AST SpaceMobile Stock Jumps 53.5% on Direct-to-Device Satellite Internet Innovation Hopes

Shares of AST SpaceMobile (NASDAQ: ASTS) surged 53.5% in May, according to data from S&P Global Market Intelligence. The space economy stock is positioned to directly compete with Starlink in the satellite internet market, gaining momentum ahead of the anticipated SpaceX IPO. The stock has risen 389% over the past year.

Key Points

• AST SpaceMobile aims to be the first company to offer direct-to-device satellite internet, potentially undercutting Starlink’s current dominance.

• The company expects to complete its full constellation of satellites by the end of 2026.

• Shares appear expensive following significant gains over the past year.

A Leader in Direct-to-Device Internet

Starlink currently dominates satellite internet services, generating $11.4 billion in revenue in 2025. However, users must purchase terminals to receive its signal. AST SpaceMobile claims it will be the first satellite constellation capable of delivering high-speed internet directly to mobile devices without requiring additional hardware. This innovation relies on ultra-large arrays and advanced satellite technologies.

The company remains in the deployment phase with minimal revenue but has raised $3 billion in capital, providing sufficient funds to complete its satellite constellation under existing launch contracts. Management projects revenue of $150 million to $200 million in 2026, driven by U.S. government contracts and global mobile carrier partnerships.

Image source: Getty Images.

Investment Considerations

AST SpaceMobile has strategic partnerships with the three major U.S. mobile carriers, positioning it to expand coverage where cellular towers are limited. With billions of potential global customers, the company could rapidly scale to significant revenue levels.

However, the stock’s valuation reflects high expectations. With a $46 billion market cap, the shares may be difficult to justify at current levels. Recent technical challenges, including satellite misalignments after launch, highlight execution risks. Investors might consider waiting for clearer operational progress before committing capital.

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