Thu Jan 15 16:40:00 UTC 2026: ### AST SpaceMobile’s Future Under Scrutiny as Losses Deepen and Valuation Soars

The Story:

AST SpaceMobile (ASTS), a company aiming to provide global cellular broadband via satellite, faces increasing financial scrutiny despite promising revenue growth. A recent report from Zacks Investment Research highlights significant earnings estimate revisions downward for 2025 and 2026 following a substantial Q3 EPS miss in November. While revenue projections show a dramatic ramp-up from $4 million to nearly $55 million in 2025 and a further 376% increase to $261 million in 2026, the stock’s strong rally to its October highs near $100 has resulted in a price-to-sales ratio of 138, based on a market cap of $36 billion.

Key Points:

  • AST SpaceMobile aims to provide broadband directly to standard smartphones using satellites.
  • The company partners with over 50 mobile network operators, reaching nearly 3 billion subscribers.
  • Earnings estimates for 2025 have been revised downward by 18%, from a loss of 90 cents to -$1.06.
  • Earnings estimates for 2026 have been revised downward from a loss of 63 cents to -$0.74.
  • The stock currently trades at a price-to-sales ratio of 138.
  • Zacks Investment Research suggests investors consider taking profits and waiting for the stock to potentially trough.

Key Takeaways:

  • AST SpaceMobile faces financial challenges despite its innovative approach to global cellular broadband.
  • The company’s high valuation, driven by optimistic revenue projections, may not be sustainable in the short term.
  • Investors should exercise caution and carefully consider the risks associated with ASTS’s earnings picture and high price-to-sales ratio.
  • The financial performance of ASTS is under close watch, and further developments will likely influence its stock price.
  • Profitability is a key factor to consider and the company will likely need to increase sales significantly to justify its current market capitalization.

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