyond traditional towers.
AST’s Path in Satellite Connectivity
Importantly, AST SpaceMobile has already partnered with AT&T (T), and now, with Verizon on board, it is working with two of the biggest U.S. wireless carriers. These deals point to the rising demand for reliable phone service in hard-to-reach areas. With backing from AT&T and Verizon, AST is well-positioned to become a top name in satellite-to-smartphone technology.
It must be noted that AST SpaceMobile launched its first five commercial satellites into low Earth orbit in September 2024. It now plans to have 45 to 60 satellites in orbit by the end of 2026 to ensure continuous coverage.
AST SpaceMobile’s ability to secure market share depends on factors like successfully deploying satellites, improving its 4G/5G tech, and clearing regulatory hurdles. Delays could give rivals such as Elon Musk’s Starlink an opportunity to gain ground.
Is ASTS a Good Stock to Buy?
Turning to Wall Street, ASTS stock has a Moderate Buy consensus rating based on four Buys, three Holds, and one Sell assigned in the last three months. At $57.27, the average AST SpaceMobile stock price target implies a 30.11% downside risk.
