AST SpaceMobile Shares Rally 8.63% on Landmark Verizon Deal, 7-Day Gain of 66.26%

AST SpaceMobile (NASDAQ: ASTS) surged 8.63% in today’s session, marking a seven-day winning streak with a cumulative gain of 66.26%. The stock reached its highest level since October 2025, with an intraday rally of 22.29%, driven by renewed investor confidence in its commercialization progress and strategic partnerships.

The recent momentum follows a landmark agreement with Verizon to deploy direct-to-cell (DTC) satellite connectivity for smartphones across the U.S. by 2026. This partnership, the first of its kind, validates AST’s technology as a viable solution for bridging connectivity gaps in remote areas. The deal also signals industry recognition of AST’s ability to integrate space-based infrastructure with terrestrial networks, enhancing its position as a pioneer in the DTC sector.

However, the company’s financial challenges persist. AST is burning through cash at an annual rate exceeding $675 million, with $924 million in reserves as of the latest report. While the soaring stock price has elevated its valuation to nearly $30 billion, critics argue this reflects speculative optimism rather than current revenue or operational milestones. The company has no immediate plans for equity raises but retains flexibility to address liquidity needs if required.

Investor enthusiasm is further fueled by broader trends in satellite communications. AST’s first-mover advantage in DTC technology has attracted both institutional and retail investors, particularly as competitors like Starlink and Project Kuiper ramp up efforts in the space. Yet, the 2026 commercialization timeline remains a key risk factor. Delays in satellite deployment, regulatory hurdles, or technical setbacks could undermine momentum. Additionally, the growing competitive landscape necessitates sustained innovation to maintain AST’s edge.

Despite these risks, the Verizon partnership has bolstered AST’s credibility and expanded its market potential. The ability to balance high operational costs with capital-raising options will determine its long-term trajectory. For now, the stock’s rally reflects a mix of strategic validation, industry tailwinds, and speculative demand, positioning AST at the forefront of a transformative shift in mobile connectivity.