AST SpaceMobile Stock Set for New High on Verizon Deal

AST SpaceMobile (NASDAQ:ASTS) is poised for a potential surge to new highs following the announcement of a definitive commercial agreement with Verizon (VZ). The partnership, set to commence in 2026, aims to provide direct-to-cellular AST SpaceMobile service to Verizon customers, potentially revolutionizing mobile connectivity.

Markets reacted positively to the news, with AST SpaceMobile shares experiencing a significant upswing. The stock currently trades at $83.44, up 11.63% in pre-market trading, showcasing renewed interest in the space-based cellular broadband provider. Year-to-date, the stock has gained an impressive 245.43%, reflecting the impact of strategic partnerships and technological advancements.

The agreement with Verizon will integrate AST SpaceMobile's space-based cellular network, utilizing the 850 MHz spectrum to offer comprehensive coverage across the continental United States. This collaboration follows a similar agreement with AT&T earlier in May, further solidifying AST SpaceMobile's position in the telecommunications sector. The AT&T partnership involves launching five satellites into low-Earth orbit, with plans to commence commercial service shortly thereafter.

AST SpaceMobile's network is designed to connect directly to everyday smartphones, eliminating the need for specialized equipment. The network operates across premium low-band spectrum, the company's own licensed L-band and S-band spectrum, and up to 1,150 MHz of mobile network operator partners' low- and mid-band spectrum, globally. The acquisition of global S-Band spectrum priority rights, finalized in August 2025 for $64.5 million, enhances its planned space-based cellular broadband offerings and increases service capabilities.

To expand its satellite constellation, AST SpaceMobile has also secured a multi-year, multi-launch agreement with Blue Origin. Scheduled for 2025 and 2026, these launches will deploy approximately 60 next-generation Block 2 BlueBird satellites using New Glenn rockets, aiming to provide continuous space-based cellular broadband service to high-demand markets globally.

However, AST SpaceMobile faces potential headwinds. In July 2025, the company announced a proposed private offering of $500 million convertible senior notes due 2032, intended for general corporate purposes, including funding satellite launches. Following the announcement, the company's stock experienced a 9.44% decline in after-hours trading, reflecting investor concerns over potential dilution. Moreover, increased competition in the space-based cellular broadband market, particularly from SpaceX's Starlink service, presents a challenge. EchoStar's sale of 5G spectrum licenses to SpaceX in September 2025 contributed to a 9% drop in AST SpaceMobile's stock, raising concerns about its market position.

Despite these challenges, the Verizon partnership provides a significant boost to AST SpaceMobile's prospects. Analysts suggest that the collaboration validates the company's technology and opens doors to wider adoption of its space-based cellular broadband service. The potential for increased revenue streams and market reach has fueled positive investor sentiment, driving the stock towards new highs.

Analyst Summary: Bull and Bear Cases

The market's enthusiastic response to the Verizon deal suggests a strong belief in AST SpaceMobile's ability to disrupt the telecommunications industry, and the company's strategic partnerships and technological advancements position it for continued growth.