Rick_Jo
Almost out of nowhere, AST SpaceMobile, Inc. (NASDAQ:ASTS) has more than doubled in the last month. The satellite broadband company is still in the pre-revenue phase testing services of new satellites launched recently. My investment
AST SpaceMobile: Unsustainable Move
Summary
- AST SpaceMobile stock surge is driven by hype and speculative news, not by tangible business progress or partnerships.
- ASTS remains pre-revenue, faces fierce competition from Starlink and Amazon, and has only five satellites in orbit.
- AST SpaceMobile's stock valuation is unsustainable, requiring aggressive user growth and revenue assumptions that are unlikely given limited real-world demand for satellite broadband.
- Investors should use the current rally to exit ASTS stock, as risks and execution challenges far outweigh the upside.
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Stone Fox Capital is an RIA from Oklahoma. Mark Holder is a CPA with degrees in Accounting and Finance. He is also Series 65 licensed and has 30 years of investing experience, including 15 years as a portfolio manager.
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