Why AST SpaceMobile Stock Dropped 30% Last Month

Shares of AST SpaceMobile (NASDAQ: ASTS) sank 30% in November, according to data from S&P Global Market Intelligence. A disruptive mover in the satellite internet space, AST SpaceMobile is aiming to build a constellation of satellites that will beam high-speed internet directly to smartphones.

It has a promising technology, which investors are excited about. However, it currently generates minimal revenue vs. its market capitalization, making it a risky and volatile stock to own. Here's why shares of AST SpaceMobile fell last month.

Satellite innovation, heavy upfront losses

SpaceX and its satellite internet service Starlink have changed the game, as the service can provide fast internet anywhere globally. The only problem for customers is the need to lug around a satellite terminal to get the service to work.

AST SpaceMobile believes it can solve the terminal issue, building a satellite internet constellation that can connect smartphones directly to the internet. It is doing so with gigantic satellite arrays. A new version set to launch this month is 2,400 square feet, for reference. By the end of 2026, AST SpaceMobile expects to have 45-60 satellites launched, with internet connectivity ready to go for its telecommunications partners like Verizon and Vodafone.

Today, the company has just five satellites in orbit, meaning there is much progress left to manufacture these satellites and launch them. With that being the case, it is not surprising that AST SpaceMobile stock gave back a lot of its recent gains -- the stock price has gone from under $5 in 2024 to over $70 today -- in a month where the broad stock market took a tumble.

Image source: Getty Images.

Time to buy AST SpaceMobile stock?

In just a few short trading days in December, AST SpaceMobile has recovered a lot of its November losses. The stock is getting close to hitting its all-time high of $80 as of this writing on December 6th, 2025.

Does that mean it is time to hop back in and buy AST SpaceMobile stock? When looking at this business, it has a lot of future promise, as long as the satellite constellation and underlying technology work. With large contracts signed with smartphone carriers like Verizon, the company may be able to quickly gain millions of customers looking for direct-to-device internet. Sprinkle in some contracts with the U.S. government, and this could be a business that quickly grows to $1 billion in annual revenue.

Today, the stock has a market cap of $27 billion, which is still expensive if the company reaches these revenue milestones. It has diluted shareholders by raising money to cover its upfront spending through common stock offerings, and when combined with a rising share price, the market cap has gone into the stratosphere.

Avoid buying AST SpaceMobile stock today. The stock looks overvalued even if its business plan is a total success.

Brett Schafer has no position in any of the stocks mentioned. The Motley Fool recommends Verizon Communications and Vodafone Group Public. The Motley Fool has a disclosure policy.