Key Points
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AST SpaceMobile stock has been a huge winner in 2025, with most of its valuation gains occurring in June’s trading.
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Expansion moves and excitement surrounding the space industry helped power massive gains last month.
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AST’s business looks poised to scale rapidly in this year’s second half, but some strong growth is already priced into the stock.
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10 stocks we like better than AST SpaceMobile ›
AST SpaceMobile (NASDAQ: ASTS) stock rocketed higher in the first half of this year’s trading thanks to some strong business results and signs that the space industry will continue heating up. The company’s share price surged 121.5% across the stretch, according to data from S&P Global Market Intelligence. Meanwhile, the S&P 500 index’s level rose 5.5% over the period.
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AST SpaceMobile’s massive rally took off last month
AST SpaceMobile saw valuation swings that amounted to relatively little cumulative movement across the first five months of the year, but the stock really took off in June’s trading. The company published a press release on June 13, announcing that it had reached terms to secure new licensing for L-Band wireless spectrum that would extend for more than 80 years. The deal will enable AST to gain access to wireless frequency channels it can use to distribute its space-based cellular broadband services.
AST then announced on June 18 that it was expanding its partnership with Vodafone and would bring its satellite-based cellular broadband services to markets in India that are underserved in terms of internet availability. Interest in defense-related growth opportunities also powered gains for the stock last month.
In addition to business-specific developments and a general uptick in bullish momentum for the broader space industry, AST’s valuation got a big boost due to expectations that the Federal Reserve will implement more than one interest rate cut this year. Some investors are betting that the central bank’s Federal Open Mark Committee (FOMC) will reduce the benchmark interest rate at its meeting at the end of July.
If so, it would likely be a bullish development for AST and other speculative stocks with heavily growth-dependent valuations — although it’s looking less likely following recent inflation data.
What’s next for AST SpaceMobile?
AST stock has continued to rocket higher early in the second half of 2025. The company’s share price has risen roughly 13% in the month, thanks to bullish coverage from analysts and excitement surrounding the space industry.
AST expects its sales to scale rapidly in the second half of this year and sees a sales opportunity between $50 million and $75 million during the period. As of this writing, the satellite-communications specialist has a market capitalization of roughly $13.1 billion and is valued at approximately 213 times the average sales forecast for this year.
AST SpaceMobile closed out its last reported quarter with $874.5 million in cash and short-term equivalents and looks to be in a good position to rapidly scale its business in the near term. With the potential to rapidly expand its service offerings in the consumer market and win new contracts from U.S. defense agencies and allied nations, the business seemingly has a very long runway for expansion.
On the other hand, investors should keep in mind that AST’s performance trajectory remains speculative — and the stock’s growth-dependent valuation could open the door for high volatility.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool recommends Vodafone Group Public. The Motley Fool has a disclosure policy.
