TLDR
- AST SpaceMobile stock reached an all-time high of $91.45, up 262.46% over the past year
- Verizon signed a definitive commercial agreement for direct-to-cellular satellite service starting in 2026
- Scotiabank downgraded the stock from Sector Perform to Sector Underperform with a $42.90 price target
- The company filed to sell up to $800 million in Class A common stock through an at-the-market offering
- AST SpaceMobile successfully completed space-based direct-to-cell tests with Canadian carrier Bell
AST SpaceMobile shares jumped 6.51% as the stock reached an all-time high of $91.45. The company now carries a market capitalization of $32.9 billion.
The rally comes after AST SpaceMobile signed a definitive commercial agreement with Verizon. The partnership will bring direct-to-cellular satellite service to Verizon customers starting in 2026.
Under the deal, Verizon users will connect their standard smartphones directly to satellites. The service will enhance connectivity across the continental United States.
The stock has surged 262.46% over the past year. Year-to-date performance stands at 279.07%.
Average trading volume sits at 12.04 million shares. Technical indicators currently flash a buy signal.
The company maintains a current ratio of 8.23. AST SpaceMobile holds more cash than debt on its balance sheet.
Analyst Downgrade Creates Mixed Signals
Scotiabank recently downgraded the stock from Sector Perform to Sector Underperform. The firm set a price target of $42.90, suggesting a potential 40% downside from current levels.
The downgrade stems from valuation concerns. Scotiabank’s move has increased demand for downside protection among investors.
A delay in shipping the company’s first BB2 satellite to India contributed to the downgrade. The satellite shipment is now expected on October 12.
AST SpaceMobile filed to sell up to $800 million in Class A common stock through an at-the-market offering program. Several investment banks will help facilitate the sale.
Bell Test Results Show Promise
The company completed successful space-based direct-to-cell tests with Bell, a Canadian telecommunications provider. The tests demonstrated 4G voice calls, video calls, and broadband data connectivity.
AST SpaceMobile used its BlueBird satellites for the testing. The trials also showcased SMS messaging and emergency alerts.
The Bell partnership marks another step in proving the technology’s capabilities. The tests showed the system works with standard consumer smartphones.
The company continues to expand its technological capabilities. Its satellite-based mobile communications approach has attracted investor interest.
Technical indicators suggest the stock is currently in overbought territory. The buy signal persists despite the elevated levels.
The Verizon deal represents a major commercial milestone. Service launch is scheduled for 2026.
The company’s balance sheet shows financial strength with more cash than debt. The current ratio of 8.23 indicates strong liquidity.
The at-the-market offering could raise up to $800 million. This capital will support continued operations and satellite deployment.
The stock’s recent performance reflects growing investor confidence. The Verizon agreement serves as validation of the company’s business model.
