AST SpaceMobile Inc (NASDAQ: ASTS) experienced a significant rise in its share price on Wednesday, reaching an all-time peak as renewed investor interest in the space sector gained momentum. This surge follows the company’s announcement of its forthcoming BlueBird 7 satellite deployment, slated for late February. Investors are closely watching the stock as it approaches crucial resistance levels, fueled by both company-specific developments and broader industry speculation.
The upcoming BlueBird 7 mission is expected to deploy the largest commercial communications array in low Earth orbit, built to deliver peak data transmission speeds of up to 120 Mbps. This mission holds particular significance as it marks the inaugural usage of the New Glenn rocket, a launch vehicle designed to carry multiple BlueBird satellites. AST SpaceMobile aims to deploy between 45 and 60 satellites by the end of the current year, signaling an aggressive expansion of its satellite constellation.
In addition to its satellite deployment plans, AST SpaceMobile has secured a strategic position within the U.S. Missile Defense Agency’s SHIELD program. This inclusion may pave the way for future task orders from the agency, potentially enhancing the company’s government contracts segment. Complementing these developments, AST SpaceMobile boasts an extensive patent portfolio encompassing over 3,800 patents focused on space-based voice, data, and streaming services. This intellectual property strengthens its technological edge in providing communication services directly from space.
Investor enthusiasm around AST SpaceMobile has been further augmented by reports of a potential upcoming initial public offering by SpaceX, a major player in the space industry. A Financial Times report suggests that Elon Musk is contemplating taking SpaceX public in mid-June, possibly aligning with significant celestial events such as a Jupiter–Venus conjunction and Musk’s birthday. The prospective offering is rumored to seek capital in the vicinity of $50 billion, with valuations anticipated to rank among the largest ever for a public listing. However, industry bankers have cautioned that executing an IPO by June could prove challenging due to regulatory filing timelines and roadshow obligations. Moreover, SpaceX has not officially announced any IPO plans at this stage.
Despite the absence of confirmed plans for a SpaceX IPO, the mere speculation has served to infuse the sector with renewed optimism. This positive sentiment has acted as a catalyst for publicly traded space-related equities, including AST SpaceMobile, as investors rotate capital toward companies poised to benefit from growth in space technologies and services.
Looking at stock technicals, AST SpaceMobile is demonstrating remarkable market strength. The shares are trading 28.1% above their 20-day simple moving average (SMA) and a substantial 73.6% above their 100-day SMA, indicating strong momentum over both short-term and medium-term frames. Over the past twelve months, the stock price has surged approximately 514.85%, positioning it near its 52-week highs.
The relative strength index (RSI) stands at 60.12, which situates the stock in a neutral zone not indicative of overbought or oversold conditions. Meanwhile, the moving average convergence divergence (MACD) indicator lies above its signal line, suggesting bullish momentum. These mixed technical signals suggest the potential for continued gains while indicating that momentum may be subject to fluctuations.
AST SpaceMobile specializes in the design and manufacture of satellites aimed at creating a cellular broadband network in space. This network intends to operate directly with unmodified standard mobile devices, utilizing off-the-shelf phones. The company leverages its deep intellectual property foundation to provide cost-effective, high-speed cellular broadband services to users located outside of terrestrial cellular coverage areas. Its services seek to address connectivity gaps commonly experienced by mobile subscribers, expanding mobile broadband reach via space-based infrastructure.
The market is anticipating the company’s upcoming earnings announcement scheduled for March 2. Analysts project an earnings per share (EPS) loss of 19 cents, slightly greater than the prior-year loss of 18 cents. Revenue expectations are notably optimistic, with estimates rising to approximately $39.03 million from $1.92 million reported the previous year.
Analyst opinions on the stock remain divided. The consensus rating is a Hold, with an average price target of $61.08. Recent analyst adjustments include B. Riley Securities downgrading the rating to Neutral while raising the target price to $105 on January 13. Scotiabank has moved between Sector Underperform and Sector Perform ratings, setting price targets near $45.60.
The Benzinga Edge scorecard identifies AST SpaceMobile’s momentum as bullish, with a score of 99.10, reflecting its strong performance relative to the broader market. This momentum indicates that the stock is currently outperforming many of its peers, although investors are advised to remain vigilant regarding potential volatility ahead of earnings.
Fundamental to the stock’s liquidity are its significant weights within several exchange-traded funds focused on aerospace and space technologies. The First Trust Indxx Aerospace & Defense ETF (NYSE: MISL) holds a 4.27% weighting in AST SpaceMobile, Defiance Connective Technologies ETF (NASDAQ: SIXG) has a 3.48% allocation, and the Procure Space ETF (NASDAQ: UFO) features ASTS with a 9.05% weight. Movements in these ETFs could precipitate correlated buying or selling pressure on the stock.
On Wednesday, AST SpaceMobile’s shares closed up 8.88%, ending the trading day at $121.23. During the session, the stock reached an intraday all-time high of $124.32, reflecting the strong investor sentiment driving the price upward.
Overall, AST SpaceMobile’s recent price performance is supported by substantive operational advancements, participation in defense initiatives, and a favorable industry sentiment bolstered by potential major space sector IPO activity. The company’s efforts to bridge mobile connectivity gaps via satellite broadband networks remain central to its growth narrative.