This $39 Billion Company Made Just $54.3 Million in the Last Year, but People Keep Buying It. Should You?
Key Points
AST SpaceMobile trades at a steep 382x price-to-sales ratio, betting heavily on a future that hasn't yet materialized.
Major carrier partnerships give AST SpaceMobile a path to potentially massive recurring revenue, but it's far from guaranteed.
With only a handful of satellites currently in orbit, significant execution risk remains before the company can deliver on its ambitious promise.
- 10 stocks we like better than AST SpaceMobile ›
AST SpaceMobile (NASDAQ: ASTS) is one of the most aggressively valued stocks on the market. The company trades at a $39 billion market cap on just $54.3 million in trailing-12-month (TTM) revenue, a price-to-sales (P/S) ratio of over 382.
Why are investors paying such a premium for AST stock?
If the company can deliver on its promise, the payoff could be enormous. AST is building a satellite constellation designed to deliver cellular broadband directly to standard smartphones. Its partners include AT&T, Verizon, Vodafone, and now TELUS -- carriers collectively serving billions of subscribers. If commercial service activates at scale, recurring revenue could reach tens of billions annually. It's also recently landed a defense contract, adding another potential revenue stream.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Image source: Getty Images.
Is AST SpaceMobile worth the risk?
But that's a lot of "ifs." AST has a handful of satellites in orbit and plans to launch dozens more by year end, but it still has a long way to go, and there is significant execution risk.
At this valuation, you're paying a premium for a future that's far from guaranteed. Still, there's enough of an opportunity here for investors with a very high risk tolerance.
Should you buy stock in AST SpaceMobile right now?
Before you buy stock in AST SpaceMobile, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AST SpaceMobile wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $534,008!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,090,073!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 190% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of March 9, 2026.
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool recommends TELUS, Verizon Communications, and Vodafone Group Public. The Motley Fool has a disclosure policy.
Recommended Articles
