Our Stock of the Week is AST Spacemobile, Inc. ASTS, headquartered in Midland, Texas. It designs and manufactures satellites and is creating the first space-based cellular broadband network. This network will provide 4G/5G connectivity directly to standard smartphones without requiring modifications. This will address gaps in coverage in remote areas, at sea, and in flight. ASTS’s BlueBird satellites essentially act as space-based cell towers and enable high-speed data services globally.
The company has partnered with major telecom providers such as AT&T, Verizon, and Vodafone. On Monday, March 3. ASTS and Vodafone announced an agreement to create SatCo, a jointly-owned European satellite service business that serves mobile network operators in all European markets. SatCo will provide 100% geographic coverage in every part of Europe to give consumers and businesses access to secure space-based cellular broadband connectivity.
ASTS competes against Elon Musk’s Starlink. ASTS has several advantages. It proves a direct connection to standard smartphones with no additional equipment. ASTS has signed agreements with over 35 mobile network operators globally, including AT&T and Verizon, in the U.S., allowing for easier integration and wider adoption. By acting as a wholesaler, ASTS can serve a large number of operators, potentially giving it an edge in scaling and adoption compared to Starlink’s direct-to-consumer model.
ASTS supports low-band frequencies (700 MHz for AT&T, 850 MHz for Verizon) that Starlink’s current antennas do not support, which helped win partnerships with major carriers. ASTS has reportedly made more progress in the regulatory process, obtaining approval to test full 5G broadband in Europe, Turkey, and the USA, while Starlink has only received approval for testing text messages. ASTS has achieved 20 Mbps download speeds and 5G calls in tests.
The company has earnings due on Monday after the market close and should have much to stay about its operational progress.
Technically, the stock is breaking a small downtrend and is positioned to test recent highs if it can gain momentum on the earnings call.
As always, we will not chase the open on Monday but will look to aggressively trade the stock into volatility.
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This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell, or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and buy or sell anytime for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees, and affiliates of Shark Investing, Inc. and/or principals, clients, employees, and affiliates of Hammerhead Financial Strategies, LLC, directly or indirectly, controlled investment and/or trading accounts containing no positions in ASTS. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.
