Why AST SpaceMobile Stock Sank 28.8% In February

Shares of AST SpaceMobile (NASDAQ: ASTS) slipped 28.8% in February, according to data from S&P Global Market Intelligence. After appreciating by 300% over the last two years and hitting a peak of over $100 in early January, the stock tumbled when management decided to raise a large amount of capital. The satellite internet company is still up from under $3 in 2024 to over $90 as of this writing in March 2026, making it a massive winner for shareholders in recent years.

Here's why AST SpaceMobile stock was falling in February, and whether investors should act now and buy the dip with the stock below $100.

Raising funds, ambitious plans

AST SpaceMobile is building a satellite constellation to help directly connect the internet to devices such as smartphones without the need for a satellite terminal that is used for existing networks such as Starlink. It is partnering with telecommunications giants such as Verizon and Vodafone to sell its capabilities to customers, which it hopes will greatly accelerate its revenue-generating potential.

Building its satellite constellation requires major upfront investments. AST SpaceMobile has to manufacture its satellites and work with launch partners to get them to orbit. To take advantage of its rising share price, AST SpaceMobile just raised $1 billion in low-interest rate convertible notes due in 2036, which shored up its balance sheet.

The company needs the funds, with its free cash flow at negative $1.1 billion over the last twelve months. Management wants 45-60 satellites in orbit by the end of 2026 to bring its satellite internet services to North America, Western Europe, and Japan, but it will be an expensive journey to get there. Investors are also likely nervous about continued share dilution, with shares outstanding up 437% in the last five years alone.

Image source: Getty Images.

Should you buy the dip on AST SpaceMobile stock?

Revenue is already starting to pour in for AST SpaceMobile, reaching $54 million in Q4 2025. Once its satellite constellation is fully deployed this year, it should start generating revenue from its telecommunications partners and from the Department of Defense, with which it has a relationship.

Revenue could easily reach hundreds of millions within a short time frame, or even $1 billion. The problem is that AST SpaceMobile's stock price already reflects this future potential. With a market cap of $35.4 billion, AST SpaceMobile stock is far too expensive for a money-losing business that continues to dilute shareholders and generates little revenue today.

Avoid buying the dip on this expensive-looking stock right now.

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