AST SpaceMobile: A Disruptor in Satellite Internet, But is it a Once-In-A-Generation Buying Opportunity?

AST SpaceMobile is launching a direct-to-device satellite internet service, spending heavily upfront, but expecting rapid revenue growth. The company has spent $543 million in the last year and has $1.5 billion in liquidity. With a massive constellation in the works, AST SpaceMobile aims to disrupt existing satellite internet providers and generate billions in annual revenue. However, the stock has surged significantly and may be overvalued today.

AST SpaceMobile, a company specializing in space-based cellular broadband networks, has secured critical launch agreements to establish continuous global coverage. The company aims to deploy up to 60 Block 2 satellites into low Earth orbit, using both existing launch vehicles and Blue Origin's New Glenn rocket from Cape Canaveral Space Force Station in 2025 and 2026 [1].

These satellites, known as BlueBirds, will offer significantly enhanced bandwidth capacity, with each satellite featuring over 5,600 coverage cells capable of delivering up to 40 MHz of bandwidth and peak data speeds reaching 120 Mbps [1]. This will enable comprehensive coverage across the U.S. and other strategic regions, including Europe, Japan, and the U.S. Government.

AST SpaceMobile's President, Scott Wisniewski, expressed confidence in the company's progress, stating, "We have now contractually secured orbital launch capacity during 2025 and 2026 to enable continuous cellular broadband service coverage of the AST SpaceMobile network" [1]. This strategic move comes as the company aims to reach its goal of providing continuous cellular broadband service to hundreds of millions of users worldwide.

The company's recent financial investments highlight its commitment to growth. Jump Financial LLC, for instance, invested approximately $14.75 million in AST SpaceMobile, acquiring 648,625 shares and owning about 0.20% of the company [2]. Despite reporting a loss of ($0.41) EPS for the quarter, missing analysts' consensus estimates of ($0.19), institutional investors now hold 60.95% of AST SpaceMobile's stock, indicating strong interest from large financial entities [2].

While the stock has surged significantly, it may be overvalued today. AST SpaceMobile has spent heavily upfront, investing $543 million in the last year and maintaining $1.5 billion in liquidity. The company's ambitious plans to disrupt existing satellite internet providers and generate billions in annual revenue are ambitious but face significant challenges [1, 2].

References:
[1] https://www.spacedaily.com/reports/AST_SpaceMobile_secures_launch_agreements_for_global_space_based_broadband_network_999.html
[2] https://www.marketbeat.com/instant-alerts/filing-jump-financial-llc-invests-1475-million-in-ast-spacemobile-inc-asts-2025-08-24/