AST SpaceMobile drops 9.3% as satellite stock retreats from highs

AST SpaceMobile Inc. fell 9.3% to $73.19 on June 22, the biggest single-day decline in three weeks for the satellite-communications company.

The move came as traders reassessed the stock's valuation against its early revenue trajectory. AST SpaceMobile generated $14.7 million in revenue in the first quarter of fiscal 2026, with management projecting full-year revenue of $150 million to $200 million. The company's market capitalization stands at about $31.3 billion, compared with SpaceX's valuation above $2.4 trillion.

AST SpaceMobile has launched about 10 BlueBird satellites and targets 45 in orbit during 2026. The company has partnerships with nearly 60 mobile network operators globally, covering more than 3 billion subscribers. It recently achieved a peak download speed of 98.9 megabits per second directly to standard smartphones, demonstrating the technical feasibility of its direct-to-device approach.

The decline highlights the execution risks facing satellite-direct-to-phone companies as they scale from prototype to commercial service. Rival Rocket Lab USA Inc., which joined the Nasdaq-100 on June 22, reported first-quarter revenue of $200.3 million and a backlog of about $2.2 billion. Rocket Lab's revenue rose 63.5% year over year, and the company signed 31 launch contracts during the quarter, including five for its upcoming Neutron rocket. Rocket Lab trades at about 91 times sales, a lower multiple than AST SpaceMobile given its larger revenue base.

AST SpaceMobile's next major batch of BlueBird satellites is in advanced production, with the company targeting assembly of six satellites per month. The company aims to have 45 satellites in orbit during 2026, a significant increase from the roughly 10 currently deployed. Each satellite adds coverage capacity and brings the network closer to commercial service.

For investors, the key question is whether AST SpaceMobile can justify its valuation as it transitions from development to commercial operations. With a market value of $31.3 billion against projected full-year revenue of as much as $200 million, the stock trades at more than 150 times sales, a multiple that leaves little room for execution missteps. The company's next catalyst will be the successful deployment and activation of its BlueBird satellite constellation, which will determine whether it can convert its telecom partnerships into recurring revenue.

This article is for informational purposes only and does not constitute investment advice.