New York, February 3, 2026, 15:01 EST — Regular session
Shares of AST SpaceMobile climbed roughly 6.3% to $111.11 by 2:46 p.m. EST Tuesday, after fluctuating between $105.82 and $116.60 earlier, with about 11.5 million shares changing hands. The stock followed a broader rally in U.S. space companies sparked by Elon Musk’s announcement that SpaceX will merge with xAI, valuing the combined entity at $1.25 trillion. Rocket Lab, Planet Labs, and Intuitive Machines also saw gains. Musk predicted that within two to three years, the most cost-effective way to power AI will be from space. Mark Boggett of Seraphim Space called the deal “the strongest validation yet that space will be the backbone of the next wave of AI.” Reuters
The jump is significant because the AI trade is spilling over into everything connected to satellites and launch gear, even if the connection is more sentiment than solid data. AST has turned into a high-beta stand-in for the “space-to-phone” concept, often tracking the sector whenever headlines drop.
“Direct-to-device” refers to satellite connections that operate on regular smartphones—no extra hardware, no special antennas needed. Investors are betting on execution: will AST launch enough capacity into orbit, and can it maintain a service stable enough for carriers and governments to commit funding?
On January 22, AST announced its BlueBird 7 satellite is set to launch in late February aboard Blue Origin’s New Glenn rocket from Launch Complex 36 at Cape Canaveral Space Force Station. “This launch advances our mission to bring space-based cellular broadband connectivity to everyday smartphones,” said Scott Wisniewski, the company’s president. He noted the timing could still change depending on readiness and weather conditions. Business Wire
The company is steering investor attention toward its defense work to broaden its narrative beyond just consumer markets. In mid-January, it secured a prime contract award under the U.S. Missile Defense Agency’s SHIELD program through an indefinite-delivery/indefinite-quantity (IDIQ) contract, which lets the agency issue task orders over time. Chris Ivory, the company’s chief commercial officer and head of government business, called the selection “a major validation.” Business Wire
Tuesday’s action felt more like a sector-wide twitch than a real change in AST’s underlying story. That’s a double-edged sword. When sentiment reverses, these shares usually retreat just as quickly.
Bears keep circling the same issues: valuation, funding requirements, and the timeline from a handful of satellites to a functional network. On January 7, Scotiabank downgraded the stock, slashing its target to $45.60. The bank labeled the valuation at the time “irrational levels,” noting the company had yet to land a retail customer, according to a report on the note. Investing.com
AST warned its launch schedule could shift and has set an ambitious pace for 2026. Any delays, launch mishaps, or weaker-than-expected initial demand would put pressure on a stock already priced for perfection.
