Why AST SpaceMobile Stock Rocketed 244% Higher In 2025

Shares of AST SpaceMobile (NASDAQ: ASTS) shot up 244% in 2025, according to data from S&P Global Market Intelligence, making it one of the top-performing stocks globally last year. An early stage business aiming to build an array of satellites that can directly beam internet to smartphones, the company is working to launch its satellite arrays and establish partnerships with telecommunications carriers such as Verizon.

AST SpaceMobile's stock was up 244% last year. But is it still a buy today?

Moving forward with satellite internet technology

Starlink was a revolutionary service, allowing customers to obtain high-speed satellite internet anywhere around the world. The only issue is the need to utilize an antenna/satellite dish to connect with the Starlink constellation, making the service less portable for customers.

AST SpaceMobile aims to improve on this service, eliminating the need for a satellite dish and bringing internet directly to smartphones by utilizing its ginormous satellites. The company has launched six satellites into orbit, and while testing the viability of its technology, it still needs to deploy 40-50 total satellites into orbit to provide a working service in the United States, Europe, and Japan. This is not going to be cheap -- the company burned close to $1 billion in cash flow over the last twelve months -- but it gives them a line of sight to starting seeing a revenue inflection.

To attract customers, AST SpaceMobile is collaborating with wireless carriers, including Verizon, which will compensate them for offering AST SpaceMobile connectivity as a bundled service to their customers. This should enable AST SpaceMobile to quickly scale up its revenue once its satellite constellation is operational.

Image source: Getty Images.

Should you buy AST SpaceMobile stock?

AST SpaceMobile is an exciting stock. In an ultra-bullish scenario, the company can keep building up its direct-to-device internet capabilities and perhaps have tens of millions of customers around the world generating billions in annual revenue. This would likely mean the stock price is higher a decade from now.

The problem is that AST SpaceMobile's stock already trades at a $24 billion market cap, while generating close to zero revenue. Even if it can scale up to $1 billion in revenue, or even $5 billion, it will still be trading at a premium valuation, especially considering the high costs associated with building and launching its satellites.

Avoid buying AST SpaceMobile after its massive stock appreciation last year.

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