MW This SpaceX rival's stock is skyrocketing as space's 'game of phones' heats up

By James Rogers

AST SpaceMobile plans to deploy 45 to 60 satellites into orbit by 2026 to support customers including the U.S. government

Starlink rival AST SpaceMobile reported second-quarter results after market close Monday.

Space-based broadband company AST SpaceMobile Inc. is cementing its status as a rival to Starlink, which is part of Elon Musk's SpaceX, in space's "game of phones," according to Cantor Fitzgerald.

AST SpaceMobile (ASTS) shares were skyrocketing following the company's second-quarter results late Monday. The stock was up more than 12% in premarket trading, putting it on pace for its biggest daily percentage gain in two months.

The rally comes after the stock dropped 12.6% amid a four-session losing streak through Monday and tumbled 23.5% as it declined in 10 of the past 12 sessions.

AST confirmed its "fully funded" plan to deploy 45 to 60 satellites into orbit by 2026 to support space-based cellular-broadband service coverage in key markets such as the U.S., Europe and Japan, as well as for the U.S. government. The company currently has six satellites in orbit - five fully operational and one test satellite - which are being used for both commercial and government applications.

AST's support from the U.S. Department of Defense is a key lever for the company, Cantor analyst Colin Canfield said Monday. In particular, the analyst pointed to "positive sentiment around AST as Starlink's (private) counterweight" in what he terms "space's 'game of phones.'"

The Starlink satellite-internet constellation has grown dramatically in recent years, boosted by SpaceX's impressive cadence of launches. As of Aug. 10, SpaceX had a total of 8,112 Starlink satellites in orbit, of which 8,093 were operational, according to data collated by astrophysicist Jonathan McDowell.

For its part, AST is tightening its links to the U.S. government. On Monday, the company said that it has demonstrated tactical nonterrestrial-network connectivity over standard mobile devices with participation from multiple branches of the U.S. armed forces.

During the quarter, the company said that it also signed two additional early stage contracts with the U.S. government as an end customer. That brings the company's total number of contracts with the U.S. government as an end customer to eight.

In February, for example, AST clinched a $43 million contract to support the U.S. military's Space Development Agency.

Canfield pointed to AST's "strategic advantages in digital payload technology" and its technology partnerships. These, he added, "may ultimately drive a government-driven story that significantly accelerates over the next few years." Cantor maintained its overweight rating and $30 price target for AST's stock.

Of nine analysts surveyed by FactSet, six are bullish and three are neutral on the stock.

Looking ahead, AST maintained its expectation of revenue between $50 million and $75 million in the second half of 2025, from government as well as commercial customers.

AST has been attracting plenty of positive attention in recent years, boosted by launch milestones and a raft of partnerships.

In March, AST and Vodafone Group PLC (VOD) (UK:VOD) signed an agreement to create SatCo, a European direct-to-device satellite service provider. SatCo has received expressions of interest from network operators in 21 of the 27 EU member states for a sovereign direct-to-device mobile broadband satellite service, AST said. Vodafone is an investor in AST.

The company also counts Verizon Communications Inc. $(VZ)$ and AT&T Inc. $(T)$ as partners. Last year AST announced a strategic partnership with a $100 million commitment from Verizon and also secured a strategic investment from AT&T, Alphabet Inc.'s Google $(GOOG)$ $(GOOGL)$ and Vodafone, which was an existing investor.

Earlier this month the company announced an agreement to acquire 60 megahertz of global S-Band spectrum priority rights, which it says will boost subscriber capacity and bring additional services to targeted markets around the world.

AST shares are up 117% in 2025 through Monday, outpacing the S&P 500 index's SPX gain of 8.4%.

-James Rogers

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August 12, 2025 09:22 ET (13:22 GMT)

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