Key Points
AST SpaceMobile stock saw big gains this week after the company announced $550 million in new funding had been secured.
The company will use the cash to purchase wireless spectrum licenses that will extend more than 80 years.
AST has seen massive valuation gains this year, but its business looks poised to accelerate rapidly.
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AST SpaceMobile (NASDAQ: ASTS) stock recorded big gains in this past week’s trading despite no major news for the company. In a stretch of trading that saw the S&P 500 index rise 0.6%, the satellite specialist’s share price rose 27.2%.
AST’s valuation surged last week after the company announced some major financing news. The company’s stock also continued to benefit from bullish momentum surrounding the broader space industry, and it’s now up 175% across 2025’s trading.
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AST stock surged on $550 million financing to support big spectrum deal
A week ago Sunday, AST announced that one of its subsidiaries had secured $550 million in funding to support its deal to license wireless spectrum from Ligado Networks. Through the licensing deal, AST SpaceMobile will receive access to 40 MHz of L-Band MSS spectrum in the United States and Canada. The licensing deal extends for more than 80 years and also potentially grants AST access to an addition 5 MHz of category spectrum in the U.S. market. Investors appear to be happy with AST’s financing moves to support the deal and bid the company’s stock higher in each of last week’s trading days.
What’s next for AST SpaceMobile?
On the heels of recent gains, AST SpaceMobile now has a market capitalization of roughly $14.4 billion and is valued at approximately 37 times this year’s expected sales and 234 times expected earnings. While the company has a highly growth-dependent valuation, it also appears to be in the early stages of a major new growth phase.
The company’s satellite-based cellular broadband network has the distinction of already being compatible with existing mobile devices without the need for add-ons or modifications, and the service could wind up having a disruptive impact in the consumer telecommunications industry. Outside the consumer market, investors are also excited about the company’s potential to win deals with U.S. defense agencies and related contractors.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
