New York, Jan 15, 2026, 11:56 EST
- AST SpaceMobile shares climbed roughly 4% amid mixed investor sentiment on the satellite-to-phone venture.
- Zacks pointed to falling earnings forecasts and a high valuation; yet another Zacks comparison still ranked ASTS ahead of Verizon.
- Commentators highlighted a 2026 launch target and carrier partnerships, yet cautioned that profits could remain elusive for years.
Shares of AST SpaceMobile climbed roughly 4% Thursday, hovering near $99 amid sharply divided opinions on the satellite-to-smartphone firm’s valuation and execution risks.
The tug-of-war is crucial now as “direct-to-device” connectivity—satellites linking regular smartphones without cell towers—shifts from demos to early commercial rollout. This shift has pushed what was once a niche telecom gamble into the spotlight for retail investors and telecom executives alike.
AST plans to roll out 45 to 60 satellites in 2026, a milestone its supporters believe could transform coverage in rural and remote regions. Skeptics, however, warn this ambitious timeline intensifies pressure on funding, production, and regulatory approvals, leaving scant margin for setbacks.
A Zacks “Bear of the Day” alert this week highlighted cuts in earnings per share (EPS) following a reported third-quarter shortfall, calling the stock’s recent surge overvalued. The note described the shares as trading at a “stratospheric” price-to-sales ratio—market value divided by projected revenue—and suggested some investors might prefer to take profits instead of chasing the rally. (Sharewise)
A separate Zacks report offered a more optimistic take, noting AST’s recent launch of the BlueBird 6 satellite, which it described as a record-setting commercial communications array in low Earth orbit. The analysis also emphasized AST’s spectrum acquisitions—including S-band and L-band rights—that might reduce the company’s dependence on carrier partners down the line. (Finviz)
The Zacks comparison also put Verizon under the microscope, highlighting its much bigger size and more stable footing in the U.S. telecom space, where growth is limited by a saturated wireless market. It flagged Verizon’s hefty debt and fierce rivalry with AT&T and T-Mobile, even as the company pushes into areas like vehicle-to-everything (V2X) communications — technology enabling cars to exchange data with other vehicles and road infrastructure — plus industrial 5G initiatives.
Motley Fool’s take tilted bullish, highlighting that AST’s network doesn’t need special phones and already counts more than 50 mobile service providers and telecom tech companies as partners—AT&T, American Tower, and Alphabet included. It pointed to third-party research predicting robust growth in space-based mobile broadband and noted analysts foresee a sharp revenue surge in the coming years. (The Motley Fool)
Even the bull case carries warnings. Motley Fool highlighted that analysts don’t foresee profits until 2028 and flagged a consensus price target sitting below the stock’s recent trading price. It’s a clear sign some remain skeptical about backing the current valuation.
The risk is straightforward and harsh: delays in launch timing, rising satellite and component costs, or a need for more capital on less favorable terms could quickly squeeze the stock’s multiple. Zacks highlighted concerns over materials pricing and geopolitical factors, cautioning that large revenue contracts will likely be necessary to support the current share price.
ASTS is currently caught in a tricky spot—part telecom, part space hardware, part spectrum play. The coming quarters will likely depend more on launch schedules, coverage results, and new commercial contracts than on broad market predictions.
