AST SpaceMobile Stock Zooms Higher Amid Satellite Constellation Launch and Government Validation

AST SpaceMobile shares rose 14.29% this week, reaching a market cap of over $40 billion, after winning validation from the US government to bid on contracts for the Golden Dome security system. The company is building a satellite constellation to beam internet directly to smartphones, competing with Starlink. AST SpaceMobile generates little revenue, posting $15 million in sales last quarter, and burns through close to $1 billion in free cash flow. The stock is overvalued, with a sky-high price-to-sales ratio, and it's unclear how large the business will need to be to get a return on upfront satellite development.