Yesterday, in a piece on AST SpaceMobile (ASTS), preceding its Q4 earnings, we posed three key questions: Can it grow revenue? Can it secure funding without dilution? And can it stay ahead of the competition? Now that the results are in, let’s break them down.
Three Answers to Three Questions
First is revenue growth. ASTS pulled in $4.42 million, blowing past the $3.22 million estimate. While it’s still early in monetizing its satellite network, it shows real progress in turning its tech into revenue. Investors wanted proof, and they got it.
On funding, ASTS strengthened its balance sheet without heavy dilution. The company raised $460 million in convertible notes, bringing pro-forma cash to nearly $1 billion, with $567.5 million on hand as of year-end 2024. It also secured a long-term commercial deal with Vodafone (VOD), covering 20+ countries through 2034, and landed a $43 million U.S. Space Development Agency contract. That’s a solid mix of cash flow sources without overly diluting shareholders.
Competitively, ASTS is holding the lead in direct-to-device satellite connectivity. Its first five BlueBird satellites are fully operational, and it successfully pulled off two-way video calls with AT&T (T), Verizon (VZ), and Vodafone using standard smartphones during the earnings call. In addition, production is ramping up for 40 more satellites, with launch capacity secured for 60 through 2026.
ASTS answered the big questions convincingly, and the stock climbed a modest 1% after the call but went down over 5% afterward. However, with its high volatility and rising short interest, the real challenge is scaling up and proving its model can sustain long-term growth.
Is ASTS a Good Stock to Buy?
After yesterday’s earnings, AST SpaceMobile continues to hold a Strong Buy Consensus based on three analysts’ ratings. The average price target for ASTS stock is $28.40, suggesting a 10.85% upside potential.
