Why This Satellite Data Stock Keeps Losing Altitude
Key Points
AST is still expanding its constellation of LEO satellites.
But its stock isn’t cheap, and SpaceX is stealing its thunder.
- 10 stocks we like better than AST SpaceMobile ›
AST SpaceMobile's (NASDAQ: ASTS) stock closed at its all-time high of $133.09 per share on May 28, 2026. But as of this writing, it trades at about $66. Let's see why this satellite stock plummeted -- and if it's an attractive long-term investment at these levels.
Why did AST SpaceMobile's stock hit a record high?
AST SpaceMobile produces low-earth orbit (LEO) satellites for internet communications. Unlike SpaceX's (NASDAQ: SPCX) Starlink, which provides its own first-party satellite internet services, AST helps telecom giants -- including AT&T and Verizon -- expand their wireless networks to remote areas that terrestrial towers can't reach. AST's BlueBird (BB) satellites are also much larger than Starlink's satellites.
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Image source: Getty Images.
AST has only launched seven satellites so far, but it plans to expand that constellation to 45-60 satellites by the end of 2026 and up to 248 satellites over the long term. If it achieves that goal, analysts expect its revenue to surge from $71 million in 2025 to $1.88 billion in 2028. They also expect it to turn profitable in 2027 and 2028. That rosy outlook drove a stampede of bulls to AST, and SpaceX's IPO -- which sparked fresh interest in space stocks -- amplified its gains.
Why did AST's stock pull back?
But at its peak, AST's market cap hit $39.7 billion -- or 21 times its projected revenue for 2028. That high valuation became unsustainable as Inflation, fears of interest rate hikes, and other macro headwinds drove investors toward more conservative investments.
SpaceX's record-setting IPO on June 12, which valued the company at $1.77 trillion, also pulled investors away from smaller space stocks like AST. Its revenue growth in the first quarter of 2026 also broadly missed analysts' expectations, and the explosion of Blue Origin's New Glenn rocket on May 28 weighed down the entire space sector with fresh regulatory concerns -- even though AST mainly relies on SpaceX's Falcon 9 rockets for its deployments.
Even after AST's recent pullback, it doesn't look cheap at 11 times its 2028 sales. But it still seems like a better value than SpaceX -- which trades at 21 times its 2028 sales.
Is it the right time to buy AST SpaceMobile?
AST could have plenty of room to run as the LEO market expands. However, it could stay in the penalty box as long as interest rates stay high, investors remain wary of tighter regulations, and SpaceX keeps sucking the oxygen out of the entire space sector. That's probably why its insiders sold 31 times as many shares as they bought over the past three months -- and why it might be smart to avoid the stock until it's trading at more sustainable valuations.
Should you buy stock in AST SpaceMobile right now?
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Leo Sun has positions in Verizon Communications. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
