The space company has recently progressed towards potential profitability.
AST SpaceMobile (ASTS), witnessed a stock increase of 5.8% by 12:05 p.m. ET on Monday, continuing a climb that began on Friday afternoon. This rise is attributed to a significant development announced by the company.
Shortly before noon on Friday, AST SpaceMobile revealed that all five of its BlueBird direct-to-cell communications satellites had successfully deployed their solar panels.
Implications for AST SpaceMobile
In September, AST SpaceMobile launched these satellites with the promise that, once operational, they would offer "approximately 100% nationwide coverage from space with over 5,600 coverage cells in the United States." It was predicted then that announcements of milestones like these might serve as catalysts to gradually increase the stock price, which appears to be occurring as reports of the successful solar panel deployment become public.
The company stated that this achievement places it "ahead of schedule" in launching its direct-to-cell service and that it is "now preparing for commercial and US government operations." Future announcements regarding the first successful call via the satellites and the beta rollout of services are anticipated to further influence the stock price.
Assessment of AST SpaceMobile Stock
In the short term, the outlook appears positive. However, the company’s long-term prospects remain uncertain. AST SpaceMobile has partnered with major telecom industry players such as AT&T, Verizon, and Vodafone. Yet, it remains to be seen how lucrative these partnerships will prove or if the company can generate enough revenue—and at sufficient profitability levels—to justify its $3 billion investment in communications satellites.
With a market capitalization exceeding $5 billion and currently no revenues or profits, AST SpaceMobile persists as a speculative stock.