Should You Buy AST SpaceMobile Stock Below $63?

The initial public offering (IPO) of Space Exploration Technologies, aka SpaceX, on June 12 was a major market event for 2026, drawing attention to the innovative company and others in the budding space economy. Investors' enthusiasm spilled over into other space and satellite stocks, such as AST SpaceMobile (NASDAQ: ASTS), which rocketed to $133 per share in late May.

SpaceX's public debut marked a peak for many space-related stocks, and AST SpaceMobile has since fallen 58%. With AST SpaceMobile now trading below $63 per share, investors may be wondering whether the sell-off is a buying opportunity. Let's dive into the satellite company and its outlook to find out if it's right for you.

Image source: The Motley Fool.

The bull case hinges on successful deployment of its BlueBird satellites

AST SpaceMobile operates satellites that provide cellular broadband from space directly to standard smartphones. The company partners with mobile network operators, including AT&T, Verizon Communications, Vodafone, and Alphabet's Google, and typically uses a 50/50 revenue-sharing model for carriers that offer add-on satellite coverage. The company aims to bring cellular coverage to half the Earth's landmass that lacks it, and it has a potential user base of 3 billion subscriber connections across the globe.

To achieve continuous coverage across select high-priority markets, AST aims to deploy 45 to 60 satellites. The company was hoping to achieve this by year-end but faced a setback when its launch partner, Blue Origin's New Glenn rocket, deployed its satellite into an orbit too low to operate in, rendering its BlueBird 7 unusable.

The company used SpaceX's Falcon 9 to launch its BlueBird satellites 8 through 10 on June 17, and aims to launch satellites 11 through 13 in the first half of August. The successful Falcon 9 mission helps AST SpaceMobile continue establishing its satellite constellation, but the recent events reveal the risks around available launch services as it races to build out its satellite network.

Does the recent 58% dip in AST SpaceMobile make it a buy?

AST is guiding revenue for this year to be between $150 million and $200 million, with half of that backed by its existing backlog. Wall Street is forecasting a net loss of $1.55 per share, or about $463 million, as it deploys its satellites. In July, the company closed a $1 billion private offering of convertible senior notes at 1.625% due 2034. The move gives it $3.8 billion in capital to fund its ongoing orbital expansion.

Looking ahead, management reiterated a revenue expectation of $1 billion next year. For 2028, analysts project revenue to grow to $1.9 billion, with GAAP earnings per share turning positive, assuming the company expands to 90 satellites to provide global continuous coverage.

The recent dip in AST SpaceMobile highlights the risks of investing in the early-stage satellite stock as it establishes its satellite network and scales up its commercial operations. That said, the stock has declined significantly from its recent peak, making it more favorable on a risk-to-reward basis. For aggressive investors bullish on the space economy and AST's role in it, the recent dip presents an appealing opportunity to add some shares in the company.

Courtney Carlsen has positions in Alphabet. The Motley Fool has positions in and recommends AST SpaceMobile and Alphabet. The Motley Fool recommends Verizon Communications and Vodafone Group Public. The Motley Fool has a disclosure policy.