In mid-June 2025, AST SpaceMobile Inc. (NASDAQ: ASTS) has seen its stock price surge to its highest in nearly ten months, with analysts projecting nearly 19% upside potential. This remarkable five-day gain of over 38% has raised concerns among some investors about the sustainability of this rally, yet is likely seen as a part of a broader upward trend.
The recent spike in ASTS shares has been partly attributed to a well-publicized feud between former President Trump and Elon Musk, which seems to have sparked interest and speculation within the market. While not solely responsible for AST’s performance, this public drama has inadvertently cast doubt on Musk’s Starlink, the satellite internet service of SpaceX that dominates the market with two-thirds of the internet satellites in orbit.
Though AST has reported impressive growth—nearly 262% over the last year—it must navigate significant competition from Starlink, particularly as Musk’s relationship with Trump could signal a potential monopoly for their satellite services. Investors have expressed concern about this risk, especially considering the finite orbital capacity which limits the number of satellites that can operate simultaneously.
Interestingly, the feud may have inadvertently benefited AST, as Trump’s response to Musk’s criticism could jeopardize Starlink’s federal contracts. Additionally, discussions surrounding the restructuring of SpaceX’s projects suggest Musk may reconsider his current commitments, which could further shake up the competitive landscape.
AST SpaceMobile has been making substantial strides in enhancing its infrastructure and establishing partnerships with telecommunications providers, which positions it favorably in the market. Recent agreements—including a coordination initiative with the U.S. National Science Foundation and a $43 million contract with the U.S. Space Development Agency—underscore the company’s growing recognition and credibility.
Looking ahead, AST anticipates activating its cellular broadband capabilities across several continents in the near future, expected to generate substantial revenue in the latter half of 2025. This optimism is bolstered by strategic collaborations and the continuous expansion of their satellite network, which counters any short-term uncertainty posed by Starlink.
Ultimately, despite the unpredictable dynamics between Trump and Musk, AST is gaining investor interest as it prepares to tap into a vast market opportunity. The proactive measures and recent achievements indicate a positive outlook for the company’s future.