Shares of satellite designer and manufacturer AST SpaceMobile (ASTS -0.62%) rocketed 250% higher in 2024, according to data provided by S&P Global Market Intelligence. The space company made significant progress establishing its spaced-based cellular broadband network during the year and inked deals with major telecommunications giants, which sent shares soaring.
A banner year for AST SpaceMobile
AST SpaceMobile aims to transform global communication by delivering reliable cellular broadband through its low-Earth orbit satellites. The company looks to work with telecommunications companies to bridge connectivity gaps in regions that traditional infrastructure can’t reach.
This connectivity is vital for everyday communication and will form the backbone of advanced technologies, including autonomous vehicles and IoT devices.
In May, AST partnered with telecom giants AT&T and Verizon Communications to expand its space-based network. On May 15, the satellite company fortified its long-standing relationship with AT&T by entering a new commercial agreement that extends their collaboration through 2030. AST SpaceMobile will provide a space-based broadband network directly to everyday cellphones as part of this agreement.
In a similar agreement, Verizon pledged a sizable $100 million investment in the space communications company. The deal includes $65 million in commercial prepayments, with $45 million contingent on specific conditions and $35 million in convertible notes, underscoring Verizon’s and AST SpaceMobile’s shared mission.
In September, AST successfully launched five new satellites, named BlueBirds, into low Earth orbit. BlueBird communication antennas extend to 693 square feet when fully extended, making them the largest ever deployed by a commercial spacecraft. Abel Avellan, CEO of AST SpaceMobile, said this achievement was a “momentous occasion” for the company.
Image source: Getty Images.
What’s next for AST SpaceMobile
AST SpaceMobile has ambitious plans to launch 17 more satellites in the first quarter of this year and 60 satellites over the next two years. In the long term, the company aims to build and launch a network of 155 satellites by 2030.
The satellite manufacturer has a significant upside as the industry expands. Analysts at Deutsche Bank forecast revenue could reach $50 million by next year, grow to $1.4 billion by 2027, and soar to $5.1 billion by 2030. Furthermore, they anticipate the company will become cash-flow positive by 2027.
While AST SpaceMobile is making strides, it will need to continue tapping markets to meet its financing needs as it expands its satellite network over the next several years. This makes it best suited for aggressive, long-term-focused investors willing to tolerate the volatility along the way.
