AST SpaceMobile stock pops after Bank of America upgrade
AST SpaceMobile's stock jumped nearly 8% to $97.60 on Friday, thanks to a Bank of America price target boost—even after a downgrade from Scotiabank earlier this week.
The company is building satellites so regular smartphones can connect directly to space-based broadband, but its tech is still early-stage.
Why does this matter?
AST's value has skyrocketed over 300% in the past year, hitting about $37 billion—even though it has no retail customers and only seven satellites launched since 2017.
Some analysts are excited about the potential for direct-to-phone internet, but others warn that slow adoption, high costs, and tough competition (like Starlink's thousands of satellites) could make profits a long wait—possibly not until 2027 or later.
What's driving the hype (and worry)?
Bank of America sees big promise in low Earth orbit satellite networks and pointed to growing interest in AST.
But Scotiabank calls the current valuation "irrational," pointing out that AST will need at least 50 satellites by 2027 for full service—and major spending means free cash flow might not arrive until 2028 or beyond.