AST SpaceMobile: A Potential Disruptor in Satellite Internet Market

AST SpaceMobile has soared from $2 to $45 in recent years, and some argue it's still undervalued despite being pre-revenue. The company plans to disrupt satellite internet providers with its direct-to-device connectivity innovation, potentially generating billions in annual revenue. AST SpaceMobile has spent $543 million on capex and has $1.5 billion in liquidity to fund growth. Once operational, the company plans to quickly turn on the revenue spigot by partnering with telecom providers and targeting 3 billion existing smartphone and internet customers.

AST SpaceMobile (NASDAQ: ASTS) has experienced a remarkable surge in its stock price, rising from around $2 per share in April 2024 to $45 as of August 21, 2025 [1]. The company is positioning itself as a disruptor in the satellite internet market with its innovative direct-to-device connectivity technology. Despite being pre-revenue, some investors argue that the stock is still undervalued due to its potential to generate billions in annual revenue.

AST SpaceMobile plans to disrupt existing satellite internet providers like Starlink and upcoming services like Amazon's Project Kuiper by offering direct-to-device connectivity. The company has spent $543 million on capital expenditures over the past twelve months to develop and launch satellites, with an additional $1.5 billion in liquidity to fund its growth [1]. Currently, AST SpaceMobile has six satellites in orbit and plans to reach between 45 and 60 satellites by the end of 2026 [1].

The company's innovative approach involves creating large satellites that can connect smartphones directly to the internet without the need for wired connectivity, cellular towers, or a satellite terminal. This technology has the potential to invigorate growth at a massive pace, leading to billions of dollars in annual revenue [1]. AST SpaceMobile has already secured contracts with telecommunications providers such as AT&T and Verizon, and it aims to target 3 billion existing smartphone and internet customers with its add-on service for remote internet capabilities [1].

Once operational, AST SpaceMobile expects to quickly turn on the revenue spigot. The company projects it will scale up revenue to $50 million-$75 million in the second half of 2025 in the United States alone, with plans to expand to the United Kingdom, Canada, and Japan in 2026 [1]. Additionally, the company has contracts with the United States government, specifically military divisions, which could contribute to its revenue growth [1].

However, AST SpaceMobile's valuation is currently high, with a market cap of $16 billion compared to zero dollars in revenue [1]. Even if the company meets its revenue projections, the stock is expected to trade at a price-to-earnings ratio (P/E) of 32, which is still expensive compared to the average stock [1]. Furthermore, recent delays in satellite launches, such as the one announced by the Indian Space Research Organization (ISRO), could lead to additional cash burn and require the company to raise more funds [1].

In conclusion, while AST SpaceMobile has the potential to disrupt the satellite internet market and generate significant revenue, its high valuation and potential risks make it a high-risk investment. Investors should carefully consider these factors before making a decision to invest in the company.

References:
[1] https://finance.yahoo.com/news/buying-ast-spacemobile-stock-once-101200224.html
[2] https://www.businesswire.com/news/home/20250106998015/en/AST-SpaceMobile-Announces-Agreement-for-Long-Term-Access-to-up-to-45-MHz-of-Premium-Lower-Mid-Band-Spectrum-in-the-United-States-for-Direct-to-Device-Satellite-Applications