Short interest is a powerful market force that can not only cap gains but drive share prices lower, but not always. Sometimes, even the short sellers get things wrong.
Verizon (VZ) and AST SpaceMobile (ASTS) announced a commercial agreement for space-based cellular broadband across the continental US, boosting VZ's network coverage. I maintain a 'strong buy' rating on VZ, as this partnership marginally enhances its long-term growth prospects and competitive positioning. ASTS, despite operational milestones and partnerships, remains highly speculative due to heavy dilution, minimal revenue, and high valuation; I rate it a 'sell'.
Shares of AST SpaceMobile surged 12% to $83.43 in premarket trading on Wednesday after the company announced a partnership with Verizon Communications to offer space-based broadband connectivity to the carrier's customers starting in 2026.
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.