In mid-June 2025, AST SpaceMobile Inc. (NASDAQ: ASTS), a space-based cellular broadband provider, saw its stock reach its highest price in nearly 10 months, driven by optimistic analyst projections suggesting a potential upside of 19%. This remarkable surge included a five-day return exceeding 38%, raising concerns among investors who might worry this spike could prove unsustainable without solid backing.
The impressive stock performance coincided with a high-profile dispute between former President Donald Trump and billionaire entrepreneur Elon Musk. Although this feud may not single-handedly account for AST’s recent success, it is likely influencing market sentiments and investor behavior.
AST SpaceMobile has enjoyed substantial growth, recording an increase of about 262% over the past year. Still, competition looms large from Musk’s Starlink, the satellite internet service by SpaceX, which expanded its federal partnerships after the elections last November. Investors are wary of Starlink’s dominant market position, with reports estimating that two-thirds of the satellites in orbit are owned by Musk’s enterprise, potentially threatening AST’s growth as orbital capacity is finite.
Despite these challenges, the ongoing conflict between Trump and Musk might present an opportunity for AST SpaceMobile, as Trump’s remarks about re-evaluating federal partnerships could impact Starlink. Even Musk hinted at a possible end to some partnerships, specifically mentioning a potential cessation of the Dragon spacecraft missions, although he later retracted those comments.
AST SpaceMobile has continued to make strides in building its infrastructure, reflecting significant advances through satellite launches and valuable partnerships with telecommunications providers. The company has secured critical agreements with various government agencies, such as one with the U.S. National Science Foundation and a $43-million contract with the United States Space Development Agency.
As it pivots towards commercialization, AST SpaceMobile anticipates launching initial cellular broadband capabilities across multiple continents in the near future due to these telecommunications collaborations. The company forecasts revenue opportunities ranging between $50 million and $75 million in the latter half of 2025.
Despite uncertainties surrounding Starlink and ongoing external factors like the Trump-Musk feud, AST SpaceMobile stands out as a compelling investment opportunity as it positions itself to tap into a vast market. Investors may find that the developments in this sector highlight not only risks but also the potential for substantial returns.