For those with New Year's resolutions to scoop up shares of AST SpaceMobile (NASDAQ: ASTS), 2024 has been a delight. AST SpaceMobile is developing a space-based broadband network, and it has seen its stock skyrocket 540% since the start of the year.
But have investors who have held on to the stock since it first debuted on public markets fared as well? Let's take a look at what has driven investor sentiment for this upstart space company, and how the stock has performed.
This space stock's growth has been out of this world
Founded in 2017, AST SpaceMobile began trading on April 7, 2021, shortly after the completion of its SPAC merger. During its first day on the market, AST SpaceMobile opened at $11.63 per share and climbed as high as $12.47 before settling at $11.81 to end its first trading session. For investors who bought shares of AST SpaceMobile in April 2021 and held on for the next three years, the stock's performance was largely a disappointment, as it had plunged more than 81% by April 2024.
However, those with the resolve to continue holding beyond the three-year anniversary have largely been rewarded. Shares started to sizzle in May, when the company inked a definitive commercial agreement with AT&T "to provide their first space-based broadband network direct to everyday cellphones," and they've continued to stay hot through the summer. Consequently, those who invested $10,000 at the open have seen their positions rise to about $33,200 in value as of Aug. 19.
Don't be surprised if shares come back to earth
Shares of AST SpaceMobile have soared beyond the stratosphere over the past three years, largely based on the expectation that the company will execute its growth plans flawlessly. But there are critical factors for potential investors to consider, such as the company burning through large amounts of cash while failing to generate substantial revenue.
At this point, those with AST SpaceMobile on their radars are better off watching from the sidelines, waiting for the stock to pull back before starting a position.
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Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
