AST SpaceMobile (ASTS) Stock Rises as AT&T, Verizon and T-Mobile Form Satellite Joint Venture

TLDR

• AT&T, Verizon, and T-Mobile are forming a joint venture to use satellite networks to eliminate U.S. coverage dead zones.
• AST SpaceMobile stock rose around 2.1% on the news, having earlier climbed close to 5%.
• AST already has deals with AT&T and Verizon and sees the JV as validation of its satellite direct-to-device model.
• The company needs 45–60 satellites to launch commercial service but currently has just six in orbit, and a Blue Origin launch failure in April set it back.
• AST missed Q1 2026 estimates badly — EPS came in at -$0.66 vs. the expected -$0.21 — but reiterated its $1 billion revenue target for 2027.

AT&T, Verizon, and T-Mobile — three companies that usually spend their days trying to destroy each other — announced Thursday they are forming a joint venture to wipe out cellular dead zones across the U.S. using satellite-based wireless networks. The three carriers plan to pool their spectrum resources to boost capacity and help satellite operators reach more customers.

The deal still needs a definitive agreement, and each company can continue its own connectivity work independently.

For AST SpaceMobile, the news landed well. ASTS stock was up 2.1% in early Thursday trading, after jumping close to 5% shortly after the announcement.

AST SpaceMobile, Inc., ASTS

The timing matters. AST already has deals with both AT&T and Verizon to deliver service directly to consumer devices — no special hardware needed. The new joint venture effectively validates what AST has been building toward: 5G-quality voice, data, and video coverage delivered from low Earth orbit.

The Race to Get Satellites in Orbit

There’s one big catch. AST only has six satellites in orbit right now, and it needs between 45 and 60 operational to offer commercial service in northern latitudes. The company is aiming to hit that target by the end of 2025.

That timeline took a hit in April when Blue Origin botched a launch mission meant to put an AST satellite into orbit. The carriers made clear in their statement they expect to work with multiple satellite providers — so AST can’t afford to fall too far behind.

The competitive pressure is real. SpaceX is promising a Starlink Mobile service by end of 2027, and Amazon is moving into the space following its acquisition of Globalstar, targeting a 2028 entry.

William Blair, which maintained a Market Perform rating on ASTS this week, noted that the stock has been volatile — falling 10% after hours in one recent session, only to reverse a 10% gain from the prior day. Despite that choppiness, ASTS is up roughly 204% over the past year and carries a market cap of around $32 billion.

Q1 Results Miss the Mark

AST’s first-quarter 2026 results, reported recently, came in well below expectations. The company posted an EPS of -$0.66 against a forecasted -$0.21. Revenue was $14.7 million, compared to analyst estimates of $37.48 million.

Despite the miss, AST reiterated its revenue guidance and pointed to progress in satellite technology, which helped steady investor confidence after the report.

The company also reaffirmed its $1 billion revenue target for 2027 on its earnings call. William Blair said it believes positive developments have occurred related to the New Glenn rocket anomaly investigation, though AST is limited in what it can disclose publicly.

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