AST SpaceMobile Stock Down 50% From Highs, Raises $1 Billion; Analyst Still Not Buying

AST SpaceMobile (NASDAQ: ASTS) stock has fallen nearly 60% from its 2026 highs, currently trading around $55, after the company announced a $1 billion convertible bond offering to fund its satellite internet constellation. The article, written by Motley Fool analyst Brett Schafer, explains why he remains bearish despite the company's technological progress. AST SpaceMobile aims to be the first to commercialize direct-to-smartphone satellite internet, competing with SpaceX's Starlink. However, the company faces significant challenges: massive cash burn (negative $1.37 billion free cash flow over 12 months), manufacturing and launch risks (a recent Blue Origin mission misplaced a satellite, and Blue Origin's launchpad exploded), and intense competition from SpaceX. The analyst argues these operational and financial risks outweigh the potential opportunity, advising against buying the stock even at the reduced price.

First published Aug 4, 01:57 PM UTCUpdated Jul 20, 02:05 PM UTC1 reports · 1 sources

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AST SpaceMobile Stock Down 50% From Highs, Raises $1 Billion; Analyst Still Not Buying

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AST SpaceMobile Stock Down 50% From Highs, Raises $1 Billion; Analyst Still Not BuyingYahoo FinanceWesternJul 20, 02:05 PM UTC

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