Shares of AST SpaceMobile (ASTS) blasted off, trading at an all-time high after the provider of space-based cellphone service announced it had struck a deal with Verizon Communications (VZ) to offer direct-to-customer broadband service across the continental U.S.
AST SpaceMobile's successful direct-to-cell test with Bell Canada showcases its push to deliver seamless connectivity across Canada's remotest regions.
AST SpaceMobile's stock was soaring after a deal with Verizon gave investors what they've been betting on and more.
AST SpaceMobile Inc (NASDAQ:ASTS) shares surged more than 8% after it announced a definitive commercial agreement with Verizon Communications Inc (NYSE:VZ, ETR:BAC) to provide space-based cellular broadband services across the continental United States, with service expected to begin in 2026. The partnership will allow Verizon customers to access direct-to-cellular satellite connectivity when needed, extending the reach of Verizon's terrestrial mobile network into remote and hard-to-reach areas.
The image featured for this article is © Courtesy of AST SpaceMobile
The agreement will provide space-based cellular broadband across the U.S.
AST SpaceMobile announced a deal with Verizon to provide service from space beginning next year.
AST SpaceMobile, Inc. (ASTS) closed the most recent trading day at $67.76, moving +2.42% from the previous trading session.
AST SpaceMobile faces soaring costs from inflation, competition and satellite expansion even as its stock surges and earnings estimates rise.
The market is soaring as investors push the artificial intelligence (AI) growth theme into overdrive. Not all stocks have been invited to the party.
Despite fears of SpaceX taking the lead position in the D2D market following its spectrum acquisition from EchoStar, I believe AST still has a 2-year market advantage. SpaceX requires next-generation satellites that will start launching in 2 years to use the spectrum it acquired and new phone chipsets to support these frequencies. AST's access to spectrum in L-band and S-band will allow it to offer better D2D broadband services to phones equipped with next-generation chipsets.
AST SpaceMobile surged 91% in six months on BlueBird satellite launches and carrier deals, but high costs and widening losses cloud the outlook.