Can Rising Satellite-Based Telecom Services Boost ASTS' Future Profit?

AST SpaceMobile, Inc. ASTS is emerging as a key player in the telecom industry with its satellite-based broadband network that connects directly to regular smartphones. The company is aligning its technology with the rising demand for broader wireless coverage, 5G connectivity and remote network access, enabling telecom operators to deliver reliable mobile services in underserved regions.AST SpaceMobile works with major telecom companies to expand wireless coverage through satellite connectivity, helping telecom providers improve service quality, reduce coverage gaps, and strengthen customer retention without making large investments in ground infrastructure. The company is also expected to benefit from the recent collaborations with AT&T, Verizon and T-Mobile US, which highlight the telecom industry’s growing focus on satellite-based mobile connectivity. The company’s low Earth orbit satellite network supports growing demand for global mobile connectivity as data usage, 5G adoption and Internet of Things (IoT) applications continue to expand. Its technology can also support emergency communication, disaster recovery and maritime services, creating additional growth opportunities in the evolving telecom market.With growing investments in digital infrastructure and next-generation communication technologies, AST SpaceMobile is well-positioned to expand its presence in the evolving wireless communication market. Its strong industry partnerships and innovative space-based network solutions are expected to support future business expansion.How Are Competitors Advancing in the Telecom Sector?AST SpaceMobile faces competition from Globalstar, Inc. GSAT and Viasat, Inc. VSAT. Globalstar is expanding its satellite communication services to support growing demand for mobile connectivity and IoT applications. The company is improving its satellite network infrastructure and focusing on next-generation satellite technology. Globalstar is benefiting from the growing adoption of satellite connectivity solutions in the telecom Industry.Viasat is strengthening its position in the telecom business through satellite-based Internet and communication services. The company is investing in advanced satellite technology to improve global network coverage and capacity. Viasat is also expanding direct-to-device connectivity solutions to support rising demand for wireless communication.ASTS’ Price Performance, Valuation and EstimatesAST SpaceMobile shares have skyrocketed 269.7% over the past year compared with the industry’s growth of 55.1%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, AST SpaceMobile trades at a forward price-to-sales ratio of 86.96, well above the industry average of 5.31.Image Source: Zacks Investment ResearchEarnings estimates for 2026 have decreased 47% to a loss of $1.47 per share over the past 60 days, while the same for 2027 has decreased to a loss of 38 cents per share.Image Source: Zacks Investment ResearchAST SpaceMobile currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks