AST SpaceMobile (ASTS) Is Up 31.2% After Verizon Partnership for Direct-to-Cell Satellite Service – Has The Bull Case Changed?

• Verizon announced a definitive commercial agreement with AST SpaceMobile to provide direct-to-cellular, space-based broadband service for Verizon customers across the U.S. starting in 2026, enabling everyday smartphones to connect via satellite without special equipment.
• This collaboration positions AST SpaceMobile as a major player in the space-to-cellular market by unlocking coverage for remote and underserved locations through integration with Verizon’s expansive terrestrial network.
• We'll assess how the partnership with Verizon strengthens AST SpaceMobile's investment narrative by advancing its technology toward nationwide connectivity.

The end of cancer? These 28 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

What Is AST SpaceMobile's Investment Narrative?

Investing in AST SpaceMobile means betting on the mainstream adoption of space-based mobile connectivity, a vision powered by partnerships with industry giants like Verizon and Vodafone. The newly announced, definitive agreement with Verizon has become a clear short-term catalyst, as seen in the sharp share price surge. This deal elevates AST SpaceMobile's visibility and could improve confidence in its technology, especially after recent setbacks with satellite launches and fierce competition from providers like Starlink. It also supports commercial viability by integrating space-based service with Verizon’s robust network. However, risks remain prominent: ASTS continues to post significant losses, relies on ongoing capital raises, and faces execution pressures to deliver a fully operational satellite constellation in time for commercial rollout. The Verizon news meaningfully shifts the balance for near-term drivers, but core challenges, such as launch delays and capital requirements, still require attention.

However, the potential for launch delays could weigh heavily on future expectations, investors should not overlook this risk.

AST SpaceMobile's shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

Exploring Other Perspectives

Sixty-seven fair value estimates from the Simply Wall St Community spread from just US$0.07 to nearly US$200 per share, showcasing a divide among private investors. With new carrier partnerships now a catalyst, opinions on execution risks and financial sustainability will likely remain front-of-mind for many. Explore these alternative viewpoints for added perspective.

Explore 67 other fair value estimates on AST SpaceMobile - why the stock might be worth less than half the current price!

Build Your Own AST SpaceMobile Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your AST SpaceMobile research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free AST SpaceMobile research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate AST SpaceMobile's overall financial health at a glance.

Seeking Other Investments?

Our daily scans reveal stocks with breakout potential. Don't miss this chance:

• Uncover the next big thing with financially sound penny stocks that balance risk and reward.
• Find companies with promising cash flow potential yet trading below their fair value.
• AI is about to change healthcare. These 32 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com