AST SpaceMobile announced a $1 billion convertible notes offering and, in the same filing, said its launch campaign targets approximately 45 BlueBird satellites in early 2027, pushing out a key timeline. The article says the raise highlights that the company is still loss-making and will need substantial further spending before profitability, while SpaceX's Starlink is already profitable. It argues AST's partners, including Verizon and AT&T, are likely to be patient with delays since they also face competition from SpaceX. Cited risks include costly satellite production, reliance on third-party rockets and the possibility of launch failures. The article concludes the stock is only appropriate for aggressive growth investors, and that the delay is unlikely to undermine the long-term investment thesis.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
AST SpaceMobileSpaceXconvertible bondstelecommunications
Open a keyword to see other news on the same topic.
Related news
- Why Shares of AST SpaceMobile Slipped 27% Last Month
AST SpaceMobile shares fell 26.8% last month, per S&P Global Market Intelligence, and are down 71% from their highs after a further 27% drop in October. The article attributes the slide to slow satellite deployment, since at least 45 satellites are needed in orbit for US service versus 13 today, and to a bottleneck of satellites waiting for launches on SpaceX rockets, plus competition from Starlink's planned direct-to-smartphone service. Last quarter, the company posted negative free cash flow of $719 million while generating little revenue. With a $15 billion market cap, the stock trades at a steep premium to trailing revenue; even at $1 billion in revenue, the price-to-sales ratio would be 15. The author judges the stock overvalued and says it is not a good time to buy in.
- AST SpaceMobile Hit a 52-Week Low Days After SpaceX Spent $8 Billion on Spectrum. That's Not a Coincidence.
AST SpaceMobile hit a 52-week low of $39.02 on Oct. 20, 12 days after SpaceX agreed to buy Grain Management's nationwide 800 MHz low-band spectrum for $8 billion. The article says the deal could let Starlink, combined with over 10,000 active satellites, become a standalone wireless carrier, threatening AT&T and Verizon's plans with AST. However, the author argues the sell-off is an overreaction, since carriers may need to invest more in AST's satellites to compete, and SpaceX's move may push more carriers toward AST. AST has launched 13 BlueBird satellites and needs at least 45 for stable service, and the decline is attributed mainly to a valuation of 74 times this year's sales. Analysts expect revenue to rise from $168 million in 2026 to $1.73 billion in 2028.
- AST SpaceMobile Rises 4% as Europe’s Largest Carriers Explore Joint Satellite Spectrum Bid; SpaceX and Rocket Lab Edge Higher
AST SpaceMobile rose 4% to $42.24 in early trading after its carrier partners, described as Europe's four largest, signed a letter of intent to explore a potential joint bid for mobile satellite services spectrum. The letter names no financial terms and adds no signed revenue yet, while SpaceX and Rocket Lab rose more modestly. The company has 13 BlueBird satellites in orbit, targets about 45 by early 2027, and says its carrier partners cover more than 3 billion subscribers. Its Q2 2026 revenue of $31.52 million missed expectations, and the loss of $0.77 per share also fell short, though management reaffirmed revenue guidance of $150 million to $200 million for the year. Pro forma liquidity tops $3.7 billion and the signed backlog is roughly $1.3 billion.
- AST SpaceMobile’s stock is feeling the heat from SpaceX’s wireless plans
An analyst warns that AST’s commercial rollout could be delayed by satellite-launch challenges and SpaceX’s growing ambitions.
- 2 Space Stocks Down More Than 50% That Could Be the Best Buys of Q4
AST SpaceMobile (ASTS) is down roughly 69% from its May 2026 peak, while Rocket Lab (RKLB) has fallen more than 60% from its record high, as investors reassessed timelines and competition. Bank of America expects AST to begin initial intermittent cellular coverage in the U.S., Canada, Japan, the U.K. and Saudi Arabia before the end of 2026, backed by partnerships with more than 60 mobile operators serving over 3 billion subscribers. AST launched 13 satellites in August but still faces execution, competition and funding risks. Rocket Lab reported record Q2 2026 revenue of about $234 million, up 62% year over year, and a record backlog of $2.4 billion, up 137%, while it agreed to acquire Iridium Communications and delayed its Neutron rocket debut to 2027. Analysts' target prices imply potential upside of 10% to 157%, and the stock trades at about 41 times sales.
