AST SpaceMobile Surges 149% YTD Amid Bezos' Potential Investment and Musk-Trump Feud

AST SpaceMobile, Inc. (NASDAQ:ASTS) has soared 149% YTD due to potential investment by billionaire Jeff Bezos and billionaire Elon Musk's ongoing spat with President Donald Trump. Investors speculate that a partnership between AST SpaceMobile and Blue Origin is in the works, and the company is gaining ground from Musk and Trump's feud, potentially shifting government contracts away from SpaceX.

AST SpaceMobile Inc. (NASDAQ:ASTS), a company specializing in space-based cellular broadband networks, has experienced a significant surge in its stock price, rising 149% year-to-date (YTD). This remarkable performance is attributed to several factors, including potential investments by billionaires Jeff Bezos and Elon Musk, as well as the ongoing spat between Musk and President Donald Trump.

The company has been speculated to be in talks with Blue Origin, Bezos' aerospace company, which could lead to a strategic partnership. Additionally, the ongoing feud between Musk and Trump has led to speculation that government contracts traditionally awarded to SpaceX could be shifted to AST SpaceMobile. This potential shift in government contracts has contributed to the positive sentiment surrounding the company's stock.

In the latest market close, AST SpaceMobile's stock was up +2.95% at $52.63, outperforming the broader market indices such as the S&P 500, which gained 0.32%, and the tech-heavy Nasdaq, which appreciated by 0.26%. Over the past month, the company's shares have seen an increase of 27.48%, surpassing the Computer and Technology sector's gain of 7.22% and the S&P 500's gain of 4.51%.

Analysts expect AST SpaceMobile to post earnings of -$0.19 per share in its upcoming release, marking a year-over-year decline of 35.71%. However, the company's revenue is expected to reach $5.15 million, up 472.22% from the prior-year quarter. For the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$1 per share and a revenue of $62.5 million, indicating changes of -51.52% and +1314.58%, respectively, from the former year.

The Zacks Rank, a quantitative model that includes estimate changes, currently rates AST SpaceMobile as #4 (Sell). The Wireless Equipment industry, of which AST SpaceMobile is a part, holds a Zacks Industry Rank of 211, positioning it in the bottom 15% of all 250+ industries.

While the stock has seen significant gains, investors should remain cautious. The company's forward-looking statements caution against undue reliance on future projections, as they involve risks and uncertainties that could cause actual results to differ materially from those expected. Factors such as the outcome of legal proceedings, changes in applicable laws or regulations, and the possibility of being adversely affected by other economic, business, or competitive factors could impact the company's performance.

References:
[1] https://www.businesswire.com/news/home/20241023158745/en/AST-SpaceMobile-Secures-Initial-Contract-with-Space-Development-Agency-SDA-as-a-Prime-Contractor-to-the-United-States-Government
[2] https://www.nasdaq.com/articles/ast-spacemobile-inc-asts-rises-higher-market-key-facts