Key Highlights
- ASTS shares advanced 4.6% to reach $90.94 during Thursday’s session, with trading volume hitting 17.9 million shares — 19% higher than typical daily activity
- The rally was partially fueled by market excitement surrounding Amazon’s agreement to acquire Globalstar, lifting sentiment across the LEO satellite industry
- On Mad Money, Jim Cramer endorsed ASTS as a worthwhile holding, describing it as having “unique property,” despite acknowledging its speculative nature
- Management projects FY26 sales between $150M–$200M, maintains a contracted backlog worth $1.2B, and reports approximately $3.9B in available liquidity
- Wall Street remains divided — consensus price target stands at $77.10, with ratings split between 2 Buys, 6 Holds, and 3 Sells
Shares of AST SpaceMobile rallied 4.6% during Thursday’s trading session, finishing at $90.94 compared to the previous session’s close of $86.91. Trading activity reached 17.9 million shares — approximately 19% higher than the stock’s typical daily turnover — indicating substantial buyer interest driving the advance.
The shares touched an intraday peak of $91.10. The stock’s 50-day moving average currently rests at $89.27, while the 200-day average stands at $82.79. The company’s market capitalization has reached approximately $34.74 billion.
What sparked the rally? News that Amazon plans to acquire Globalstar created waves throughout the satellite communications industry. Market participants seemed to reassess ASTS based on the premise that an expanding LEO connectivity ecosystem could benefit several companies, not exclusively Amazon.
During his Mad Money broadcast, Jim Cramer provided additional momentum, responding to a viewer’s question: “I like it very much. After what I saw happen with Globalstar and Amazon — let’s own this one.” Cramer had earlier characterized ASTS as speculative yet suitable for inclusion within a balanced portfolio.
The firm manages the BlueBird satellite constellation, enabling direct connectivity to conventional smartphones without requiring specialized equipment — representing the central investment premise.
Financial Picture Shows Growth, But Losses Continue
During its latest quarterly report (released March 2), ASTS delivered revenue of $54.31 million, significantly exceeding Wall Street’s expectation of $39.53 million. This represents a staggering 2,731% year-over-year increase.
Earnings per share registered at -$0.26, falling short of the anticipated -$0.18 consensus. The business continues operating at a loss, reflected in a P/E ratio of -68.89 and negative return on equity of 23.02%.
Management anticipates FY25 revenue of $70.9 million. Looking ahead, FY26 guidance spans $150M–$200M, with projections suggesting a trajectory toward $1 billion by FY27.
Additionally, the company maintains a $1.2 billion contracted backlog, secured a $175 million advance payment from STC Group, and holds roughly $3.9 billion in liquidity — factors that analysts believe mitigate immediate dilution concerns.
Wall Street Ratings and Insider Transactions
Analyst opinion remains fragmented. The consensus price objective sits at $77.10 — beneath current trading levels. UBS elevated its target from $43 to $85 while maintaining a “neutral” stance. B. Riley reduced its forecast from $105 to $95, also assigning a “neutral” rating. Zacks improved its rating from “strong sell” to “hold.” Weiss Ratings maintained a “sell (d-)” designation, and Wall Street Zen recently downgraded to “strong sell.”
Regarding insider transactions, CTO Huiwen Yao divested 40,000 shares on March 23 at an average price of $88.88, decreasing their stake by 89.39%. This represents a significant transaction deserving attention.
Institutional stakeholders control 60.95% of outstanding shares, with multiple smaller investment firms establishing new positions during the third and fourth quarters of the previous year.
On the challenge front, FCC representatives have highlighted an emerging “three-way race” within the satellite sector, and reports suggest potential delays affecting BlueBird deployment timelines. Amazon’s market entry introduces a well-capitalized rival into direct competition.
As of Thursday’s close, ASTS exhibits a beta of 2.81, maintains a debt-to-equity ratio of 0.92, and reports a quick ratio of 16.27.
