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Bear of the Day: AST SpaceMobile (ASTS)
ASTSAST SpaceMobile(ASTS) ZACKS·2025-04-21 10:20

Core Viewpoint - AST SpaceMobile is positioning itself as a leader in the satellite communications industry by providing cellular broadband connectivity directly to standard smartphones from space, aiming to create the world's first global cellular broadband network in space [1][2]. Company Overview - AST SpaceMobile is valued at 7.4billionandfocusesonspecializedcommunicationssatellites[1].−Thecompanyhasasignificantpatentportfoliowithover3,450patentsandpatent−pendingclaimssupportingitstechnology[3].TechnologyandService−TheSpaceMobileServicewillutilizeaconstellationofhigh−powered,largephased−arraysatellitesinlowEarthorbit(LEO)toprovideconnectivityinareaslackingterrestrialnetworkcoverage[2].−Theinitialdeploymentoffivecommercialsatellites,namedBlueBirds,isdesignedtoconnectdirectlytostandardsmartphonesatbroadbandspeeds,eliminatingtheneedforspecialequipment[3][4].MarketCompetition−ASTSpaceMobilecompeteswithestablishedplayerslikeSpaceX′sStarlinkbuthasshownimpressivegrowthsinceitsfirstsatellitelaunchsixyearsagoanditspubliclistingin2021[4].FinancialPerformance−Projectedsalesforthecurrentyearareexpectedtoincreasebyover1,2007.4 billion and focuses on specialized communications satellites [1]. - The company has a significant patent portfolio with over 3,450 patents and patent-pending claims supporting its technology [3]. Technology and Service - The SpaceMobile Service will utilize a constellation of high-powered, large phased-array satellites in low Earth orbit (LEO) to provide connectivity in areas lacking terrestrial network coverage [2]. - The initial deployment of five commercial satellites, named BlueBirds, is designed to connect directly to standard smartphones at broadband speeds, eliminating the need for special equipment [3][4]. Market Competition - AST SpaceMobile competes with established players like SpaceX's Starlink but has shown impressive growth since its first satellite launch six years ago and its public listing in 2021 [4]. Financial Performance - Projected sales for the current year are expected to increase by over 1,200%, from 4.4 million to 59million,withfurthergrowthanticipatednextyeartoover59 million, with further growth anticipated next year to over 275 million, representing a 370% increase [5]. - The stock is currently trading at a price-to-sales ratio of 125X for this year and is expected to drop to 27X next year [5]. Profit Outlook - Despite a high price-to-sales valuation, AST SpaceMobile's stock has received a Zacks 5 Rank due to a disappointing Q4 report, where revenue fell short of expectations [6]. - The company reported a net loss of 35.9millionforthequarter,anincreasefromalossof35.9 million for the quarter, an increase from a loss of 31.9 million in the same quarter the previous year [7]. - Analysts have adjusted the 2025 EPS consensus down by 12% following the report, indicating a projected loss of $0.74 [8].