close
close
Here is the reason why AST Spacemobile share is a purchase before March 3rd

The producer of Leo satellites still looks like a promising long-term investment.

Ast spacemobile (ARTS 17.58%)))A producer of Low Earth Orbit (Leo) satellite for mobile phone networks has recorded more than 840%in the past 12 months. This rally was fueled by the introduction of its first commercial satellites and new contracts.

Since the market is floating near its all -time highs, many investors could be careful if it pursues the high -flying stocks of AST. Nevertheless, I think that, for five simple reasons, it is still advisable to nibble asts volatile stocks before the fourth quarter of the fourth quarter on March 3 on March 3.

Glass shuffle filled with pennies on a rocket.

Image source: Getty Images.

1. The advantage of an early movers in a growing market

The Leo satellites of AUTS offer cellular 2G, 4G and 5G connections to areas that cannot be covered by terrestrial tower networks. It primarily provides its data about low and medium -sized band spectra that work at lower speeds, but have more extensive coverage areas than the high -band spectra used by its closest competitor, the Starlink of SpaceX.

The Starlink satellites also connect directly to a central terminal (such as a satellite shell), which then radiates the signal to mobile phones. Instead of connecting to central terminals, AST connects its satellites directly with the mobile phone networks of its telecommunications partners. This optimized approach could help AST, which is still much smaller than Starlink to expand faster.

2. It is already locked up in several telecommunications giants

AT & T And Verizon CommunicationsProvide the two 5G connections with a low band that worked with AST in 2024 to accommodate T-mobilePartnership with Starlink. Vodafone Last December also signed a new 10-year contract with AST to expand its satellite cover in Europe, Africa, India and the Middle East.

3. More commercial satellites starts

AST launched its first five Bluebird satellites Block 1 Bluebird (BB1) last September. This marked his first step to achieve consistent income. The Federal Communications Commission (FCC) gave it a temporary approval to test its BB1 satellites with the networks of AT&T and Verizon at the end of January.

Ast plans to start its first four Block 2 Bluebird (BB2) satellites that are 3.5 times larger in March than the BB1 ​​satellites and process 10 times more data. It is planned to finally start 17 BB2 satellites and extend its “constellation” to 243 Leo satellites in the long term, but the FCC is needed to approve this massive expansion. All positive updates for its upcoming BB2 start or other FCC permits during the upcoming report in the fourth quarter could drive the shares of AST even higher.

4. His insiders are net buyers

ASt has increased its number of outstanding shares by 287% since it was brought into the stock exchange on April 7, 2021 with a SPAC (Special Purpose Acquisition Company) (SPAC). After a few wild fluctuations, the share price has still risen by 174% day since its first trade. AST will probably continue to water its existing investors with more secondary offers in order to increase more cash and stock compensation costs in order to subsidize salaries.

However, the insiders from AST still bought 118 -more shares than in the past 12 months. This warming insider feeling suggests that ARTS shares could still rise much higher if it scales its business and brings even more satellites to the market.

5. It is still reasonably valued

AST has a company value of 5.9 billion US dollars, which for a company that is expected to expand only 5 million US in 2024.

It is still 19 times the estimate of 2026, but his business could grow faster in the next few decades. So if you believe that AST Spacemobile can maintain its early Mover advantage in this booming niche market, it may be a great idea to record a few stocks before publishing the next winning report.

Leo Sun has positions in Verizon Communications. The Motley Fool recommends T-Mobile US, Verizon Communications and Vodafone Group Public. The Motley Fool has a disclosure policy.

Leave a Reply

Your email address will not be published. Required fields are marked *