- AST SpaceMobile Is the New Battleground Stock
Related markets
Latest news
- S&P 500 is looking over the edge of a technical cliff — what happens if it falls off?
A J.P. Morgan strategist says that falling below 7,500 would lead to a dramatic increase in selling pressure and volatility. That could end in a full-blown correction.
- Alphabet's Free Cash Flow Just Turned Negative. Should Investors Sell the Stock Now?
Alphabet reported Q3 revenue up 25% to $127.6 billion, but free cash flow was negative $9.1 billion, the second straight quarter, as $51.4 billion in capital expenditures exceeded $42.3 billion in operating cash flow. The company also built inventory for its custom TPU systems and paid $5.2 billion tied to a 2018 European Commission fine. Trailing 12-month free cash flow remained positive at $19.7 billion, and cash and marketable securities totaled $265.1 billion, including $90.4 billion in equity investments. Operating income rose 30% to $40.6 billion, Google Cloud revenue reached $30.7 billion with a $561 billion backlog, and Search revenue grew 12% to $63.4 billion. The shares fell sharply after the report, and the article highlights monitoring Cloud margins, Search ad growth and free cash flow.
- JPMorganChase Files Form 10-Q for the Quarter Ended September 30, 2026
JPMorgan Chase & Co. (NYSE: JPM) has filed its Form 10-Q with the SEC for the quarter ended September 30, 2026. As of that date, the firm had $5.1 trillion in assets and $372 billion in stockholders' equity. The report is available on the SEC website and the firm's Investor Relations site.
- AMD stock jumps 7% on earnings as data center revenue nearly doubles
AMD reported third-quarter revenue up 45% to $13.38 billion, beating the $13.09 billion LSEG consensus, while adjusted EPS came in at $2.09 versus $1.95 expected. Data center sales nearly doubled and now account for 64% of total revenue, up from 47% a year earlier, driven by demand for server CPUs that power agentic AI apps. The stock rose 7% in extended trading after recent losses. Its PC and gaming segment fell 8% to $3.7 billion, with gaming revenue down 40%. For the fourth quarter, AMD expects about $17 billion in revenue, above the $16.2 billion analyst average.
- Nvidia vs. SK Hynix: Comparing Quarterly Revenue Trajectories
The article compares quarterly revenue trends for Nvidia (NVDA) and SK Hynix (SKHY) over the last 8 quarters. Nvidia's sales have grown rapidly, driven by GPUs for AI data centers, and it forecast sales of about $108 billion in its fiscal third quarter; it also agreed to supply additional GPUs to AWS. SK Hynix's revenue surged this year on soaring demand and high average selling prices for high-bandwidth memory (HBM) used in AI processors, though the company is ramping HBM output, which could eventually push prices down. SK Hynix also began shipping its latest HBM products, showcased tenth-generation flash memory, and faces a suspended IPO for its U.S. unit Solidigm and an ongoing antitrust class action. Its shares have fallen from a 52-week high of $199.87, and Wall Street has been cautious about the stock.
- CrowdStrike Launches AI Agent 'Kill Switch,' Plans to Acquire Fiddler AI
CrowdStrike launched an AI Kill Switch that lets administrators block unauthorized AI agents through a gateway, with direct endpoint termination planned later. The company also agreed to acquire Fiddler AI, reportedly valued at roughly $400 million, to monitor agent behavior and explain automated decisions. The tools aim to give enterprises more control over AI agents that can access corporate systems and act without constant human supervision. The Fiddler deal is expected to close in the fourth quarter of fiscal 2027, which ends January 31, 2027, and will be paid mainly in cash.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.