The initial public offering (IPO) of Space Exploration Technologies, aka SpaceX, on June 12 was a major market event for 2026, drawing attention to the innovative company and others in the budding space economy. Investors’ enthusiasm spilled over into other space and satellite stocks, such as AST SpaceMobile (NASDAQ: ASTS), which rocketed to $133 per share in late May.
SpaceX’s public debut marked a peak for many space-related stocks, and AST SpaceMobile has since fallen 58%. With AST SpaceMobile now trading below $63 per share, investors may be wondering whether the sell-off is a buying opportunity. Let’s dive into the satellite company and its outlook to find out if it’s right for you.
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The bull case hinges on successful deployment of its BlueBird satellites
AST SpaceMobile operates satellites that provide cellular broadband from space directly to standard smartphones. The company partners with mobile network operators, including AT&T, Verizon Communications, Vodafone, and Alphabet‘s Google, and typically uses a 50/50 revenue-sharing model for carriers that offer add-on satellite coverage. The company aims to bring cellular coverage to half the Earth’s landmass that lacks it, and it has a potential user base of 3 billion subscriber connections across the globe.
To achieve continuous coverage across select high-priority markets, AST aims to deploy 45 to 60 satellites. The company was hoping to achieve this by year-end but faced a setback when its launch partner, Blue Origin’s New Glenn rocket, deployed its satellite into an orbit too low to operate in, rendering its BlueBird 7 unusable.
The company used SpaceX’s Falcon 9 to launch its BlueBird satellites 8 through 10 on June 17,…
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