AST SpaceMobile (ASTS) Stock Jumps 21% on Rakuten Deal and Satellite Milestone

TLDR

• AST SpaceMobile stock surged 21.44% Monday to close at $86.77 after reports of a possible $1 billion joint venture with Japan’s Rakuten Group.
• BlueBird satellites 8, 9, and 10 are now confirmed fully operational in orbit, with BlueBirds 11, 12, and 13 set to launch in early August.
• The company is producing satellites through BlueBird 37 as it works toward 45-60 in orbit by the end of 2026.
• Rocket Lab’s $8 billion bid for Iridium Communications added sector-wide momentum to satellite stocks, including AST.
• AST’s market cap sits near $27.7 billion, with the stock still down roughly 35% from its all-time high set a month ago.

AST SpaceMobile (ASTS) stock climbed 21.44% on Monday, closing at $86.77 a share. The move came after reports surfaced that the company is in talks with Japan’s Rakuten Group on a possible $1 billion joint venture.

AST SpaceMobile, Inc., ASTS

That deal would see the two companies build and operate satellites for a direct-to-mobile service in Japan, similar to Starlink. Coverage there is reportedly targeted for next year, according to a Nikkei report.

The rally followed confirmation that AST’s BlueBird satellites 8, 9, and 10 are now fully operational in orbit. Those three satellites mark the company’s eighth, ninth, and tenth commercial launches to date.

What’s Next for the BlueBird Constellation

AST says BlueBirds 11, 12, and 13 are now in final preparations for shipment to Cape Canaveral. The company expects to launch them in the first half of August.

Manufacturing is already underway on satellites through BlueBird 37. CEO Scott Wisniewski said the production pace reflects the strength of the company’s manufacturing capabilities as it works toward commercial service.

AST is targeting 45 to 60 satellites in orbit by the end of 2026. Long term, the company plans to expand that constellation to as many as 248 satellites.

Each BlueBird satellite spans roughly 2,400 square feet, making them the largest communications arrays ever deployed in low Earth orbit. That’s more than double the size of SpaceX’s largest Starlink satellites.

Unlike Starlink, which sells its own internet service directly to consumers, AST partners with telecom carriers like AT&T and Verizon. Its satellites extend those companies’ existing wireless networks into rural areas where cell towers don’t reach.

AST also processes cellular data on the ground through its own Radio Access Network software. Starlink processes data on the satellites themselves, meaning AST can upgrade to new wireless standards without swapping out hardware in space.

Sector Momentum and the Numbers

The Rakuten news wasn’t the only thing lifting satellite stocks this week. Rocket Lab’s planned $8 billion takeover of Iridium Communications has reignited investor interest across the sector.

That deal helped ease some of the pressure AST had been under following a recent stock slump. Despite Monday’s pop, ASTS remains about 35% below the all-time high it hit a month ago.

Analysts expect AST’s revenue to grow from $71 million in 2025 to $1.88 billion by 2028. Adjusted EBITDA is projected to turn positive in 2027 and reach $1.39 billion by 2028.

With an enterprise value of $23.1 billion, the stock trades at 136 times this year’s sales. On 2028 projected sales, that multiple drops to roughly 13 times.

AST still burns through a lot of cash and remains unprofitable today. If satellite launches or revenue growth fall behind schedule, the company could face more funding needs and potential dilution down the road.

As of Monday’s close, AST’s market capitalization stood at $27.73 billion. The stock’s average trading volume sits at about 22.1 million shares, and its year-to-date performance is down 1.62%.

The post AST SpaceMobile (ASTS) Stock Jumps 21% on Rakuten Deal and Satellite Milestone appeared first on CoinCentral.