Down 33% From Its 52-Week High, Is It Time to Buy the Dip on AST SpaceMobile?

The SpaceX initial public offering (IPO) has cast a spotlight on the growing space industry. One company in the news lately is AST SpaceMobile (NASDAQ: ASTS), which is launching a slew of satellites to build a telecommunications network entirely from space.

At the start of the year, AST SpaceMobile set a lofty goal of launching up to 45 satellites into orbit to provide continuous coverage in select markets. However, those plans have faced unexpected hurdles in recent months, pushing the timeline to next year. As a result, the stock has taken a hit and is now 34% below its 52-week high.

Here's why investors may want to consider buying the dip in the space stock.

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Two Blue Origin mishaps disrupt AST SpaceMobile's 2026 launch goal

AST SpaceMobile is building a network of satellites that can provide direct-to-cellular broadband to unmodified smartphones, essentially acting as cellphone towers in space. The company has secured major deals over the past couple of years with the likes of Alphabet, AT&T, Verizon, and Vodafone to provide reliable coverage and eliminate dead zones in hard-to-reach areas.

To provide continuous coverage to its early select markets, AST SpaceMobile management said it needs between 45 and 60 of its BlueBird satellites in orbit to accomplish this. So far, the company has launched six of its satellites into space and had ambitious plans to launch several satellites a month through the end of this year to achieve its goal.

However, its orbital deployment schedule hit a roadblock in April, when its BlueBird 7 satellite, carried by Blue Origin's New Glenn rocket, was deployed into an orbit too low to be operational. As a result, the company de-orbited the satellite, which was fully insured. In May, Blue Origin faced another setback when its New Glenn rocket exploded on the launch pad in Cape Canaveral, destroying the rocket and, more importantly, destroying Blue Origin's only launch pad.

With New Glenn sidelined, AST SpaceMobile must rely on other launch companies, most notably SpaceX and its Falcon 9 launch vehicle, to get its satellites into orbit. The company is targeting mid-June for the launch of its BlueBird 8, 9, and 10 satellites. With that said, the company has been forced to delay its plans for continuous service into the first half of 2027.

The recent dip is an opportunity for investors bullish on the growing space economy

On a positive note, AST SpaceMobile has scaled its production capacity to manufacture six BlueBird satellites per month and will continue to build and launch them as quickly as possible. Long term, the company aims to have over 100 satellites in service to achieve full global coverage and support additional markets.

AST SpaceMobile is still in the early stages of building its satellite constellation, and the good news is that it has firm deals with several major mobile network operators and the production capacity to achieve its longer-term goals. That said, the stock remains vulnerable to setbacks and is best left for growth-focused investors who are bullish on the long-term outlook for the growing space economy.

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.