The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Many space-oriented stocks went public by merging with special purpose acquisition companies (SPACs) over the past few years. However, most of those stocks crumbled as rising interest rates drove investors toward more conservative sectors.
AST SpaceMobile (ASTS -4.03%) stock fell 3.2% through 10:10 a.m. ET Tuesday on some disconcerting news out of the Securities and Exchange Commission (SEC).
AST SpaceMobile's (ASTS 7.77%) stock took a big bounce after the company reported fourth-quarter results last week. At one point, shares of the satellite communications start-up were up 32% from their pre-earnings price, and even after Monday's steep price decline, they're still higher than they were before the report came out.
AST SpaceMobile (ASTS -0.11%) wants to connect the world. The company plans to be the leader in using satellite technology to bring broadband directly to cellphone users across the globe.
Despite broad market volatility, momentum remains a powerful indicator of future price trends. Over the past month, a few standout stocks have climbed at least 20%, catching the attention of investors looking for sustained upside.
With a downtrend in estimate revisions, ASTS appears to be a risky investment option at the moment.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
The vast majority of technical indications point towards strength for the stock, despite some minor mixed signals in the indicators. The company is on strong financial footing as it has a healthy cash position. The growth story also seems highly intact as the company reported new developments. The valuation may provide opportunity as the P/B ratio has contracted while the growth story looks increasingly strong.
I can see the long-term potential of AST SpaceMobile, but its cash burn is simply too high for my Inflection Investing strategy. The company burned through $300 million in free cash flow last year, with no clear path to breakeven anytime soon. While early revenues may start flowing in 2025, the lack of visibility makes it too risky for my portfolio.
Satellite designer AST SpaceMobile Inc (NASDAQ:ASTS) announced better-than-expected fourth-quarter earnings and revenue after Tuesday's close.
After posting big gains in yesterday's trading, AST SpaceMobile (ASTS 15.07%) stock is surging again Wednesday. The space-based telecommunications company's share price was up 14.8% as of 1:30 p.m.