5 hours ago
3
Marc Guberti, The Motley Fool
Wed, December 10, 2025 astatine 6:35 AM CST 4 min read
-
ASTS has generated astir of its gains implicit the past 2 years, beating the S&P 500 successful the process.
-
Space-based cellular broadband networks are a semipermanent accidental that continues to pull ample clients.
-
A precocious valuation and rising losses tin hamper the banal successful the abbreviated run, but the semipermanent outlook is inactive bright.
AST SpaceMobile (NASDAQ: ASTS) was a atrocious concern from 2020 to the commencement of 2024. The banal woefully underperformed the S&P 500 during that agelong and went from $20 per stock to $2 per share. However, that each changed successful May 2024 erstwhile the institution partnered with AT&T (NYSE: T) and announced its archetypal commercialized outer launches for the summer.
Because of the gains it made successful 2024 and 2025, ASTS cumulatively outperformed the S&P 500 implicit the past 5 years. The abstraction banal is up by 621% implicit the past 5 years compared to the S&P 500's 85% gain.
The spread becomes much evident arsenic you constrictive the clip frame. The S&P 500's 73% summation implicit 3 years doesn't comparison with ASTS's 1,550% summation implicit the aforesaid time. AST SpaceMobile has rallied by 251% this year, portion the S&P 500 has managed a one-year summation of 16.4%.
The concern with AT&T and its commercialized outer launches were large turning points for the company. AST SpaceMobile has gone connected to motion ample contracts with Verizon Communications (NYSE: VZ) and STC Group, portion negotiating a declaration with a U.S. authorities customer. Those customers are portion of the $1 cardinal successful aggregate contracted gross that the institution has secured.
AST SpaceMobile's space-based cellular broadband web is filling successful the gaps that terrestrial signals can't cover. The institution works straight with telecom companies and countries alternatively of offering a direct-to-consumer product.
The company's quality to triumph implicit high-paying customers is an advantage, particularly arsenic its commercialized satellites proceed to scale. These satellites tin link billions of smartphones to the net wherever radical travel.
However, the banal besides trades astatine a 778 price-to-sales ratio. That's a steep asking terms for immoderate company, particularly 1 that regularly burns done cash. AST SpaceMobile reported a $122.9 cardinal nett nonaccomplishment successful Q3 and lone $14.7 cardinal successful revenue. Those numbers volition marque it hard for AST SpaceMobile to outperform the S&P 500 again successful 2026, but semipermanent outperformance is likely.
English (CA) · 
English (US) · 
Spanish (MX) ·